EU ETS Reforms: Proposed Changes For CORSIA Prepared For Take Off

Following its review of the EU Emissions Trading System (EU ETS), the European Commission published its proposed amendments to the EU ETS (Directive 2003/87/EC and Decision (EU) 2015/1814) (the Proposal) in an explanatory memorandum on 17 July 2026. This includes proposed amendments to the implementation of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The proposed amendments are intended to prepare the EU framework for the start of CORSIA’s mandatory second phase in 2027 and to ensure continued alignment between the EU ETS and the evolving international carbon pricing regime for aviation. Although the proposed amendments are relatively targeted, they provide an early indication of how the Commission intends to balance the relationship between the EU ETS and international carbon pricing in aviation over the coming decade.