The Danish Government proposed imposing an average tax of 100 Danish krone or $14 (€13.41) on air travel to help finance a green transition of the airline industry that will enable all domestic flights to use 100 per cent sustainable fuels by 2030.
The proposal presented last Thursday, November 9, outlines that approximately half of the anticipated annual revenue of 1.2 billion crowns will be allocated to funding the ambitious goal of transitioning all domestic flights to use green fuels by the end of the decade.
The aviation sector in Denmark must – just like all other industries – reduce its climate footprint and move towards a green future. – Lars Aagaard, Denmark’s Minister for Climate, Energy and Utilities
As for the remaining half of the proceeds, the government revealed that they will be distributed directly to elderly individuals in the form of cash payments.
According to the government’s plan, the passenger tax will gradually be introduced in 2025. Whereas, by 2030, the tax rates are expected to reach approximately $9 (€8.42) for intra-European travel, $34 (€31.83) for medium–distance flights, and $56 (€52.42) for long-distance flights.
Moreover, the Danish government revealed that it aims to launch the inaugural domestic route powered exclusively by green fuels by 2025.
Similarly, in a move to restrain carbon dioxide emissions (CO2), the Netherlands’ government has recently tripled the passenger tax, starting the year with a significant increase from €8 to over €26 per flight ticket. This increase represents a notable rise of €18.48 in the passenger tax.
Authorities in the Netherlands argue that raising the air passenger tax could result in lower prices for both airline and train tickets. The government aims to encourage the choice of trains over planes. Notably, the air passenger tax exceeding €26 applies to short and long-distance tickets.
In a broader context, sustainability for air travel has consistently been a subject of contemplation, especially as the European Consumer Organization and its 23 member organisations filed a complaint to the European Union Commission. Their concerns centred on the alleged misleading information and climate-related claims made by 17 airlines, considering their claims as part of the “greenwashing” narrative.
According to the members, statements suggesting that paying extra credits can effectively neutralise, compensate, or offset the carbon dioxide emissions of a flight are entirely untrue. They emphasise the uncertainty surrounding the actual climate benefits of such offsetting efforts, whereas the harm of CO2 emissions is undeniable.