In an effort to reduce greenhouse gas emissions, the European Union has introduced a new phase of its emissions trading scheme (EU ETS). This new phase is intended to result in a healthier environment, but is also likely to result in higher airfares to European destinations.

All flights arriving at or departing from EU airports are subject to the EU ETS, which requires that airlines purchase enough carbon offsets to compensate for the amount of carbon dioxide they generate on these routes. A carbon offset usually takes the form of financial support for projects that reduce greenhouse gas emissions, such as wind farms, forestry projects or the destruction of pollutants. If an airline fails to purchase sufficient carbon offsets, it will have to pay penalties and make up the shortfall during the following year.

Several countries, including the U.S., contend that this requirement violates the international Open Skies Agreement, through which nations grant each other access to their airspace to promote free trade. However, the EU Court of Justice recently dismissed this complaint.

If you fly to Europe to conduct business, you will probably see an increase in airfares during 2012 as airlines pass the cost of EU ETS compliance on to consumers. Several U.S.-based airlines have already added $3 surcharges onto tickets to Europe, though the airlines have not provided specific reasons for the new charge. You may see an increase again in 2013, when the EU’s cap on emissions will tighten.

The new surcharges add to the maze of taxes and fees already paid by international air travelers, which can easily add $100 or more to the price of a ticket. These can include baggage fees, fees to improve airport facilities and security, fees for environmental improvement and many more. Adding to the confusion is the fact that fees vary widely depending on the country you are departing from and the country you are flying to.

For now, the EU ETS is seen as a possible model for other countries that want to reduce greenhouse gas emissions, so this policy – and the consumer fees that result – may become more common in the years ahead.