A proposal the European Commission will present next week includes a phasing out of emission allowances for airlines, a source familiar with the matter told Bloomberg News.
Airlines in the world’s largest carbon market will eventually have to pay for all of their aircraft’s pollution as the European Union strengthens its climate policies under the Green Treaty.
A proposal from the European Commission includes a phasing out of emission rights for carriers and will be part of the measures to be announced on July 14, according to a person with knowledge of the matter. The package will also introduce stricter requirements on companies in the transport sector to use cleaner fuel.
The EU aims to turn its green deal and ambitious environmental review into a new growth strategy as its economy recovers from the pandemic. The planned net boost also includes strengthening and expanding the block’s carbon market, creating a new emissions trading program for buildings and road transport, and setting new emissions standards. for cars.
The Commission wants to force fuel suppliers to combine an increasing level of sustainable aviation fuels with existing aircraft fuel sold at EU airports, said the person, who called for no identify because conversations about bills are private. In addition, the EU executive plans to encourage the capture of low-carbon synthetic fuels under the so-called Fit for 55 package.
Cleaner fuels will also receive preferential treatment in the new EU energy taxation framework.
The legislative push is aimed at aligning the European economy with a new target of reducing greenhouse gases by at least 55% by 2030 compared to 1990 levels. The previous target was a 40% cut.
This package will also include proposals to increase the share of renewable energy, increase energy efficiency and tighten national emission reduction targets. The Commission will aim to make the transition “fairly, cost-effectively and competitively,” he said in the draft document that will be sent to national governments and the European Parliament next week.
A Climate Action Social Fund will be launched to help the most vulnerable households offset the costs of the transition. To help allay the concerns of the poorest member states, the EU also wants to strengthen the Carbon Market Modernization Fund. which supports lower-income countries and redistributes one-tenth of carbon quotas for auctions.