IATA criticizes EU plans to raise airline green taxes

IATA and Walsh have repeatedly urged European regulators to change their approach and support efforts to reduce aviation emissions through sustainable aviation fuel (SAF) production. Following IATA's Wings of Change Europe event on November 21, they called for collaboration between industry and governments to enhance Europe's aviation competitiveness and sustainability.

Walsh criticized Europe's "overregulation," claiming it diminishes global competitiveness. He stated that taxing passengers won't cut CO2 emissions since planes will still operate with lower load factors reminiscent of past decades. This could harm socio-economic conditions without environmental benefits. Instead, he advocated for practical actions like reviving the single European Sky initiative to cut emissions significantly.

Walsh also urged better incentives for SAF production. On December 10, IATA reported disappointing SAF production levels despite increases. Governments send mixed signals by subsidizing fossil fuel exploration while SAF production lags behind expectations.

In 2024, SAF production reached 1 million tonnes but fell short of previous estimates due to delays from key US producers now planning ramp-ups in early 2025. By then, SAF is expected to account for only a small fraction of total jet fuel production.

On December 18, the EU approved a regulation introducing a Flight Emissions Label (FEL) system for voluntary adoption by airlines operating within or departing from the EU starting July 2025. The FEL aims to standardize flight emission calculations using advanced international standards through the European Union Aviation Safety Agency (EASA).