A new analysis by Transport & Environment (T&E) reveals that expanding the scope of key EU legislation could significantly reduce aviation emissions and generate billions to fund the green transition. The study shows that emissions from European flights in 2024 nearly returned to pre-pandemic levels, with 8.4 million flights producing 187.6 million tonnes (Mt) of CO₂—96% of 2019’s flight numbers and 98% of its emissions. Despite this surge, airlines only paid for 30% of the pollution they caused due to widespread exemptions in the EU’s current carbon market rules.
T&E criticizes the sector’s failure to address its environmental impact, calling the current situation “a mockery” of airlines’ post-COVID promises to build back greener. Krisztina Hencz, aviation policy manager at T&E, emphasizes that without urgent legislative action, “green aviation” will remain a fantasy. The EU’s upcoming review of its Emissions Trading System (ETS) presents an opportunity to close these regulatory loopholes and force airlines to fully account for their aviation emissions.
The report highlights that just ten airlines were responsible for 40% of all aviation emissions in Europe last year. Ryanair topped the list with 16.2 Mt CO₂, followed by Lufthansa (10 Mt) and British Airways (8.9 Mt). While Air France slightly reduced its emissions, others like Iberia saw a 10% year-on-year increase. The trend of expanding low-cost carriers, often operating high-frequency routes, continues to drive up total emissions, even beyond Europe’s borders.
A particularly glaring issue is that Europe’s carbon pricing currently applies only to flights within the European Economic Area (EEA), the UK, and Switzerland. This leaves the most polluting long-haul routes entirely exempt from carbon costs. The top three highest-emitting routes in 2024—London to New York (1.4 Mt CO₂), Dubai (1.2 Mt), and Singapore (1.1 Mt)—were all intercontinental and outside the scope of the ETS. In contrast, the highest-ranking intra-EU route, Barcelona to London, ranked only 135th, producing just 0.15 Mt CO₂. This misalignment, according to T&E, is a “fundamental flaw” in the EU’s climate framework.
T&E argues that if the ETS had included all departing flights in 2024, the EU and UK could have generated an additional €7.5 billion in revenue. These funds could be reinvested into sustainable aviation technologies, such as sustainable aviation fuels (SAFs), electric planes, and hydrogen-powered aircraft, supporting long-term decarbonization goals. Fully pricing aviation emissions, they argue, is essential not just for fairness, but for climate effectiveness.
However, the push for broader carbon pricing faces industry resistance. Major airline CEOs—including those from Ryanair and Air France—are lobbying for looser carbon regulations, signaling a potential retreat from climate commitments. As the EU prepares its ETS review, the tension between economic interests and environmental responsibility will shape the future of how Europe addresses aviation emissions.