The largest airline in Europe, Germany’s Lufthansa, just began charging its customers an Environmental Cost Surcharge to help cover the very expensive sustainable aviation fuel (SAF) the EU has mandated be used. The extra costs could be as high as 72 euros, or $77. For now.
European regulators implemented requirements that two percent of fuel used at EU airports be SAF by 2025, six percent by 2030, and 70 percent by 2050. Since SAF costs anywhere between 120 percent and 700 percent more than fossil-based jet fuels, the surcharge really is no surprise.
Regulators cannot expect companies to absorb these costs. It is practically impossible. Basic economics tells us that companies almost always pass along extra expenses to consumers. Lufthansa has even said they “will not be able to bear the successively increasing additional costs resulting from regulatory requirements in the coming years on its own.”
Perhaps this is all by design. Those pushing for a net-zero world actually want to see a drop in demand for anything that consumes fossil fuels. Aviation groups contend that EU and European state governments have mostly promoted the idea that “airlines don’t need to fly as much and that it’s ok—even desirable—for people to fly less.” And there is little pushback for fear of retribution from regulators or environmental groups.
Climate activists are of the same mentality. “Fly less. If you have to fly, buy offsets…..But try to fly less.”
In other words, just change your lifestyle to fit the climate agenda.
Aviation fuel surcharges are likely to come to U.S. shores eventually. We’re usually only a few steps behind Europe when it comes to drastic climate policy.
Currently the SAF portion of jet fuel in the U.S. is at 0.1 percent, or approximately 15.8 million gallons. The Biden administration launched the SAF Grand Challenge in 2021 with production goals of three billion gallons by 2030 and 35 billion gallons by 2050. You can count on travelers picking up part of that tab.
Read the full Townhall article here.
Kristen Walker is a policy analyst for the American Consumer Institute, a nonprofit education and research organization. For more information about the Institute, visit www.theamericanconsumer.org or follow us on Twitter @ConsumerPal.