The EU Emissions Trading System and Aviation Support

During this Forum, experts will focus on ETS support and how to make sure it is best fit for kickstarting the SAF industry and enable the long-term sector’s decarbonisation.

The EU’s aviation climate action framework is entering a new phase in which delivery and implementation matter as much as policy design.

Under the European Green Deal and the ‘Fit for 55’ package, the EU combines a tightening carbon constraint with a fuel-switching strategy. The EU Emissions Trading System (ETS) provides the price signal, while ReFuelEU Aviation creates a long-term market for sustainable aviation fuels (SAF) through blending mandates.

Two milestones make the 23rd Florence Air Forum particularly timely.

First, aviation in the ETS is transitioning to full auctioning of allowances, phasing out free allocation, while introducing an ETS-financed SAF support mechanism to help close the price gap with conventional fuels. This raises key challenges around ensuring that support is targeted, administratively feasible, and resistant to gaming, while maximising emissions reductions.

Second, the upcoming ETS review will revisit aspects of aviation ETS design, including its interaction with ICAO’s CORSIA and its scope. While these issues frame the broader context, the Forum focuses on practical implementation—particularly how ETS-linked support can work in practice and how policy interactions can be simplified.

Against this backdrop, the Forum will discuss three key areas:

-ETS-financed SAF support: How to design effective, cost-efficient support mechanisms that encourage long-term SAF uptake, ensure additionality, maintain traceability, and deliver sustainable outcomes.

-Integrity and alignment across EU instruments: How to ensure robust monitoring, reporting and verification (MRV), avoid fraud and double-counting, and align ETS support with ReFuelEU and other instruments without unnecessary complexity.

-Beyond SAF: What ETS-linked mechanisms could further reduce aviation’s climate impact, including support for electric and hydrogen-powered aircraft technologies.

Kindly note that this event is by invitation only.

At the EUI and the Robert Schuman Centre, we are dedicated to removing barriers and providing equal opportunities for everyone. Please indicate in the registration form your accessibility needs, if any. Alternatively, you can contact the logistics organiser of the event.

At FSR, we actively work to achieve gender-balanced representation at all our events. As a platform that connects diverse voices and perspectives in the sector, we strongly value inclusive and gender-balanced panel debates and training courses.