Denmark's government unveiled a proposal on Thursday to introduce an average tax of 100 Danish crowns ($14.35) on air travel. The initiative aims to finance a green transition within the airline industry, paving the way for all domestic flights to rely on 100% sustainable fuels by 2030.
Approximately half of the anticipated annual revenue, totaling 1.2 billion crowns, will contribute to the ambitious goal of making all domestic flights exclusively powered by green fuels by the end of the decade. The proposal outlines that green technologies, including power-to-X, hydrogen, and biofuels, will be eligible for state support.
The remaining half of the proceeds is earmarked for cash handouts to elderly citizens, according to the government's announcement.
The majority government's proposal envisions a gradual implementation of the passenger tax starting in 2025. By 2030, the tax rates are projected to be approximately $9 for travel within Europe, $34 for medium-distance flights, and $56 for long-distance journeys.
“The aviation sector in Denmark must – just like all other industries – reduce its climate footprint and move towards a green future,” emphasized Minister for Climate, Energy, and Utilities Lars Aagaard in an official statement.
Denmark's government aims to have the first domestic route utilizing only green fuels in operation by 2025 as part of its broader strategy to address climate concerns in the aviation sector.
