EU Climate Policy in Selected Economic Sectors: A Comparative Assessment from the Perspective of European Aviation
Expertise 23. September 2025 Malte Küper / Thilo Schaefer / Cornelius Bähr / Henry Goecke / Marco Trenz EU Climate Policy in Selected Economic Sectors: A Comparative Assessment from the Perspective of European Aviation
The climate protection targets of the EU and Germany require profound transformation across all economic sectors – including aviation, which is considered difficult to decarbonise.
Malte Küper / Thilo Schaefer / Cornelius Bähr / Henry Goecke / Marco Trenz German Economic Institute (IW)
The climate protection targets of the EU and Germany require profound transformation across all economic sectors – including aviation, which is considered difficult to decarbonise.
While sustainable aviation fuels (SAF) and new propulsion technologies can reduce emissions in the long term, aviation will remain dependent on fossil fuels in the medium term.
Regulations such as the European Emissions Trading System (EU-ETS) and increasing blending quotas (ReFuelEU) are intended to promote the use of climate-friendly alternatives. However, they also create competitive disadvantages for European airlines and may contribute to carbon leakage.
This analysis compares aviation with other hard-to-abate sectors and examines whether the current regulatory framework adequately addresses the sector’s specific challenges.
Reform of the EU ETS 1 and accompanying instruments
The reforms to the European Union’s Emissions Trading System (EU ETS 1) for the energy sector, energy-intensive industries, and aviation and maritime transport, due to take place in 2026, must address two key aspects in particular.
Compendium 5.7: CO2 Regulation of Road Transport in Europe
With the Compendium CO2 Regulation in Europe, the IW has been providing the interested public with a comprehensive collection of data on the development of CO2 emissions from passenger car traffic in the European Union, as well as on the applicable regulatory framework, since 2015.
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