Incentivizing Green Fuel Transition and Supporting Elderly Care
Denmark‘s government introduces a groundbreaking measure proposing a $14.35 green passenger tax on air travel to accelerate the transition to sustainable aviation fuels. The tax, set to phase in from 2025, aims to make all domestic flights utilizing only green fuels by 2030. With varying rates, travel within Europe to and from Denmark could cost $9, medium-distance flights $34, and long-distance flights $56 with the green passenger tax.
Half of the estimated $182 million generated annually from the tax will fuel Denmark’s transition to hydrogen, biofuels, and power-to-X, aligning with the goal of achieving completely green domestic flights by 2030. The remaining half will contribute to supporting the country’s elderly population.
Lars Aargaard, Denmark’s Minister for Climate, Energy, and Utilities, emphasizes the aviation sector’s responsibility in reducing its climate footprint and moving towards a green future.
While some American carriers are proactively adopting sustainable aviation fuels (SAFs), the International Air Transport Association (IATA) emphasizes the need for government incentives to drive SAF production, citing low supply and high costs.
This move aligns with a global trend of leveraging tourist taxes to fund sustainability initiatives. Amsterdam and Iceland have implemented similar strategies to finance local services and achieve carbon neutrality goals. Denmark’s proposal signals a commitment to greening its aviation industry and addressing environmental concerns while supporting essential social initiatives.
