A coalition of environmental and industry non-governmental organizations is urging the European Commission to end the European Union Emissions Trading System exemption for international flights, a move proponents estimate could generate €130 billion in carbon market revenues between 2027 and 2035.

In a campaign coordinated by the SASHA Coalition, groups including Opportunity Green, Transport & Environment, and Carbon Market Watch are targeting the upcoming legislative revision of the European Union Emissions Trading System (EU ETS) scheduled for July 2026. The coalition argues that integrating extra-EEA flights into the carbon pricing mechanism is necessary to fund clean aviation technologies, specifically electro-Sustainable Aviation Fuel (eSAF) and Direct Air Capture (DAC) infrastructure.

The financial and environmental cost of the exemption

The European Union initially included aviation in the ETS on January 1, 2012, but introduced a stop-the-clock mechanism exempting extra-EEA flights following international pressure. According to a policy briefing from the SASHA Coalition, this exemption left an estimated 1.1 billion tonnes of carbon dioxide emissions unregulated between 2012 and 2023. The coalition calculates this resulted in €26 billion in uncollected carbon market revenues during that period.

If the exemption is maintained after its scheduled expiration in 2027, the coalition projects that 1.3 billion tonnes of carbon dioxide emissions will go unregulated through 2035. A full-scope ETS could generate an estimated €14 billion in annual revenue for European Union member states by 2030.

Industry perspectives on carbon pricing and CORSIA

The debate centers on the effectiveness of the United Nations Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The European Commission is required to assess by mid-2026 whether CORSIA delivers sufficient environmental ambition. Environmental groups argue the UN scheme is structurally unfit because it relies on offsetting rather than absolute emissions reduction and targets only emissions above a high baseline. Conversely, Airlines and industry groups have historically opposed extending the EU ETS to international flights, citing concerns over market distortions, potential violations of international law, and competitive disadvantages for European hubs.

Clean technology providers argue that a strong regulatory framework is required to drive investment. During a June 9, 2026 roundtable event at the European Parliament convened by the SASHA Coalition, NEG8 Carbon Head of Business Development Dr. David Mulrooney emphasized the necessity of the ETS for commercial strategy.

“To answer your question directly: the EU ETS is foundational to our commercial strategy. NEG8 supplies atmospheric CO2 capture. The stronger and more consistent the carbon price signal, the stronger the investment case for the infrastructure we sell into. ETS is not a policy backdrop for us. It is the market mechanism our business is built on,” Mulrooney stated.

Mulrooney advocated for directing ETS revenue into DAC and eSAF to drive down costs, similar to historical cost curves for solar power and batteries. Member of the European Parliament Cynthia Ní Mhurchú also spoke at the event, noting that regulatory certainty is critical for future planning.

AirPro News analysis

The July 2026 review of the EU ETS represents a critical juncture for European aviation policy. We observe that the European Commission is caught between two competing pressures: the mandate to meet aggressive decarbonization targets and the risk of triggering international trade disputes if it unilaterally prices emissions on extra-EEA flights. The SASHA Coalition focus on revenue generation for eSAF and DAC is a strategic pivot, framing the ETS not just as a punitive tax but as a necessary funding mechanism for the aviation industry transition. Overcoming airline opposition to overlapping carbon pricing regimes will require the Commission to clearly articulate how the EU ETS and CORSIA can coexist without creating prohibitive administrative and financial burdens for operators.

Sources: SASHA Coalition

This article summarizes reporting by Aerospace America by Anne Wainscott-Sargent.

Aviation industry leaders convened in San Diego on June 9, 2026, to outline a pragmatic approach to artificial intelligence, emphasizing the deployment of AI for customer service and logistics while intentionally excluding non-deterministic algorithms from flight-critical systems to maintain certifiability.

During a panel discussion at the American Institute of Aeronautics and Astronautics (AIAA) AVIATION Forum, representatives from United Airlines, Reliable Robotics, Collins Aerospace, and the National Aeronautics and Space Administration (NASA) detailed how advanced automation is currently utilized. According to reporting by Aerospace America, the consensus among panelists highlighted a shift away from abstract autonomy concepts toward solving immediate operational friction using classic software engineering for safety-critical applications.

Airline operations and customer management

For major commercial carriers, artificial intelligence is primarily a tool for managing scale and complexity on the ground. Roberta Zimmerman, Director of Air Traffic Strategy, Data Analytics, and Strategic Vision at United Airlines, detailed the operational volume the carrier manages, expecting 5,359 daily departures and offering over 700,000 daily seats across its network. The airline recently achieved a record of 630,500 passengers flown in a single day.

To support this volume, United Airlines utilizes AI to facilitate flight-by-flight customer communication. Zimmerman noted that the technology provides rebooking alternatives for passengers with delayed first legs and calculates predicted walking times between gates at connecting airports. She also cautioned that the national airspace is a complex system of systems, meaning even minor technological integrations require careful management to prevent any loss of operational continuity.

Certification hurdles for flight-critical systems

While airlines focus on passenger logistics, aerospace manufacturers and automation startups face strict regulatory barriers when applying AI to aircraft control. Reliable Robotics, which successfully demonstrated the remote piloting of an 8,000-pound Cessna Caravan from a distance of 50 miles in 2023, is targeting automated operations at approximately 2,000 US airports equipped with Localizer Performance with Vertical Guidance (LPV) capabilities.

