How will EU air pollution regulations affect the aviation industry?


Recent EU regulations aimed at reducing pollution caused by the aviation industry could start to affect how the industry operates, according to a study by the Clean Aviation Joint Undertaking.

The research was carried out alongside McKinsey & Company and found that the recent regulations could make kerosene the most expensive fuel for aircraft in the near future.

It also found that kerosene will be approximately the same price as liquid hydrogen – a cleaner fuel for aircraft currently under development – by the year 2030.

Additionally, the price of synthetic fuels is predicted to drop in the next few years, as they will be mandated by EU regulations and this will increase supply and availability.

Burning kerosene for fuel pumps large amounts of carbon dioxide and other pollutants into the atmosphere, making it a leading cause of global warming.

The report predicts that changes to EU regulations and taxation could increase the price of kerosene to $300 per MWh by 2050 – six times higher than the current price.

By 2050, the report predicts that the price of synthetic fuels, also known as e-fuels or power-to-liquid, will fall to less than $250 and liquid hydrogen to reduce to around $50. These changes would remove the current advantages of using kerosene for air travel.

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EU Policies, 01-09-22