Airlines may lose a tax break on jet fuel that has drawn fire from environmentalists, while having to use more non-petroleum alternatives and pay a bigger emissions bill, under major proposals to make Europe the 'first climate-neutral continent'.
A plane is seen during sunrise at the international airport in Munich, Germany, January 9, 2018. REUTERS/Michaela Rehle/File Photo
Proposals issued after intense last-minute negotiations inside the EU's Brussels headquarters called for a progressive introduction of taxes on fuels for flights within the 27-nation bloc, which currently escape EU-wide levies.Climate groups have long criticised the existing tax exemption, while airlines have lobbied to keep it and say badly designed taxes will not cut emissions.
SAF includes bio-based fuels obtained from recycled waste such as used cooking oil or other non-oil sources and - on a much smaller scale so far - hydrogen-based synthetic or e-fuels. In a separate bid to overhaul the EU's carbon market, the Commission proposed phasing out free CO2 permits by 2026 for airlines whose flights within Europe are covered by the scheme.
Airlines, which have set out their own 2050 decarbonisation roadmap, reiterated calls for a pact with policymakers in an implicit appeal for government support to help meet the targets.
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