Driving the Aviation Transformation with Climate Funds: Germany's green flight plan
Allocation of Climate Protection Finances Towards the Aviation Sector - Aviation sector to receive financing from climate protection budgets
Here's the skivvy on a coalition of 14 key players in aviation, rallying to encourage the new German government to lend some relief to the aviation sector and draw upon the planned billion-euro funding package from the feds. In their united plea, they assert that Germany's aviation scene has become spendy, and unless urgent action is taken, the sector risks losing its competitive edge on international markets.
Spewing Smoke: Special Funds for Sustainable Jet Fuel?
The chorus is led by the Federal Association of the German Aviation Industry (BDL), Federation of German Industries, IG Metall, Airport Association ADV, and tourism gangs. They've outlined eight strategies to juice up Germany's aviation economy, including shedding state location costs, and supporting next-gen tech. They're also eager to see cash from special assets funneled more aggressively into eco-friendly aviation fuel research and promotion.
You might be wondering where these special assets come from. The Union, SPD, and Greens agreed that a whooping 100 billion euros from the planned brand-spanking-new debt fund earmarked for infrastructure and climate protection would flow into the Climate and Transformation Fund (KTF).
We Need a Green Flight Revolution!
BDL President, Jens Bischof, chimed in, "If we're serious about reaching our climate goals, we need to martial our resources into innovation instead of burdening the industry with additional costs." He underscored the necessity of affordable sustainable fuels and fresh tech to drive aviation's transformation.
The aviation industry is concerned that Germany's recovery from the COVID-19 crisis has been considerably slower compared to the European average, with state taxes and fees pinpointed as the main culprit. To tackle this, our visionaries propose nixing or at least slashing the aviation tax, ramping down bureaucratic red tape, and pouring more funds into aviation research—particularly in the "hydrogen ecosystem" of new aircraft engines, which should extend from production to transport to refueling facilities.
Sources:
- German Government announces infrastructure fund
- 14 Trade Associations and Unions Call for Climate Protection Funds for Aviation
- European Commission encourages use of sustainable aviation fuel
- Germany's National Aviation Research Program
- FAA's Sustainable Aviation Fuel
- The Commission has not yet adopted a decision regarding the allocation of funds from the Climate and Transformation Fund (KTF) to sustainable jet fuel research and promotion, despite the urging by the Federal Association of the German Aviation Industry (BDL) and other key players in aviation.
- German airlines are worried about their competitive edge on international markets due to the high costs associated with the aviation sector in Germany, particularly state taxes and fees, and are advocating for the reduction or removal of the aviation tax, as well as an increase in funding for aviation research, especially in the hydrogen ecosystem of new aircraft engines.
- The German government's plans to allocate €100 billion from a new debt fund to the KTF, earmarked for infrastructure and climate protection, offer an opportunity to provide funds for sustainable aviation fuel research and promotional activities, as advocated by the BDL and other stakeholders in the aviation industry.
