The Danish government has approved a new tax on air passengers to help fund a transition to sustainable aviation fuels.
The tax, to be introduced in phases from 2025, aims to make all domestic flights in Denmark green by 2030.
New Green Fees for Flyers
Under the plan, taxes will reach 50 Danish kroner (€6.71) per passenger for European flights by 2030.
For medium-haul flights, passengers will pay 310 kroner (€41.58), while long-haul travelers will be charged an extra 410 kroner (€55).
However, passengers on short “transit flights” will be exempt from the new fees.
Funding Sustainable Aviation Goals
The taxes are projected to raise over 550 million kroner (€73.77 million) by 2030 to subsidize the development of green jet fuels in Denmark.
This funding will support renewable energy solutions like “power-to-X,” biofuels, and hydrogen technology.
The fees will also supplement the lowest Danish state pensions.
Aviation currently accounts for around 3.5% of global climate change emissions, according to research.
While some airlines have experimented with sustainable fuels, major obstacles remain before they can fully replace fossil fuels.
Danish aviation has yet to bounce back fully from the impacts of COVID-19.
Domestic capacity currently sits at 76% of 2019 levels, while international travel is at 87%, per aviation data.
Ambitious Green Goals
The new tax aligns with Denmark’s ambitious goal to make all domestic flights green by 2030.
Last year, Prime Minister Mette Frederiksen first proposed the idea but provided few details.
“Will it be difficult? Yes. Can we do it? Yes, I think so. We are already on it,” she stated.
Smaller Danish airports are expected to be disproportionately affected by the new tax, which applies on both outbound and inbound domestic flights.
Under European Union (EU) rules, smaller airports may qualify for state aid to offset the impacts.
With this new tax, Denmark joins the ranks of countries reconsidering aviation’s tax exemptions and subsidies in light of its climate impacts.
The taxes could help set a precedent as governments explore new policies and funding models to decarbonize the industry.
New Fees May Deter Budget EU Travelers
The new air passenger taxes in Denmark could make budget EU travelers think twice about visiting the country.
The fees of €6-55 per flight add up quickly, especially for families or those hopping between EU destinations.
While Denmark will launch its ETIAS scheme in May 2025, aligning with the broader EU, the new taxes impose an additional burden on EU visitors after ETIAS is in place.
Some may opt for cheaper destinations to avoid multiplying fees.
However, more affluent EU tourists and long-term residents will likely absorb the taxes.
The fees may also incentivize greener transportation options like trains or buses.
Aviation Taxes Support Denmark’s Climate Goals
Denmark’s new aviation taxes align with its ambitious pledge to cut emissions 70% by 2030 under the Paris Agreement.
While the taxes burden air passengers, they provide funding to decarbonize domestic flights.
As an EU member state, Denmark’s carbon-cutting efforts support the bloc’s overall climate goals.
The taxes could also inspire more climate-driven immigration policies, like incentives or visas for green investors and innovators.
With initiatives like carbon-neutral flight routes, Denmark is pushing EU aviation in a more sustainable direction.
The new taxes on passengers help propel its climate leadership.
Denmark Leads Charge on Eco-Friendly Skies
With its new tax on air passengers, Denmark is taking steps to align the aviation industry with its ambitious climate goals and vision for sustainable domestic flights.
The tax revenue will provide crucial funding to develop green jet fuels and technologies needed for this transition.
While challenging, Denmark is betting it can catalyze innovation and blaze a trail towards eco-friendly skies.
If successful, Denmark’s model could inspire other countries to follow suit with new taxes and policies to decarbonize aviation.
For an industry long buffered from taxation, flights powered by fossil fuels may soon become a thing of the past.