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Sustainable Aviation

NGO Coalition Pushes EU to End Aviation ETS Exemption

The SASHA Coalition urges the EU to end its ETS exemption for international flights ahead of the July 2026 legislative review.

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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

Photo Credit: SASHA Coalition

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Sustainable Aviation

Delta Air Lines Installs VCT Finlets on 240 Boeing 737NG Jets

Delta Air Lines will fit aerodynamic finlets from Vortex Control Technologies on 240 Boeing 737-800 and 737-900ER aircraft.

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Delta Air Lines will install aerodynamic finlets from Vortex Control Technologies across 240 of its Boeing 737 Next Generation aircraft to reduce drag and lower fuel consumption.

Announced in a company press release on June 17, 2026, the modification program targets the carrier’s Boeing 737-800 and 737-900ER fleets. The installation follows computational fluid dynamics analysis and flight test validation, aligning with Delta’s broader sustainability objectives to address the 90 percent of its carbon footprint generated by jet fuel.

Aerodynamic modifications and fleet implementation

The Vortex Control Technologies (VCT) finlet package consists of small aerodynamic devices installed on the aft fuselage of the aircraft. These structures are designed to reshape airflow around the tail section, reducing flow separation and improving overall pressure distribution. By mitigating aerodynamic drag, the finlets directly decrease the amount of thrust required during cruise, resulting in lower fuel burn.

Delta Air Lines Chief Sustainability Officer Amelia DeLuca stated that the carrier seeks out innovations that reduce environmental impact and generate long-term operational benefits.

“We appreciate the strong partnership with VCT throughout the evaluation process and are looking forward to this implementation to further support our ongoing fleet efficiency initiatives,” DeLuca said.

VCT Chief Executive Officer Gil Morgan noted that equipping the 240 Delta aircraft represents a significant milestone for the manufacturer.

“We are proud to provide a practical technology that helps airlines improve fuel efficiency, reduce carbon emissions and enhance operating economics,” Morgan said.

Regulatory approval and industry adoption

The VCT finlet system operates under a Federal Aviation Administration (FAA) Supplemental Type Certificate (STC). The technology has steadily gained traction among Boeing 737 Next Generation (737NG) operators seeking incremental efficiency improvements. On September 26, 2025, the European Union Aviation Safety Agency (EASA) validated the FAA STC, clearing the devices for installation on European-registered aircraft.

Other operators have also adopted the modification. On July 29, 2025, Avelo Airlines announced a follow-on order for additional VCT finlets. The carrier reported proven fuel savings and emissions reductions after 18 months of in-service performance across its own Boeing 737NG fleet.

AirPro News analysis

We view Delta’s adoption of aft-fuselage finlets as a pragmatic approach to extending the economic viability of its Boeing 737NG fleet. While winglets have long been the industry standard for drag reduction, aft-body modifications represent an incremental but valuable efficiency gain for mature airframes. As airlines manage delayed deliveries of next-generation narrowbody aircraft, retrofitting existing fleets with drag-reducing technology offers an immediate reduction in fuel burn and emissions without requiring significant downtime or capital expenditure.

Sources: Delta News Hub

Photo Credit: Delta Air Lines

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Sustainable Aviation

ATR Calls for EU Action on Regional Aviation Decarbonisation

ATR urges the EU to support regional aviation decarbonisation through SAF, retrofits, and next-gen propulsion funding.

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Regional aircraft manufacturer ATR is urging the European Union (EU) to implement a coordinated financial and regulatory framework to support the decarbonisation of regional aviation, warning that the bloc risks losing its industrial sovereignty in the aeronautics sector.

In a public statement issued on June 16, 2026, the manufacturer detailed its strategic priorities following a June 9 gathering at the European Parliament. The event brought together industry stakeholders and policymakers under the patronage of Members of the European Parliament (MEP) Claire Fita and François Kalfon.

Strategic priorities for European regional aviation

ATR is positioning the regional aviation sector as the essential testing ground for low-carbon technologies. The company argues that regional Commercial-Aircraft, due to their size and mission profiles, offer the first commercially viable scale for validating emerging propulsion systems and retrofit technologies under real-world airline operating conditions.

To accelerate this transition, ATR is lobbying for pragmatic financial support directed toward SAF deployment, retrofit programs, and the development of next-generation propulsion. The manufacturer stressed that without coordinated regulatory and financial backing, Europe’s aerospace industry could cede its leadership position to international competitors.

Balancing decarbonisation with connectivity

The European aviation sector is currently navigating a complex transition driven by stringent environmental regulations and the high capital costs associated with fleet renewal and alternative fuels. ATR highlighted a growing concern among regional operators that the aggressive push for low-emission aviation could disproportionately impact connectivity in remote and underserved areas if not supported by adequate funding mechanisms.

