Greening aviation and maritime transport: policy lessons from Europe!

The transport sector, particularly aviation and maritime, significantly contributes to climate change, indicating a need for targeted policy actions. The European Union (EU) leads with its 2005 Emissions Trading Scheme (ETS)—the world’s first major international ETS—incorporating aviation in 2012 and maritime in 2024, alongside unique legally binding green fuel mandates. This paper compares EU policies towards aviation and maritime sectors to draw lessons for other regions: (1) expand ETS coverage for greater effectiveness and efficiency; (2) allocate free allowances to reduce stakeholder resistance; (3) extend to interregional connections; and (4) measure and address non-carbon impacts.