Airlines to be charged more for pollution under EU Green Deal | Aviation News

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A proposal to be unveiled next week by the European Commission includes a phase-out of emission allowances for airlines, a source familiar with the matter told Bloomberg News.

Through Bloomberg

Airlines in the world’s largest carbon market will eventually have to pay for all the pollution from their planes as the European Union strengthens its climate policies as part of the Green Deal.

A proposal from the European Commission provides for a gradual elimination of emission allowances for carriers, and will be part of the measures to be announced on July 14, according to a person familiar with the matter. The package will also introduce stricter requirements on companies in the transport sector to use cleaner fuels.

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 the strengthening and expansion of the bloc’s carbon market, the creation of a new emissions trading program for buildings and road transport, and the establishment of new emissions standards for cars.

The Commission wants to force fuel suppliers to blend an increasingly higher level of sustainable aviation fuels into existing jet fuel sold at EU airports, said the person, who asked not to be identified because discussions on bills are private. In addition, the EU executive plans to encourage the adoption of low-carbon synthetic fuels as part of the Fit for 55 package.

Cleaner fuels will also benefit from preferential treatment under the new EU energy tax framework.

The legislative push aims to bring the European economy in line with a new target of reducing greenhouse gases by at least 55% by 2030 compared to 1990 levels. The previous target was a reduction of 40%.

This package will also include proposals to increase the share of renewable energies, increase energy efficiency and strengthen national emission reduction targets. The Commission will aim to make the transition in a “fair, cost-effective and competitive” way, she said in the draft document that will be sent to national governments and the European Parliament next week.

A Social Mechanism Fund for Climate Action will be launched to help the most vulnerable households offset the costs of the transition. To help allay the concerns of poorer member states, the EU is also keen to strengthen the Carbon Market Modernization Fund. which supports low-income countries and redistribute one-tenth of carbon allowances for auctions.



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