Brandon Suarez, Vice President of Unmanned Aircraft Systems (UAS) Integration at Reliable Robotics, explained that using non-deterministic AI in flight-critical systems is currently unworkable for startups due to the lack of established certification standards. Instead, the company relies on traditional software coding languages and classic algorithms for aircraft automation. Suarez described the certification process as the task of convincing an objective expert that a system is correct, a standard that cannot be met if the software’s decision-making process cannot be explicitly explained.

Travis Klopfenstein, Innovation Program Manager at Collins Aerospace, echoed the necessity for explainable systems. He noted that securing funding and leadership approval requires transparent technology. Consequently, Collins Aerospace focuses on increasing automation to optimize human decision-making rather than pursuing full autonomy, while also developing low-criticality applications such as inventory management systems for aircraft galleys.

Establishing reliability standards

The challenge of certifying advanced automation extends to defining acceptable performance metrics. Chester Dolph, an engineer at the NASA Langley Research Center, highlighted that developers must be able to explicitly explain when and why a system works, as well as the specific conditions and reasons for its failure.

Anna Dietrich, an aviation consultant, pointed out the disparity between human and machine performance expectations. She observed that the aviation industry lacks a quantitative consensus on the reliability expected from human operators, who are afforded a margin for error that automated systems are not. Setting the acceptable performance bar for these new systems remains a primary challenge for regulators and developers alike.

AirPro News analysis

We observe a distinct maturation in how the aerospace sector discusses artificial intelligence. The dialogue has moved past the initial hype of fully autonomous passenger aircraft toward a bifurcated reality. On the ground, airlines are rapidly adopting AI to manage the staggering complexity of crew scheduling, irregular operations, and passenger logistics. In the air, manufacturers and startups are deliberately avoiding machine learning in flight control systems to ensure compliance with Federal Aviation Administration (FAA) certification frameworks. Until regulators establish clear, standardized methods for verifying non-deterministic software, we expect the industry will continue to rely on deterministic, classic coding for any system that directly affects safety of flight.

Sources: Aerospace America

ProLogium Technology Co., Ltd. and Netherlands-based Elysian Aircraft BV signed a Memorandum of Understanding (MoU) on June 18, 2026, to jointly develop and integrate next-generation battery cells for commercial all-electric Electric-Aviation aircraft. The partnership targets pack-level energy densities between 320 and 420 watt-hours per kilogram (Wh/kg), a critical threshold for enabling regional zero-emission flights of up to 1,000 kilometers.

Announced via a joint press release from Taoyuan, Taiwan, and Paris, France, the agreement focuses on adapting ProLogium’s lithium ceramic battery technology for aviation applications. The collaboration will specifically support the development of the Elysian E9X, a planned 88- to 100-seat all-electric airliner designed to challenge conventional regional turboprops and narrowbody jets.

Advancing battery technology for the Elysian E9X

The MoU outlines a framework for rigorous assessment and validation of ProLogium’s next-generation cells within the demanding operational environment of commercial aviation. Aviation battery systems require significantly higher safety standards, weight efficiency, and energy density compared to automotive applications.

Elysian Aircraft BV has been refining the design of its E9X concept since its formal launch in January 2024. Following a conceptual design review completed in April 2026, the Manufacturers updated the aircraft’s specifications to feature six electric motors, a 50-meter wingspan to accommodate the battery packages, and a Maximum Take-Off Weight (MTOW) of 82.5 tonnes.

Rob Wolleswinkel, Co-Chief Executive Officer and Chief Technology Officer of Elysian Aircraft BV, emphasized the need for comprehensive ecosystem development alongside aircraft design.

“Battery technology is a key enabler for electric aviation, but aviation requires far beyond cell performance alone. As we advance our all-electric aircraft, the E9X, and the core electrification technologies, we are also working with suppliers and partners who can help shape the broader ecosystem for electric flight,” Wolleswinkel stated in the press release.

ProLogium expands beyond automotive markets

For ProLogium Technology Co., Ltd., the Partnerships represents a strategic expansion of its solid-state and lithium ceramic battery portfolio beyond the electric vehicle sector. The company recently announced plans to list on the Nasdaq through a merger, positioning its all-inorganic solid-state batteries for broader commercial applications.

The targeted pack-level energy density of 320 to 420 Wh/kg is intended to provide the Elysian E9X with a functional range of 750 to 1,000 kilometers. Achieving this density at the pack level, rather than just the cell level, remains one of the primary technical hurdles in electric aviation.

Vincent Yang, Founder and Chief Executive Officer of ProLogium, noted the stringent requirements of the aerospace sector.

“The development of next generation batteries is not only relevant to the electric vehicle industry, but also closely connected to the future of energy transition and new forms of mobility. Aviation applications place extremely high demands on battery energy density, safety, and weight efficiency, which is why careful and rigorous assessment and validation are essential,” Yang said.

AirPro News analysis

The stated target of 320 to 420 Wh/kg at the pack level is highly ambitious. Current state-of-the-art aviation battery packs generally hover around the 200 to 250 Wh/kg mark. If ProLogium and Elysian can successfully validate and certify a pack exceeding 300 Wh/kg, it would represent a step-change in the viability of 90-seat electric aircraft.

We note that Elysian’s recent design revisions, which increased the E9X wingspan to 50 meters and MTOW to 82.5 tonnes, reflect the physical realities of integrating massive battery volumes. The reduction from eight to six motors also suggests a focus on simplifying propulsion integration and reducing overall system weight. The success of this MoU will likely hinge on ProLogium’s ability to scale its lithium ceramic technology while meeting the European Union Aviation Safety Agency (EASA) thermal runaway containment and crashworthiness standards.

Sources: ProLogium Technology Co., Ltd.