Denmark Proposes $14 Green Passenger Tax For Air Travel

Lacey Pfalz

by Lacey Pfalz
Final up to date: 9:00 AM ET, Fri November 10, 2023

Denmark’s authorities proposed a brand new measure that might require a tax of 100 Danish crowns, or $14.35 on air journey to encourage the nation’s home flights to make the most of solely sustainable fuels by 2030.

In line with Reuters, the proposal would steadily part the tax into the business starting in 2025. By 2030, journey inside Europe to and from Denmark would price $9, medium-distance flights would price $34 and long-distance would price $56 with the inexperienced passenger tax. 

Half of the estimated 1.2 billion crowns a 12 months generated from the tax would finance the nation’s transition to hydrogen, biofuels and power-to-X to finish Denmark’s aim of getting all home flights use solely inexperienced gasoline by 2030. The opposite half of the cash would go to assist the nation’s aged. 

“The aviation sector in Denmark should – identical to all different industries – scale back its local weather footprint and transfer in the direction of a inexperienced future,” mentioned Lars Aargaard, Denmark’s Minister for Local weather, Power and Utilities, in a press release. 

The aim to make aviation a greener business is a crucial one, however one which many American air carriers are taking upon themselves with out the identical type of governmental route as Denmark is proposing. Southwest simply signed a deal in early November that might enable for the acquisition of as much as 680 million gallons of SAFs, which might start in 2028. 

But the Worldwide Air Transport Affiliation (IATA) says that attributable to low provide and excessive price, sustainable aviation fuels need to be incentivized by the governments which have signed the Paris Local weather Settlement. 

“The very first thing governments ought to do is create supporting insurance policies to extend SAF manufacturing,” mentioned Marie Owens Thomsen, SVP of sustainability and chief economist for IATA in an official LinkedIn put up in Could 2023. 

Vacationer taxes have develop into a well-liked option to fund new tourism developments this 12 months, and particularly so for funding expensive sustainability initiatives.  

In October, Amsterdam introduced it could enhance its vacationer taxes in 2024, elevating a cruise passenger tax to $11.50 and charging lodge visitors 12.5 p.c the price of their lodge room — a choice that might assist fund native providers. When carried out, it could be the most costly vacationer tax in Europe. 

In September, Iceland introduced it, too, would implement a vacationer tax to assist obtain its 2040 carbon neutrality aim and offset the environmental impression of tourism on the nation’s pure sources.

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