IATA says EU must review EU ETS to support competitiveness as aviation decarbonizes

March 24, 2026 |

In Switzerland, the International Air Transport Association (IATA) has called for the review of the European Union’s Emissions Trading System (EU ETS) to enhance European air connectivity and economic resilience by improving the competitiveness of Europe’s air transport industry.

IATA calls for the review to ensure full implementation of CORSIA for all international flights, including flights within the European Economic Area (EEA) routes. To prevent market fragmentations, the EU should avoid regional derogations, additional eligibility hurdles, and overlapping measures that conflict with this global framework.

IATA also called to enable a SAF book-and-claim system for the claiming of environmental attributes under the EU ETS. Allowing purchase-based SAF claiming will enhance investment certainty and affordability which are needed to maintain a level playing field for all operators, according to the entity.

IATA also said that priority should be given to scaling SAF production and supporting the development of emerging zero-emission technologies.

“European aviation policy must bolster competitiveness as it advances decarbonization. Reviewing the EU ETS offers a critical opportunity to refocus efforts on cost-effective emission reductions. The priority must be the full implementation of CORSIA, the reinvestment of EU ETS revenues into SAF and other credible decarbonization solutions, and the elimination of overlapping measures that add cost and complexity without environmental gain. By doing so, we will protect European air connectivity—a vital strategic asset foundational to EU integration, trade, and commerce. Amid global economic strain and geopolitical volatility, the EU ETS review must deliver a harmonized climate policy framework that balances the sector’s competitiveness with its climate ambitions,” said Willie Walsh, IATA’s Director General.

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Category: SAF

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