The manufacturer identified SAF as the most effective short-to-medium-term lever for reducing carbon dioxide emissions. However, ATR noted that widespread adoption requires coordinated regulatory backing to ensure adequate supply and to manage the associated costs for smaller regional operators.

AirPro News analysis

We view ATR’s lobbying efforts at the European Parliament as a strategic move to ensure regional aviation is not overlooked in the EU’s broader environmental funding allocations. As mandates like the ReFuelEU Aviation initiative take effect, regional Airlines face disproportionate financial burdens compared to major network carriers due to their tighter margins and smaller economies of scale.

By framing the turboprop segment as the necessary incubator for future technologies, ATR is attempting to secure direct EU investment for its operators and its own research and development pipeline. The emphasis on industrial sovereignty also aligns closely with current European political priorities, reminding policymakers that supporting domestic Manufacturers is critical to maintaining a competitive edge against emerging aerospace programs globally.

Sources: ATR

Photo Credit: ATR

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Sustainable Aviation

Twelve Opens First US Commercial Power-to-Liquid SAF Plant

Twelve’s AirPlant One in Moses Lake, WA begins producing E-Jet fuel from CO2, water, and renewable electricity.

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Industrial carbon transformation company Twelve officially opened AirPlant One in Moses Lake, Washington, on June 10, 2026, establishing the first commercial-scale facility in the United States dedicated to producing power-to-liquid SAF. The facility utilizes captured carbon dioxide, water, and renewable electricity to manufacture synthetic fuel without upstream fossil fuel extraction.

In a press release issued by Twelve, the company confirmed the plant is now operational and producing E-Jet fuel, alongside a byproduct called E-Naphtha. The milestone follows a $645 million funding round secured in September 2024 to scale operations and fulfills a 2022 joint commitment from Alaska Airlines (AS) and Microsoft Corporation to purchase the facility’s output.

Commercializing power-to-liquid aviation fuel

Twelve’s proprietary process bypasses traditional biomass-based sustainable aviation fuel (SAF) production methods. Instead, the Moses Lake facility synthesizes drop-in aviation fuel directly from renewable electricity, water, and captured carbon dioxide. According to the company, this E-Jet fuel delivers up to a 90% reduction in lifecycle carbon emissions compared to conventional jet fuel.

Beyond emissions reductions, the power-to-liquid model introduces a new economic framework for Airlines fuel procurement. Because the primary input cost is electricity, production can be tied to long-term power purchase agreements. Twelve states this structure can offer airlines price predictability horizons exceeding 10 years, insulating operators from the volatility of global crude oil markets.

“We broke ground on AirPlant One with a simple thesis: that the fuels powering the global economy could be made from renewable electricity and air, anywhere in the world,” said Nicholas Flanders, Co-Founder and CEO of Twelve. “Today, that thesis is operational and Alaska Airlines will fly on fuel made right here in Washington State.”

Corporate Partnerships and market demand

The development of AirPlant One relied heavily on early demand signals from major corporate partners. In 2022, Alaska Airlines and Microsoft committed to purchasing the facility’s future output, providing the commercial foundation necessary to secure project financing. Alaska Star Ventures, the airline’s investment arm, also participated in Twelve’s recent funding rounds.

Ryan Spies, Managing Director of Sustainability for Alaska Airlines, noted that the partnership demonstrates how collaboration can advance SAF technology while diversifying fuel supply chains and strengthening energy security.

Microsoft is utilizing a book-and-claim accounting model to apply the environmental attributes of the E-Jet fuel toward reducing its reported business travel emissions. Melanie Nakagawa, Chief Sustainability Officer at Microsoft, stated that the company’s investment helps scale energy solutions and lays the groundwork for cleaner aviation globally.

AirPro News analysis

The activation of AirPlant One represents a critical pivot point for the US sustainable aviation fuel market. While biomass-derived SAF currently dominates the limited global supply, agricultural and waste feedstock constraints will eventually cap its scalability. Power-to-liquid synthetic fuels offer a theoretically limitless production ceiling, provided sufficient renewable energy and carbon capture infrastructure exist.

We view the localized production aspect as increasingly vital. As international Regulations begin mandating physical SAF blending at specific airports rather than relying entirely on book-and-claim credits, domestic facilities like AirPlant One will become essential infrastructure. The ability to offer airlines decade-long fixed fuel prices could also fundamentally alter airline cost structures if power-to-liquid production reaches parity with conventional jet fuel volumes.

Sources: Twelve Benefit Corporation

Photo Credit: Twelve Benefit Corporation

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