Asia Pacific airlines have urged European policymakers to protect a globally coordinated approach to aviation emissions as proposed reforms to the European Union Emissions Trading System move into legislative negotiations.
The Association of Asia Pacific Airlines responded on July 28, 2026, to the European Commission’s EU ETS review proposal presented on July 17. The airline association welcomed continued limits on applying the European carbon market to international flights. It also supported plans for additional sustainable aviation fuel assistance.
However, AAPA warned that expanding a regional emissions system across international aviation could produce overlapping carbon obligations. It could also increase costs and regulatory uncertainty for airlines operating between Europe and Asia-Pacific markets.
The debate carries major implications for international tourism. Asia-Pacific carriers provide essential long-haul connections supporting holidays, business travel, trade, family visits and cargo movement between the two regions.
Stop-the-Clock Approach Offers Airlines Stability
AAPA welcomed the Commission’s decision to maintain the “stop-the-clock” approach for international aviation.
Under this arrangement, the EU ETS is not applied to the full length of qualifying international flights arriving in or departing from Europe. The limitation was introduced while governments continued working through the International Civil Aviation Organization on a global aviation emissions framework.
Maintaining the measure provides greater certainty for airlines planning long-distance operations. Asia-Pacific carriers often fly across several jurisdictions before arriving at European airports. Expanding the EU system could therefore affect route economics, ticket pricing, fleet deployment and future network decisions.
Stable regulations are particularly important because airlines make aircraft and fuel investments years in advance. Sudden changes to carbon costs could influence whether carriers increase frequencies, introduce new destinations or maintain less profitable long-haul routes.
For travellers, any significant rise in airline compliance expenses could eventually affect airfare levels and route availability.
Sustainable Aviation Fuel Support Gains Approval
AAPA also welcomed the European Commission’s proposed additional support for sustainable aviation fuels.
SAF is expected to play an important role in reducing aviation emissions because it can be used in existing aircraft and fuel infrastructure when produced to approved standards. However, current supply remains limited, while production costs are generally higher than those of conventional jet fuel.
Greater financial support could encourage new production facilities, strengthen fuel supply chains and improve access for airlines. It may also help reduce the price gap between conventional fuel and lower-carbon alternatives.
Nevertheless, international coordination remains essential. Airlines operating global networks need reliable SAF supplies across multiple airports rather than only at selected European hubs.
Investment policies must also avoid creating regional imbalances that leave carriers in developing aviation markets with limited access to eligible fuels.
Regional Carbon Expansion Raises CORSIA Concerns
AAPA’s central concern involves the possible expansion of the EU ETS beyond its existing international aviation scope.
The association supported concerns raised by ICAO over unilateral regional measures that could conflict with the Carbon Offsetting and Reduction Scheme for International Aviation.
CORSIA was adopted by ICAO member states in 2016 as the first global market-based system created specifically for international aviation emissions. It requires participating operators to monitor and report emissions while addressing eligible growth above an established baseline.
ICAO identifies CORSIA as the only global market-based measure covering carbon dioxide emissions from international flights. Its structure was designed to prevent a patchwork of overlapping national and regional schemes.
AAPA believes a wider EU system could create duplication if emissions from the same journey become subject to both CORSIA and regional carbon requirements.
Fragmented Rules Could Affect International Connectivity
International aviation differs from many domestic industries because a single flight can involve several countries and regulatory jurisdictions.
Separate emissions systems could require airlines to follow different monitoring, reporting, offsetting and allowance-purchasing rules across their networks. This would increase administrative complexity and make long-term cost forecasting more difficult.
Asia-Pacific airlines collectively account for more than one-third of global passenger and air cargo traffic. Changes affecting their European operations could therefore influence a substantial part of the international aviation market.
The impact could extend beyond airlines. Tourism destinations depend on affordable and dependable international connectivity to attract visitors. Airports, hotels, tour operators, restaurants and local transport businesses also rely on passenger flows generated by long-haul services.
A fragmented system could place additional pressure on routes serving smaller destinations, particularly where passenger demand is seasonal.
CORSIA Remains Central to Global Strategy
AAPA has urged the European Parliament, Council of the European Union and European Commission to reaffirm their commitment to CORSIA during negotiations.
The association argues that regional initiatives should complement the ICAO framework rather than compete with it. A coordinated system would give governments and airlines common rules while reducing the danger of counting or charging the same emissions more than once.
Aviation decarbonisation will still require action beyond carbon markets. Airlines must continue investing in efficient aircraft, improved operations, cleaner fuels and emerging technologies.
Governments must also support SAF production, airport infrastructure and international research partnerships.
EU Decision Could Shape Future Air Travel
The EU ETS review will move through the European legislative process, where institutions may amend the Commission’s proposal before final rules are adopted.
AAPA plans to engage with European institutions and ICAO as discussions continue.
The outcome could shape airline operating costs, investment decisions and passenger connectivity between Europe and Asia-Pacific destinations for years.
A balanced agreement could strengthen climate action while protecting international cooperation. However, overlapping regional rules could create higher costs and uncertainty across the global aviation network.
For airlines and tourism economies, the priority remains clear: meaningful emissions reductions must progress without weakening the international connectivity that supports global travel and economic development.
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