By William J. Furney
A radical new tax on frequent flyers in Europe could reduce carbon emissions from air travel by 21% and raise over €64bn annually, according to a new report. The proposed levy, which would progressively increase with each return flight taken within a year, aims to target the wealthiest individuals who are responsible for the majority of aviation emissions, while leaving most people unaffected.
The report, published by the New Economics Foundation (NEF) and co-authored by environmental advocacy group Stay Grounded, suggests that this frequent flyer levy (FFL) could be a game-changer in addressing the growing carbon footprint of the aviation industry. With emissions rising rapidly after a brief lull during the COVID-19 pandemic, aviation remains one of Europe’s largest contributors to climate change.
How the Tax Works
The proposed tax would kick in after a person’s first return flight in a 12-month period, with the levy increasing by €100 for each additional flight. Longer journeys and first-class travel would incur additional surcharges. By 2028, the report’s model predicts a 26% drop in the number of passengers flying, leading to a 21% reduction in carbon emissions compared to a business-as-usual scenario. This reduction is seen as essential if Europe is to meet its climate goals and curb the aviation industry’s contribution to global warming.
The report points out that a small fraction of people — around 5% of Europe’s population — account for more than half of all flights taken. Under the FFL, these frequent flyers would bear the brunt of the new charges, while the majority, 72%, who fly once a year or not at all, would not face any additional costs.
“This tax would not affect most people but would place the responsibility on those who contribute the most to aviation’s outsized climate impact,” Magdalena Heuwieser, a spokesperson for Stay Grounded, said in the report. “It’s about fairness — making sure those who fly excessively and contribute most to climate change pay for it.”
Addressing Inequality in Emissions
The report highlights the deep inequality in air travel emissions. Globally, just 1% of the population is responsible for 50% of aviation emissions. Within Europe, the disparity is stark: wealthier households are six times more likely to take three or more flights a year compared to low-income households, many of which do not fly at all.
Marlene Engelhorn, an Austrian millionaire and environmental advocate, emphasised the need for such a tax, saying, “The mile-high club of private planet combustion, where wealthy people like me can ferment in our comfort zones, needs to close its doors. It’s time that we contribute to the costs of saving the planet.”
The levy would also target business and first-class travellers, whose flights are far more carbon-intensive than those in economy class because they take up more space. These passengers would face higher charges under the FFL, reflecting the greater environmental impact of their travel choices.
Revenue for Green Initiatives
In addition to cutting emissions, the tax would generate substantial revenue that could be reinvested in Europe’s green transition. The report estimates that the FFL could raise €63.6bn annually, which could be used to fund improvements in public transport, renewable energy projects and efforts to decarbonise the aviation industry itself.
The tax would also provide much-needed funds for climate finance initiatives, including supporting countries in the Global South that are disproportionately affected by climate change but contribute the least to global emissions. The report suggests that a portion of the revenue could be earmarked for these regions, helping to address the imbalance between those who suffer the most from climate change and those who are responsible for causing it.
“We need new sources of funding to accelerate the green transition,” said a spokesperson for NEF. “The frequent flyer levy provides a fair and feasible way to raise these funds, while also reducing emissions from one of the most polluting sectors of the economy.”
Legal Feasibility and Challenges
While the proposal has garnered support from environmental groups, its implementation would not be without challenges. One key issue is data privacy, as tracking individuals’ flights would require collecting and storing sensitive personal information. But the report argues that a GDPR-compliant system could be developed, ensuring that privacy concerns are addressed while still allowing the tax to be implemented effectively.
The report also notes that some countries could choose to implement the tax individually or form coalitions to introduce it at a regional level if EU-wide agreement proves difficult to achieve. National governments would still benefit from the additional revenue, which could be used to support local green initiatives and mitigate the impacts on industries reliant on air travel, such as tourism.
A Solution to Aviation’s Climate Impact?
Aviation is one of the most challenging sectors to decarbonise, with technological solutions such as electric planes and sustainable fuels still in their infancy. The report argues that while these innovations are necessary, they are unlikely to deliver the emissions reductions needed in the short term. As a result, demand-side measures like the FFL are seen as crucial to bringing aviation’s climate impact under control.
The frequent flyer levy is part of a broader push to reform the aviation sector, which has long enjoyed tax exemptions on fuel and other forms of government support. By making frequent flying more expensive, the tax would provide a financial incentive for individuals and businesses to reduce their air travel, while also raising awareness of the environmental cost of flying.
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