by Lacey Pfalz
Last updated: 9:00 AM ET, Fri November 10, 2023
Denmark’s government proposed a new measure that would require a tax of 100 Danish crowns, or $14.35 on air travel to encourage the country’s domestic flights to utilize only sustainable fuels by 2030.
According to Reuters, the proposal would gradually phase the tax into the industry beginning in 2025. By 2030, travel inside Europe to and from Denmark would cost $9, medium-distance flights would cost $34 and long-distance would cost $56 with the green passenger tax.
Half of the estimated 1.2 billion crowns a year generated from the tax would finance the country’s transition to hydrogen, biofuels and power-to-X to complete Denmark’s goal of having all domestic flights use only green fuel by 2030. The other half of the money would go to help the country’s elderly.
"The aviation sector in Denmark must – just like all other industries – reduce its climate footprint and move towards a green future," said Lars Aargaard, Denmark’s Minister for Climate, Energy and Utilities, in a statement.
The goal to make aviation a greener industry is an important one, but one that many American air carriers are taking upon themselves without the same kind of governmental direction as Denmark is proposing. Southwest just signed a deal in early November that would allow for the purchase of up to 680 million gallons of SAFs, which could begin in 2028.
Yet the International Air Transport Association (IATA) says that due to low supply and high cost, sustainable aviation fuels need to be incentivized by the governments that have signed the Paris Climate Agreement.
"The first thing governments should do is create supporting policies to increase SAF production,” said Marie Owens Thomsen, SVP of sustainability and chief economist for IATA in an official LinkedIn post in May 2023.
Tourist taxes have become a popular way to fund new tourism developments this year, and especially so for funding costly sustainability initiatives.
In October, Amsterdam announced it would increase its tourist taxes in 2024, raising a cruise passenger tax to $11.50 and charging hotel guests 12.5 percent the cost of their hotel room — a decision that would help fund local services. When implemented, it would be the most expensive tourist tax in Europe.
In September, Iceland announced it, too, would implement a tourist tax to help achieve its 2040 carbon neutrality goal and offset the environmental impact of tourism on the country’s natural resources.
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