European regulators are reviewing three files that will shape aviation decarbonisation policy: the EU Emissions Trading System 2 (ETS2), sustainable aviation policy, and net zero budget allocations.

The review, reported by Sustainable Views, brings together emissions trading, fuel policy and public spending — the three levers Brussels can pull against aviation's carbon output.

What is ETS2?

ETS2 is the EU's second emissions trading system, extending carbon pricing beyond aviation and maritime. Its interaction with the existing aviation allowance regime matters for airline cost structures. Any change to allowance supply or pricing feeds directly into seat costs.

Sustainable aviation

The review also covers EU policy on sustainable aviation, including the regulatory framework around SAF mandates and airline decarbonisation obligations.

Budget pressure

The third strand addresses cuts to net zero budgets — a signal that funding for decarbonisation programmes may tighten even as regulatory obligations increase.

Note: the underlying source item consists of a headline only; no figures, named officials or dates were provided, and none are asserted here.