The struggle to put a carbon price on a flight

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The struggle to put a carbon price on a flight
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The journey to a net-zero aviation industry will be a slow one

Save time by listening to our audio articles as you multitask-backed scheme has required airlines to offset emissions above a baseline by buying credits. On December 6th thedecided to bring airlines deeper into its carbon-trading scheme. These are steps in the right direction, even if they are unlikely to bring about fast enough decarbonisation for Europe to hit its goal of a net-zero aviation industry by 2050.

The ideal carbon-pricing scheme would apply across the economy, allowing trade-offs to be made between different activities. If society decided that flying was especially important, there would be fewer permits for steelmaking. The price of carbon would reflect both the ease of substituting a less polluting energy source and the value of the activity it fuels. The faulty logic behind excluding airlines from the’s scheme was that there was not yet a viable alternative for jet fuel.

But there are ways of reducing the carbon intensity of a flight. More efficient aircraft help, as does smarter pricing to ensure every seat is used. Even without a carbon price, the carbon intensity of a passenger kilometre has fallen from around 1.4kg of carbon dioxide in 1960 to 0.1kg in 2018. Carbon prices can also change the behaviour of consumers, encouraging them to opt for a train, bus or boat where available.

As airlines have not fully recovered from the covid-19 pandemic, there is currently no requirement to offset emissions. From 2024 the baseline will be lowered to 85% of emissions in 2019. Yet even this will not have much impact. Credits are cheap, costing about $3 a tonne compared with around €90 a tonne in the. And airlines may be able to avoid buying them at all by using a bit of sustainable aviation fuel, made from waste cooking oil, which is heavily subsidised in America.

So far nowhere has opted for a carbon-pricing scheme that operates across the whole economy. By incorporating airlines into its carbon-trading scheme Europe is at least heading in the right direction. But with the scheme’s limitations, and with the rest of the world lagging behind, the journey to a net-zero aviation industry will be a slow one.

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