EU agrees law to make airlines pay more to pollute

The European Union reached a deal in the early hours of Wednesday on a law to increase the price that airlines have to pay when they emit planet-heating carbon dioxide emissions, adding pressure to the sector to shift away from fossil fuels.
Airlines running flights within Europe currently have to submit permits from the EU’s carbon market to cover their carbon dioxide emissions, but the EU gives them most of those permits for free.
That is set to change under the law agreed by negotiators from EU countries and the European Parliament, which would phase out those free permits by 2026, sources familiar with the discussions told Reuters.
That will mean airlines will have to pay for their CO2 permits, providing a financial incentive for them to pollute less.
A far smaller amount of free CO2 permits will be made available to airlines that use sustainable aviation fuels (SAF) to partly compensate them for the price difference between SAFs and far cheaper fossil fuel kerosene, the sources said.