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EU Aviation and Shipping Sectors May Avoid Excise Duties Until 2035 Amid Tax Reform Negotiations

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European Union member states are negotiating revisions to the Energy Taxation Directive (ETD), with a potential exemption for commercial aviation and shipping from excise duties until 2035. Despite initial proposals aimed at taxing aviation fuels based on greenhouse gas emissions, the reforms have been diluted to reach a compromise.

Concerns persist over the decarbonization effectiveness of the proposal, as sustainable aviation fuels remain significantly more expensive than conventional jet fuel. The discussions are ongoing, with a political agreement anticipated by November.

Sep 18, 2025, 9:07 AM

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