Denmark on Friday agreed to impose a tax on air passengers to help finance the airline industry’s transition to greener practices, which will be gradually phased in from 2025, the government said.
The government in November proposed imposing an average tax of 100 Danish crowns ($14.35) on air travel to help finance the industry’s green transition, which aims to enable all domestic flights to use 100% sustainable fuels by 2030.
Under Friday’s agreement, the tax by 2030 will reach around 50 Danish crowns ($7.35) per passenger for intra-European flights, 310 crowns for medium-distance flights, and 410 for long-distance, according to a statement from the taxation ministry.
Transit flights leaving after a stop-over in a Danish airport will be exempted, according to the statement.
According to National Oceanic and Atmospheric Administration, a study has found that aviation contributes to 3.5% of climate change. The research indicates that two-thirds of this impact result from various factors, including contrails, nitrogen oxides, water vapor, sulfate aerosol, soot, and other aerosols. The remaining one-third is attributed to the cumulative heat-trapping effects of long-lived CO2 emissions, totaling 32.6 billion tonnes between 1940 and 2018, roughly equivalent to the total global CO2 emissions in 2010.
In October 2021, the global aviation industry took a significant step toward climate action by committing to achieving net-zero carbon emissions by 2050. This commitment is supported by the implementation of accelerated efficiency measures, energy transition initiatives, and innovation across the aviation sector, in collaboration with governments worldwide.
The goal of achieving net-zero carbon emissions by 2050 is not only crucial for the aviation industry but also aligns with the Paris Agreement’s objective to limit global warming to 1.5 degrees.
(With inputs from Reuters)