The International Air Transport Association (IATA) warned that the reliance on taxation as the solution for cutting aviation emissions in the EU’s ‘Fit for 55’ proposal is counter-productive to the goal of sustainable aviation.

It said the EU policy needs to support practical emission reduction measures such as incentives for Sustainable Aviation Fuels (SAF) and modernization of air traffic management.

“Aviation is committed to decarbonization as a global industry. We don’t need persuading, or punitive measures like taxes to motivate change. In fact, taxes siphon money from the industry that could support emissions’ reducing investments in fleet renewal and clean technologies,” said Willie Walsh, IATA’s Director-General.

“To reduce emissions, we need governments to implement a constructive policy framework that, most immediately, focuses on production incentives for SAF and delivering the Single European Sky,” he added.

Comprehensive Approach

IATA said achieving aviation decarbonization requires a combination of measures including the use of SAF; ensuring that market-based measures manage emissions until technology solutions are fully developed; reduce unnecessary emissions from fragmented air traffic management (ATM) and resulting inefficiencies; and radical new clean technologies. 

“Aviation’s near-term vision is to provide sustainable, affordable air transport for all European citizens with SAF-powered fleets, operating with efficient air traffic management. We should all be worried that the EU’s big idea to decarbonize aviation is making jet fuel more expensive through tax,” Walsh said. 

“That will not get us to where we need to be. Taxation will destroy jobs. Incentivizing SAF will improve energy independence and create sustainable jobs. The focus must be on encouraging the production of SAF, and delivering the Single European Sky,” he added.

Promoting use of SAF

IATA said the most practical near-term solution to reducing emissions is SAF.

It noted that energy transitions are successful when production incentives drive down the price of alternative fuels while driving supplies up — without specific measures to reduce SAF costs, it does, however, propose a mandate to increase SAF utilization to 2% of jet fuel use by 2025 and at least 5% by 2030.

“Making SAF cheaper will accelerate aviation’s energy transition and improve Europe’s competitiveness as a green economy. But making jet fuel more expensive through taxation scores an ‘own goal’ on competitiveness that does little to accelerate the commercialization of SAF,” Walsh added.