European Airlines Seek Relaxation of Environmental Regulations

The largest European airlines, including Ryanair, British Airways (International Airlines Group), Lufthansa, and Air France-KLM, have called on the European Union to ease environmental regulations, warning that current requirements jeopardize their financial sustainability and global competitiveness, reports FT.

Representatives of 17 leading European carriers gathered in the lobbying organization Airlines for Europe (A4E) are seeking a revision of regulations that require airports to supply sustainable aviation fuel (SAF) and alignment of the emissions trading system with global standards that foresee lower costs for the industry.

– We need to quickly reduce and revise European regulations – stated Carsten Spohr, CEO of the German Lufthansa Group.

According to current EU rules, airlines must use at least two percent sustainable aviation fuel in 2024, with that share increasing to six percent by 2030. Sustainable fuels, which are primarily produced from used vegetable oils or agricultural crops, can reduce net carbon dioxide emissions by about 70 percent compared to conventional fossil fuels. However, their price is several times higher, and supply is limited.

Luis Gallego, CEO of IAG, proposed postponing the implementation of SAF quotas beyond 2030.

– If we do not take action immediately, the only realistic solution will be to push back the deadlines for the obligation to use SAF – said Gallego.

Shifting Responsibility

From the aviation industry, responsibility is being shifted to large energy companies, which have reduced the production of renewable fuels. Michael O’Leary, CEO of Ryanair, states that the matter is very simple.

– If there is no supply, you have nothing to buy – he says.

A similar situation is occurring in the UK, where there is a target of ten percent SAF by 2030. O’Leary predicts that the British government will also have to ease its regulations due to unrealistic market conditions.

In addition to pressure to reduce obligations for using sustainable fuels, airlines are also advocating for adjustments to the EU emissions trading system (ETS). The current EU ETS requires airlines to purchase emission allowances for all carbon dioxide produced, while the global system CORSIA, managed by the International Civil Aviation Organization (ICAO), is significantly cheaper and less restrictive.

– Aligning the EU ETS with CORSIA would create a level playing field for passengers in Europe – stated O’Leary.

However, according to an unpublished European Commission report from 2021, CORSIA is a poorly implemented system that risks inefficiency and undermining European climate policy. Diane Vitry, director of aviation at the environmental organization Transport & Environment, accused airlines of exploiting the current wave of political resistance to green policies.

– CORSIA is such a weak system that it actually provides cheap carbon offsets without real emission reductions – she says.

The pressure on the European Commission to revise green policies comes in the context of global changes in economic and industrial strategy. The administration of U.S. President Donald Trump initiated a new wave of deregulation to empower American companies, while the European Commissioner for Competition recently signaled the possibility of easing the European green agenda to preserve the competitiveness of the industry on a global scale. Carsten Spohr from Lufthansa emphasized that technical and market conditions are changing. Airbus has recently slowed down the development of hydrogen aircraft, and SAF production is lagging behind forecasts.

– We must be realistic; if engineers are abandoning hydrogen aircraft projects and refineries are returning to fossil fuel production, this will affect our ability to achieve net-zero emissions – warned Spohr.