EU governments are considering a 10-year delay to introducing bloc-wide minimum excise taxes on aviation and maritime fuels, according to a draft compromise circulated under Denmark’s rotating presidency.
The text would keep kerosene for intra-EU flights and bunker fuels for shipping within long-standing EU tax exemptions until at least 2035, in an effort to complete the overhaul of the Energy Taxation Directive first proposed in 2021.
The draft states: “In 2035, the Commission should examine the possibility of taxation of air navigation and waterborne navigation and propose amendments to this Directive, where appropriate,” and says the extended exemption is intended “to maintain the competitive position of Union companies.”
Negotiators from member states are due to discuss the proposal in Brussels on Friday, with the presidency aiming for a deal in November.
Before the 10-year period ends, only small aircraft with a maximum of 19 seats and boats classified as “private pleasure craft” would face minimum EU taxes, according to the draft. Any agreement on the Energy Taxation Directive requires unanimous approval from all 27 EU countries.
The European Commission’s 2021 proposal sought to align energy taxation with climate goals by phasing out fossil-fuel exemptions and taxing the most polluting fuels at higher minimum rates; Parliament is consultative on tax files while the Council decides by unanimity. The draft also points to implications for companies already navigating other rules.
In aviation, ReFuelEU Aviation requires a 2% share of sustainable aviation fuel in 2025, rising to 6% in 2030 and 20% by 2035; carriers including Lufthansa have introduced environmental surcharges of roughly €1–€72 per ticket depending on route and cabin; IATA has estimated about $1.2 billion in SAF purchases in 2025 to meet mandates.
In shipping, the sector entered the EU Emissions Trading System on 1 January 2024 with surrender obligations phased in at 40% for 2024 emissions payable in 2025, 70% for 2025 and 100% from 2026; carriers including Maersk have implemented ETS-linked surcharges; FuelEU Maritime started in 2025 with a requirement to reduce the greenhouse-gas intensity of marine energy starting at 2% in 2025 and scaling up through 2050.
Supporters of the exemption argue that taxation alone may shift traffic without cutting emissions, while environmental groups say exemptions weaken price signals and reduce potential revenues from pricing aviation emissions.