For the first time, part of the revenue from the carbon tax charged to air passengers will go towards the aviation sector. A measure applauded by airlines that have been demanding this step since 2020. “The principle of this decision is very positive”an official source from the association that represents airlines in Portugal (RENA) told Negócios. However, he emphasizes that they are waiting to know how it will be implemented in concrete terms.
The new rules, approved by the last council of ministers, provide the transfer of a maximum of 40 million euros “in favor of decarbonization actions or activities in the civil aviation sector”says the resolution published this week. More specifically, support for companies to “stimulate the national production of sustainable aviation fuels (SAF) and sustainable electrofuels (eSAF) – to be granted under the National Roadmap for the Decarbonization of Aviation (RONDA), in 2026, – finds correspondence in the revenues obtained by the Environmental Fund through Aviation Emission License Trading (CELE) and the carbon tax, and should contribute to the decarbonization of the sector”.
The aviation sector is responsible for approximately 2% of global carbon dioxide (CO2) emissions and, as the Government highlights, “without significant interventions” these emissions could triple by 2050, as reported by the International Civil Aviation Organization (ICAO).
In 2023, passengers paid a total of 59.3 million euros in carbon tax on air travelwhich came into force in July 2021 to offset emissions from the aviation sector, with the regulator (ANAC) delivering 57.5 million to the Environmental Fund, which can use this amount to finance actions outside aviation activity.
Until now, no portion was specifically directed to the sector, having generated criticism including from the president of ANAC, Ana Vieira da Mata. A situation that will change, however, no further details are yet known, such as whether support may involve discounts on the purchase of this fuel by air carriers.
The details will be known later when the ordinance is published in Diário da República with the conclusions of the work that will be carried out jointly by ANAC, Directorate-General for Energy and Geology (DGEG) and Portuguese Environment Agency (APA), for example .
Airlines have warned of the cost increases that the new European rules for incorporating SAF – produced from waste oil of organic origin such as used cooking oil – may imply. And which will be passed on to passengers, reflecting the increase in ticket prices.
Lufthansa, among other companies, has already warned that it will charge an extra fee next year, which marks the beginning of the new rules with the obligation to incorporate up to 2% of SAF. A percentage that will gradually rise to 6% from 20230, to 20% in 2035 and to 70% after 2050.
Here, recently TAP’s executive president, Luís Rodrigues has also warned that they are in a race against timeespecially considering that there is not enough SAF on the market to reach European targets. Given the scarce production, this fuel is four times more expensive than traditional fuel. As for measures to mitigate this extra cost, he only said that they are still evaluating.
As for national SAF production, in September 2023 Galp announced the start of two projects, with an investment of 650 million euros, for the repositioning of the Sines refinery: the construction of an advanced biofuels unit and the installation of 100MW of electrolyzers for green hydrogen production. The advanced biofuels unit will allow Galp to make 270,000 tons/year of SAF/HVO available to the market.
Questioned by Negócios about the status of the project – a joint venture (75-25) between Galp and the Japanese conglomerate Mitsui – an official source from the oil company explained that they maintain the forecast for starting operations in 2025.
Source: www.jornaldenegocios.pt
