News
Tightened environmental regulations add complexity for regional airlines
Description
As Europe tightens its climate policies, regional airlines are facing an increasingly complex compliance landscape under the EU Emissions Trading System (EU ETS) and related frameworks such as CORSIA and RefuelEU Aviation.
The latest revisions to the EU ETS Directive, including changes to free allocation methodologies, expanded reporting obligations, and the phasing out of free allowances by 2026, will significantly affect how airlines calculate and manage their carbon exposure. For regional carriers, these updates bring new financial and administrative challenges, particularly as they juggle compliance with overlapping systems like the Swiss ETS and UK ETS.
At the same time, rising EUA price volatility, the introduction of Sustainable Aviation Fuel (SAF) mandates, and stricter reporting deadlines are reshaping how airlines plan their environmental and financial strategies.
In this article originally published in ERA’s Magazine (European Regions Airline Association, Pages 24 – 25), María de la Rica and Mark Latimer, experts in aviation compliance at Vertis Environmental Finance, break down the key regulatory changes and their implications for the sector, from managing free allocation reductions to navigating new fuel-uplift requirements.
