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Mon, Dec 12, 2022

EU Combats Climate with Added Airline Costs

No-Cost Carbon Permits Cut by 25% in 2024, 50% in 2025

European Parliamentarians have announced a scheme to combat climate change via increased carbon regulations on commercial aviation. 

Negotiators from partner countries and officials announced a deal that will alter the way carriers receive permits from the European Union, changing the current system where they receive permits to cover carbon emissions. The new scheme will cap the number of free permits offered to airlines, cutting the total by 25% from today's levels in 2024, and 50% in 2025. That cap will raise costs for airlines operating within the EU. As part of the incentivization of SAF use throughout carriers, the EU will hold a number of free carbon permits for those airlines using sustainable fuels, largely to provide them a way to offset the inevitable cost difference for the synthesized fuels.

The changes will initially apply only to flights within Europe, but inevitable government creep will likely occur - when does it not? - after the "reassessment" in 2026, a milestone date in the UN's plan to offset international airline emissions to net zero. If the UN's net-zero timeline doesn't seem to be on track by then, then Euro regulators will likely tighten their belts to cover all flights departing the continent, not just those who take off and land there. 

Airlines for Europe said they were "extremely disappointed by the decision", noting that the timeline is exceedingly optimistic given the decarbonization solutions available today. 

FMI: www.a4e.eu

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