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The European Union intends to impose a tax on the greenhouse emissions of all airplanes
Last reviewed: 01.07.2025
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Developed economies are on the brink of a trade war following the European Union's attempt to impose a carbon tax on all planes landing or taking off in the bloc.
If passed, the law would be the first-ever financial penalty to be applied to greenhouse gas emitters.
On January 1, the European Union intends to include international airlines in the emissions trading system. This means that the right to emit carbon emissions will have to be purchased. Countries such as Brazil, India, the United States, Japan, China and Russia have already spoken out against the law, which they say violates international law. Last week, the US Senate even voted to exclude American airlines from the EU system. It should be noted that President Obama may sign the proposal into law.
Back in 1997, the UN began to control aviation emissions of carbon dioxide, but this attempt failed due to massive protests from airlines due to harassment against them.
The authors of the World Bank's report, "Mobilizing Climate Finance," argue that a proposed carbon tax on aircraft emissions is a painless proposition compared to the benefits it would bring.
Thus, a tax of 25 USD per ton will lead to an increase in the price of an air ticket by only 2-4 cents, while carbon dioxide emissions will be reduced by 5-10% - due to the transition to more economical routes and aircraft speeds, the write-off of old designs, etc.
It should be noted that the actual amount of the proposed tax will depend on the ETS market situation. Today, it would be about 15 USD per ton.
Let us recall that on October 1, 2011, the Danish government introduced a tax on fatty foods.