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What the EU climate law means for jet fuel’s tax exemption

July 23, 2021

The European Commission is proposing to end one of aviation’s most unfair tax privileges as part of its Fit for 55 package.

Jet fuel for commercial and private intra-EU flights will gradually be taxed, putting a fairer price on flying. Advanced biofuels and e-fuels will benefit from a zero tax rate for 10 years, helping to kick start the deployment of much needed clean fuels. But the proposal still allows airlines to pay minimal tax rates for 10 years before the proposed rates fully come into force, and the reforms only apply for fuel used on flights within Europe.

Read our briefing to see what this proposal means and how it should be improved.

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