Call focuses on policy alignment, SAF mechanisms and reinvestment strategy

Geneva, 19 March 2026 – The International Air Transport Association (IATA) has called for a review of the European Union’s Emissions Trading System (EU ETS), warning that current measures risk undermining the competitiveness of Europe’s aviation sector.

IATA’s position centres on the need to align European policy with global frameworks, particularly the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which was established through the International Civil Aviation Organization.

The association cautioned that overlapping regional measures may introduce unnecessary complexity and cost without delivering additional environmental benefit.

A key element of the proposal is the introduction of a Sustainable Aviation Fuel (SAF) book-and-claim system, allowing operators to account for SAF usage based on purchase rather than physical uplift. This is seen as a mechanism to improve market access and support investment in SAF production.

IATA also highlighted the importance of reinvesting EU ETS revenues into aviation decarbonisation initiatives. Current projections indicate substantial funding requirements, with SAF investment alone estimated to reach up to EUR 376 billion by 2050.

The organisation further noted that rising compliance costs, particularly following the reduction of free allowances, could impact connectivity and limit the sector’s ability to invest in long-term emissions reduction strategies.

The call comes amid broader concerns within Europe regarding regulatory complexity, cost pressures, and economic resilience in a volatile global environment.