by Kate Abnett
BRUSSELS (Reuters) – The European Union on Wednesday reached agreement on a law to raise the price airlines have to pay when they emit carbon dioxide (CO2), in a bid to boost the airline industry to give up fossil fuels.
Airlines operating in Europe currently have to obtain permits on the European carbon market to cover their CO2 emissions, but the EU gives them most of these permits for free.
Legislation passed by EU member states and the European Parliament is expected to change that by phasing out such free permits by 2026, sources familiar with the talks told Reuters.
Airlines will then have to pay for their CO2 emission permits, which will encourage them to pollute less.
A much smaller amount of free CO2 permits will be made available to airlines that use Sustainable Aviation Fuels (SAFs) to partially offset the price difference between these fuels and kerosene, a much cheaper fossil fuel , the sources said.
The EU has so far limited its carbon market to covering emissions from flights within the bloc, but negotiators have agreed that Brussels will assess in 2026 whether the Civil Aviation Organization scheme (ICAO), aiming to offset the CO2 emissions of international flights, is on track to achieve net zero emissions by 2050.
Climate advocates have lamented that emissions from international flights are not added to the carbon market.
“Average European families will continue to pay far more for their CO2 emissions than frequent long-haul travellers. We are about to lose another decade of climate inaction,” said Jo Dardenne, director of aviation at the within the non-profit group Transport and Environment.
EU countries and the European Parliament must formally approve the law before it comes into force.
(Reporting Kate Abnett; French version Federica Mileo, editing by Kate Entringer)
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