No, here's why.
What is the EU ETS?
The EU Emissions Trading System (EU ETS) was set up in 2005 as the world's first international emissions trading system, and is now in its fourth trading phase (2021–2030). It is essentially a market-based mechanism for putting a price on carbon. It sets an absolute limit (or cap)on the total amount of greenhouse gases that covered entities can emit each year. This cap decreases over time, so that total emissions gradually fall.
Under the EU ETS, regulated entities buy or receive emissions allowances, which they can trade with one another as needed. At the end of each year, they must surrender enough allowances to cover all of their emissions. The sectors currently covered include power and heat generation, energy-intensive industries, and aviation within Europe.
What is changing for aviation?
On 14 July 2021, the European Commission adopted a series of legislative proposals outlining how it intends to reach climate neutrality in the EU by 2050, including an intermediate target of at least 55% net reduction in greenhouse gas emissions by 2030.
For aviation specifically, the Commission proposes to gradually phase out free emissions allowances and move to full auctioning by 2027, creating a stronger price signal to drive emissions reductions. The total number of aviation allowances will be capped at current levels and reduced annually by 4.2%. The EU ETS currently applies only to flights between airports within the European Economic Area (EEA). For international flights, the Commission proposes to implement the global Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Why these measures are still limited
These EU ETS and CORSIA measures are a step in the right direction, but they remain limited in scope:
- No obligation yet for the first phase (2024–2026). CORSIA only becomes mandatory from 2027 onwards.
- Only excess emissions are covered. They only act on emissions above 2020 levels, meaning they don't cover 100% of CO2 emissions, but only a fraction.
- Only CO2 is counted. Other greenhouse gases are excluded, and the radiative forcing effect (which roughly doubles the climate impact of aviation) is not taken into account. Emissions from source to reservoir are also not included.
- International flights only. All emissions from domestic flights fall outside the scope of these schemes.
This is precisely why your voluntary climate contribution through Greentripper remains meaningful and complementary, it goes further than what regulations currently require.