Press release: 28 companies call for EU ETS aviation expansion

Brussels, 18 June 2026:

With jet fuel prices having doubled since the start of the war in the Gulf, 28 European e-fuel producers and electric flight innovators wrote an open letter to the European Commission pointing to a longer-term solution to end Europe’s reliance on jet fuel imports. The letter calls for scaling up public investment into alternative fuels and electric, hydrogen-electric, and hybrid flight by ending the exemption that flights departing Europe enjoy from  the EU emissions trading system (ETS).

The European Commission is reportedly drafting a proposal to do just this, which this week sparked intense opposition from major airlines’ CEOs. The letter’s signatories argue that the Commission should stick behind its proposal, putting funding behind future-facing innovators rather than further padding incumbent corporations’ bottom lines - the aviation industry has benefited from more than €8 billion’s worth of Emissions Trading System (ETS) allowances given for free, and pays no fuel duty or VAT on jet fuel.

Research suggests that the EU could have raised an extra €26 billion in potential revenues in the decade from 2012 if it had not originally exempted international flight emissions. A portion of these funds could have been invested in easing the upfront costs faced by Europe’s e-fuels sector - which manufactures jet fuel from homegrown clean energy - and supporting Europe’s world-leading electric aviation startups.

If the exemption is not lifted in July, the EU will miss out on further revenues as great as €79 billion by 2035, vital to building homegrown aviation innovations to supplant oil imports. 

European innovators, long overlooked, have already moved faster than many thought possible, with Europe accounting for over half of the world’s e-fuel prospected production and European aircraft start-ups slated to make battery-powered, electric, and hybrid flight a reality as soon as the 2030s. But public support is needed for them to scale faster and become competitive, contributing towards a self-sufficient European aviation sector.

The 28 signatories of the letter range from e-fuel producers including Nova Sustainable Fuels and Nordic Generation Fuels, both invested in by Octopus Energy Generation, to Portuguese-Dutch project developer Madoqua, to electric plane innovator Elysian Aircraft.

Philip Duggan, CEO at Nordic Generation Fuels (backed by Octopus Energy Generation), said:

“It’s more than a year since the European Commission promised to uplift sustainable businesses and help them lead the bloc to a competitive future with the Clean Industrial Deal. Since then, the EU has provided some support for e-kerosene producers, but if it is serious about placing them at the centre of this green industrial future then it must fairly price aviation emissions. The EU ETS revision provides the perfect opportunity for the Commission to show its commitment to clean industry in earnest."

Felix Leworthy, CCO at ETFuels, said:

“We support ending international aviation's exemption from the EU ETS. Pricing emissions fairly - and giving investors the regulatory certainty they need - is what creates a real commercial business case, and it is the business case that drives long-term investment. A level playing field between sustainable fuels and fossil fuels is good industrial policy: it reduces Europe's dependence on fossil fuel imports, builds a competitive industry, and positions Europe to lead in the clean energy economy."

Aurelia Leeuw, Director of EU Policy at the SASHA Coalition, said:

"When Europe let polluters off the hook, it's not just our planet that pays but also our boldest entrepreneurs – and aviation has been drastically underpaying for its emissions for 14 years now. This watershed intervention from our leading aerospace innovators should give the Commission confidence that ending international flights' undue ETS exemption is the best path to industrial competitiveness in next-generation industry. It's now for our political leaders to match our boldest businesses' ambition with fair legislation to level the playing field and let them flourish."

Eloa Guillotin, Co-founder and CEO at Beyond Aero, said:

“It is now clear that building a renewables-based aviation sector, including hydrogen-propulsion aircraft, is a strategic imperative for Europe. Europe’s energy security, industrial leadership and citizens’ long-term wellbeing depend on accelerating the transition away from fossil fuels. Aviation must be part of that transition, and policy should reward those investing early in cleaner technologies. Ending the current EU ETS exemption for international aviation would send the right market signal: accelerating demand for breakthrough solutions, strengthening Europe’s industrial base, and helping turn a more sustainable future for air travel into reality.”

David Mulrooney, Business Development Manager at NEG8 Carbon, said:

"Ending the EU ETS exemption for international flights is a crucial mechanism for funding the aviation energy transition. It would price the 70% of EU aviation emissions currently left unregulated, and channel the capital generated toward the technologies that will make sustainable aviation a reality. This includes direct air capture, an essential part of the e-fuel ecosystem. NEG8 is developing the most energy efficient and commercially viable DAC systems, but as a novel technology we need an enabling environment to deliver Europe the benefits we offer. Strengthening the ETS is not a niche policy adjustment — it is the funding architecture that determines whether Europe's e-fuel ecosystem scales.