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The International Air Transport Association (IATA) criticized the EU's Parliament for seeking to expand its emissions trading system to all flights departing the 27-nation bloc.
The IATA, which claims to represent 290 airlines that account for over 83% of global air traffic, has warned that such a move could jeopardize CORSIA, a separate international agreement that allows airlines to buy credits to offset their emissions.
The EU's plan to expand the emissions trading system, according to IATA, would distort competition and weaken EU airlines' and hubs' global competitiveness.
Willie Walsh, IATA's director-general, urged EU countries to reject the plan and commit to negotiating a global aviation emissions agreement.
Environmentalists applauded the EU Parliament's decision, which was part of a package of climate-related measures voted on by lawmakers that included plans to ban the sale of new cars with combustion engines from 2035.
Jo Dardenne, the aviation director of the Brussels-based group Transport and Environment, praised EU plans to track the climate impact of water vapor released by planes and to phase out free emission allowances for airlines sooner.
In the EU, airlines currently receive more than half of their carbon credits for free, but this was set to end in 2027. The deadline has been pushed back to 2025 by European legislators.
