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2mo ago

UK Moves Toward EU-Style Carbon Charges on Long‑Haul Flights as Airlines Warn on Costs

A Resolution Foundation estimate points to about £1.5bn in revenue with roughly £21 per passenger if the UK aligns its ETS with Brussels.

The deal is part of Sir Keir Starmer’s plan to reset relations with the EU
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The chancellor, Rachel Reeves, visiting an easyJet flight simulator at Gatwick last September
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Overview

  • The government says it is working with the EU on emissions-trading alignment but insists no final agreement has been reached.
  • Brussels plans to bring long‑haul aviation into the EU ETS from 2027, and UK alignment under the post‑Brexit reset would mirror that approach.
  • Airlines caution that higher carbon costs, rising sustainable aviation fuel obligations and tax changes could hit competitiveness and fares.
  • EasyJet’s chief executive warned the carrier could base aircraft abroad if air passenger duty rises again, a concern echoed by British Airways and Ryanair.
  • Air passenger duty is due to increase in April to £15 for short‑haul economy and £106 for the longest flights, while extending ETS to shipping is estimated to raise a further £500m and likely lift ferry prices.