Airlines in the world’s biggest carbon market will eventually have to pay for all the pollution from their planes as the EU strengthens its climate policies under the Green Deal.
A proposal by the European Commission includes a gradual phasing out of emission allowances for airlines and will be part of measures to be announced on July 14, according to a source. The package will also introduce stricter demands on companies in the transport sector to use cleaner fuel.
The EU aims to make its Green Deal and the ambitious environmental overhaul a new growth strategy as its economy recovers from the pandemic. The planned clean push also includes strengthening and expanding the bloc’s carbon market, creating a new emissions-trading programme for buildings and road transport, and setting new emissions standards for cars.
The commission wants to oblige fuel suppliers to blend an increasingly high level of sustainable aviation fuels into the existing jet fuel sold at EU airports, said the source. In addition, the EU is planning to encourage the adoption of synthetic low-carbon fuels under the so-called Fit for 55 package.
Cleaner fuels will also get preferential treatment under the EU’s new energy taxation framework.
The legislative push is aimed at aligning the European economy with a new goal to reduce greenhouse gases by at least 55 per cent by 2030 from 1990 levels. The previous objective was a cut of 40 per cent.
That package will also include proposals to increase the share of renewable energy in the energy mix, boost energy efficiency and toughen national emissions-reduction goals. The commission will aim to make the transition in a “fair, cost-efficient and competitive way”, it said in the draft document that will be sent to national governments and the European Parliament next week.
