Denmark's Proposed Green Tax: A Step Toward Sustainable Air Travel
Denmark's government is exploring a green tax on plane tickets as a means to financially support the airline industry's transition towards sustainability
Denmark's government has put forward a proposal to introduce an average tax of 100 Danish krone ($14.35) on air travel. The purpose of this tax is to fund a sustainable transformation of the airline industry, with the goal of enabling all domestic flights to operate on 100% sustainable fuels by 2030.
Around half of the anticipated annual revenue of 1.2 billion krone will be allocated towards supporting the objective of achieving solely green fuel usage for domestic flights by the end of the decade. The government has confirmed that green technologies such as power-to-X, hydrogen, and biofuels will be eligible for financial assistance.
The government stated that the remaining 50% of the funds will be allocated for providing cash handouts to elderly individuals.
According to the majority government's plan, the implementation of the passenger tax will be introduced in stages starting from 2025. By 2030, the tax rates are expected to be approximately $9 for intra-European journeys, $34 for medium-haul flights, and $56 for long-haul flights.
"The aviation industry in Denmark, like all other sectors, is required to minimize its environmental impact and transition towards a sustainable future," stated Minister for Climate, Energy, and Utilities Lars Aagaard.
To achieve this goal, the government plans to establish the first domestic route powered entirely by green fuels by 2025.
