Airlines and automakers brace for EU’s momentous CO2 clampdown

Europe’s airlines are pushing back against the European Union’s upgraded climate plan, saying a planned tax on jet fuel is counterproductive as the region’s transportation sector braces for measures that will make the region the first carbon-neutral continent. Punitive measures such as taxation reduce resources that could support investments to cut emissions, the IATA said, while Lufthansa said the EU’s proposals will need additional measures to ensure a level playing field for carriers. Key to the EU’s ambitious goal is the bid to cut emissions by 55% in 2030 compared to levels in 1990, up from a previous target for a 40% reduction. A transformational overhaul that will change how people drive and fly is at the core of hitting the goals to reduce pollution from transport, a sector that accounts for as much as a quarter of total emissions. To get there, the EU is, among a broad swathe of policy measures. Aviation contributes about 4.5% of total EU emissions. Even before the pandemic brought air travel to its knees, the sector was in the crosshairs of lawmakers and the flight-shaming movement spurred on in part by Swedish climate activist Greta Thunberg. Airlines will eventually have to pay for the pollution from their planes with a gradual phasing out of emission allowances. The EU says it’s concerned that without the curbs proposed, CO2 output will continue to grow, imperiling mid-century climate targets. The proposed measures include taxation on jet fuel for intra-European flights, mandatory carbon offsets as well as requirements for a gradual increase in sustainable aviation fuel blended in with kerosene. A 2% blend will be required starting in 2025, rising to 63% in 2050. An increasing portion will be synthetically made over the period. They’ll be exempt under the EU’s new energy taxation framework.<br/>