Expect the cost of flights to Europe to increase in 2014. The European Union has proposed a new carbon tax on not just the airlines operating within Europe but also on the segments of intercontinental flights within European airspace.
Under the new proposals, which are expected to be enacted next year, airlines will have to buy pollution rights under the EU emission trading system for the part of a flight within Europe Union members’ airspace.
The new carbon charges legislation will remain in effect until 2020 when a recently agreed international airline carbon emissions tax program comes into force.
The International Civil Aviation Organization (ICAO), the global aviation body, recently endorsed the development of a global market-based measure (MBM) for carbon-neutral growth of international aviation from 2020.