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

  1. Minimum 70 per cent CO2e reduction on domestic air travel by 2030 compared to 1990 levels
  2. Minimum 30 per cent CO2e reduction on international air travel by 2030 compared to 2017
  3. Ultimately: to achieve climate neutrality by 2050

Recommendations

01
Global CO2e tax

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

02
Interim national climate fund

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

03
Power-to-X infrastructure

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

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The climate partnership for Aviation

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Contact

Danish Aviation at Danish Transport Federation

Per Henriksen
[email protected]

70%

CO2e reduction on domestic air travel by 2030 compared to 1990 levels

2 million

tonnes CO2e cut by 2030

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