Sandbag’s Adrien Assous contributed to a stakeholder dialogue hosted by MEP Peter Liese on 26 October 2026.

Adrien’s speech:

“Unlike with industry and electricity generation, the EU ETS has so far not reduced emissions from air transport.  

This is because airlines can comply with the ETS by simply buying surplus allowances from those other sectors, which is cheaper than decarbonising.  

We ask that aviation’s ability to surrender general allowances should be gradually phased down. 

Amendment 99 proposed by MEP Andersson seeks to ban airlines from surrendering any general allowances at all. Our proposal is a compromise, only asking for a gradual, partial limit. 

This would make aviation allowances more expensive than general allowances. 

But this would raise more funds for Member States. 

Also, air transport is not exposed to carbon leakage, so these costs are easily passed through to customers. Everyone sees that with fuel prices; airlines still make profits. Only on routes where ground transport is competitive, would airlines struggle to pass through their costs. But this competition is a desirable outcome. 

Rail transport deserves consideration: it contributes €250 billion to the EU’s GDP. This is money spent at home, unlike aviation’s turnover which is up to 50% spent of fuel imports – SAFs and offsets only make this worse. 

SAF mandates and subsidies are the wrong answer. China has massively reduced its transport emissions thanks to electrification and high-speed rail, not with SAF. But SAF support keeps airfares down (of all airlines, not just EU ones) and prevents this substitution. 

Let me add that aviation’s demand of allowances is growing and uncertain. Our amendment would reduce pressure and uncertainty on other sectors.“

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