The reduction of greenhouse gas (GHG) emissions from international aviation and shipping is a key priority for policymakers. The International Maritime Organization (IMO) has adopted its 2023 Greenhouse Gas Strategy and is working on the adoption of a carbon pricing instrument to decarbonize international shipping. Similarly, the European Union (EU) has extended its emission allowance trading scheme (ETS) to international shipping, while the International Civil Aviation Organization (ICAO) has adopted the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). CORSIA runs in parallel to the EU ETS to intra-EEA flights. The paper analyzes the approach taken by EU policymakers for the inclusion of aviation and shipping in the EU ETS. In particular, it discusses the regulated entities, exemptions, allowance types, geographical scope, GHG types, revenue use, fines, Monitoring Reporting and Verification (MRV) and allocation rules. By exploring the policy progress made in the two sectors and the lessons learnt from a cross-sectoral comparison of the market-based measures, this article provides valuable insights for policymakers, industry stakeholders, and other interested parties seeking to promote an effective and equitable energy transition in international aviation and shipping.