Denmark Proposes New “Green Tax” on Flights to Spur Sustainable Aviation Fuel Use
The Danish government recently unveiled a plan to tax air travel in an effort to accelerate the aviation industry’s transition to sustainable fuels. The proposed “green passenger tax” aims to make sustainable jet fuel mandatory for all domestic flights by 2030.
According to the measure announced this week, air travel in, to, and from Denmark would incur fees starting in 2025. The charges will gradually ramp up through 2030 to incentivize airlines to embrace biofuels and synthetic e-fuels that reduce carbon emissions.
The tax would begin at about 100 Danish Kroner ($14) per passenger. By 2030, domestic flights would face a 60 Kroner ($9) fee. Shorter flights within Europe would incur a 250 Kroner ($34) charge, while long-haul international routes would see a 400 Kroner ($56) levy.
Authorities state the pricing structure factors in flight distances, recognizing that sustainable alternatives remain costlier for longer routes currently. But the policy still pressures airlines to adopt greener practices.
Denmark aims to completely phase out fossil fuel use in domestic aviation by the end of this decade. The tax charges, paired with government sustainable fuel subsidies, will make biofuel usage the most attractive option financially says officials.
The pending tax legislation requires parliamentary approval. If passed, it would deliver on Denmark’s pledge to cut 70% of greenhouse gas emissions by 2030. The bill also bans selling new diesel and petrol cars from 2030.
Aviation accounts for 2-3% of manmade carbon emissions currently. But with air travel predicted to double by 2050, emissions pose a major threat to climate goals. Sustainable aviation fuels offer up to 80% fewer lifecycle emissions, but face obstacles to widespread adoption.
Critics argue the passenger tax unfairly burdens citizens over the industry itself. But proponents cite the urgency of emissions reduction. Denmark aims to demonstrate that switching to green fuels is viable, sending a message internationally.
Denmark also plans to propose an EU-wide tax on jet fuel for flights within Europe. But the country is moving ahead with its national policy to catalyze change. Norway and Sweden are also shifting towards biofuels through incentive programs.
If Denmark meets its sustainable fuel targets for domestic travel over this decade, it will cement its role as a global leader in clean aviation. By taxing trips to reflect their carbon footprints, the policy aims to propel airlines towards reducing the industry’s impacts on the climate.
