In a bid to facilitate a green transformation of the aviation industry, Denmark's government has suggested implementing an average tax of 100 Danish crowns ($14.35) on air travel.
The proposed tax aims to support the airline sector's shift to 100% sustainable fuels for all domestic flights by 2030. Approximately half of the estimated annual revenue of 1.2 billion crowns will contribute to achieving the goal of sustainable fuels, supporting technologies such as power-to-X, hydrogen, and biofuels.
The remaining half of the proceeds will be allocated to cash handouts for elderly individuals, according to the government. The proposed passenger tax is set to be phased in gradually starting in 2025, with rates reaching around $9 for European travel, $34 for medium-distance flights, and $56 for long-distance flights by 2030.
Minister for Climate, Energy, and Utilities Lars Aagaard emphasized the necessity for the aviation sector to align with climate goals and transition toward a sustainable future. The government also aspires to have the first domestic route operating solely on green fuels by 2025. Photo by EHRENBERG Kommunikation, Wikimedia commons.