The challenge
Even in the medium-long term, sustainable aviation fuels (SAF) will be needed. It is critical to increase the availability of SAF and specifically, facilitate a process that will result in increasing volumes of Power-to-X based SAF towards 2030.
The key barrier is the price gap between conventional fuels and SAF. Currently, they are 2-5 times higher, and as fuel costs represent approximately 20 per cent of an airline’s cost base, it is vital to introduce some kind of funding mechanis...
Even in the medium-long term, sustainable aviation fuels (SAF) will be needed. It is critical to increase the availability of SAF and specifically, facilitate a process that will result in increasing volumes of Power-to-X based SAF towards 2030.
The key barrier is the price gap between conventional fuels and SAF. Currently, they are 2-5 times higher, and as fuel costs represent approximately 20 per cent of an airline’s cost base, it is vital to introduce some kind of funding mechanism until a reasonable level of economies of scale is established. The proposal for a climate fund financed by a small passenger
contribution shall be seen in this perspective.
The potential
Key objectives for the Danish aviation sector in reducing CO2e emissions
- Minimum 70 per cent CO2e reduction on domestic air travel by 2030 compared to 1990 levels
- Minimum 30 per cent CO2e reduction on international air travel by 2030 compared to 2017
- Ultimately: to achieve climate neutrality by 2050
Recommendations
A global CO2e/fuel tax is recommended as the most efficient mechanism for reducing emissions. A return loop of funds to facilitate the cost of transition (covering the price gap of SAF) will speed up the process and safeguard a level playing field
However, a global tax (or EU-based) will take time. To get started on a national level, the climate partnership recommends the establishment of a national aviation climate fund financed by a small contribution from each departing passenger. Approximately EUR 4 per person can finance the fund by EUR 67.2 million annually
Power-to-X is an ultimate tool to effect the transition. A master plan for green power and Carbon Capture, Utilitisation and Storage (CCUS) is needed in due time
The Climate Partnership for Aviation
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About the partnership
Chairman
Simon Pauck Hansen, COO, SAS
Vice chairman
Thomas Woldbye, Group CEO, Copenhagen Airports
Private partners
Danish Aviation at Danish Transport Federation
20+ committee – representatives from airlines, airports, NGO’s, unions, scientists and consultancies
Public partners
Ministry of Transport
