Greening measures will add around 8% to airline costs, EU estimates

(Euractiv — 10/1/21)

Environmental regulations aimed at cutting the carbon footprint of aviation will increase the cost of flying by around 8% by 2050, according to the European Commission. The EU executive tabled a package of energy and climate laws in July this year, aiming to halve the EU’s carbon emissions by the end of the decade before reaching net-zero by 2050. Several of those are focused on the aviation sector, such as plans to scrap the tax-free status of kerosene, and phasing out free CO2 permits for flights covered by the EU’s carbon market. Another flagship measure is a mandate that jets refueling at EU airports uplift a set percentage of sustainable aviation fuels (SAFs). SAFs, which are made from waste-based biofuels and electro-fuels, are significantly more expensive than kerosene. And that is likely to be reflected in the price of airline tickets… Chelsea Baldino, a researcher with the International Council on Clean Transportation, said she expects the impact on prices to be muted up to 2035 due to the small quantities of SAF required under the mandate, but that the measure “will likely raise prices” in the long term. “This just shows how for a long time the aviation sector has been insulated from feeling the effects of any policies. They’ve received exceptions from the emissions trading scheme and there is no tax on kerosene, so it’s good that we’re starting to incorporate carbon pricing into the sector,” she said.