COPENHAGEN (Reuters) – Denmark’s government on Thursday proposed imposing an average tax of 100 Danish crowns ($14.35) on air travel to help finance a green transition of the airline industry that will enable all domestic flights to use 100% sustainable fuels by 2030.
About half of the expected yearly proceeds of 1.2 billion crowns will help finance an ambition of having all domestic flights using only green fuels by the end of the decade, it said. Green technologies such power-to-X, hydrogen and bio fuels will be eligible for state support, it said.
The other half of the proceeds will be used for cash handouts to elderly people, the government said.
Under the proposal by the majority government, the passenger tax will be gradually phased in from 2025. By 2030, the tax will be around $9 for travel inside Europe, $34 for medium-distance flights, and $56 for long-distance.
“The aviation sector in Denmark must – just like all other industries – reduce its climate footprint and move towards a green future,” said Minister for Climate, Energy and Utilities Lars Aagaard in a statement.
The government aims to have the first domestic route using only green fuels in operation by 2025.
($1 = 6.9706 Danish crowns)
(Reporting by Jacob Gronholt-Pedersen; Editing by Sharon Singleton)