Aviation and the European Union Emission Trading System: A Bibliometric and Thematic Review

ABSTRACT Aviation is generally recognized as one of the most carbon intensive forms of transport. In order to tackle aviation's environmental impact, in 2012 the sector has been (partially) included in the European Union Emission Trading System (EU ETS), a market‐based mitigation mechanism designed to put a price on carbon emissions and create an economic incentive towards their reduction. In the context of the “Fit for 55” legislative package, proposed by the European Commission in order to reach its medium‐term environmental objectives, a revision of the system has been approved, reinforcing the rules concerning aviation and making emission mitigation through the system more and more costly in the upcoming years. This study undertakes a bibliometric and thematic review to assess the evolving economic and environmental impacts of the EU ETS for aviation. By analyzing 47 studies published between 2009 and 2024, it highlights that while early impacts of the EU ETS were constrained by regulatory limitations such as free allowances and low carbon prices, recent reforms under the “Fit for 55” package signal a more stringent and impactful trajectory. This review identifies key policy implications, emphasizing the need for global alignment and robust mechanisms to accelerate aviation's decarbonization.