Evaluating Carbon Tax in Civil Aviation Sector

– By Gayathri Gireesh* and Pooja Sanjith**

 

Introduction

Carbon tax is based on the principle of “Polluter Pays” and is imposed on the consumption or production of carbon-intensive fuels, such as coal, oil, and gas. The targeted objective of this tax is to reduce carbon emissions through implications by discouraging the use of these fuels. The tax rate is based on the carbon content of the fuel, proportionate with higher rate for higher emission carbon dioxide (CO2). The revenue generated from this tax can be used to fund mitigation measures of climate change such as renewable energy, public transport, and energy efficiency programs.  It covers mainly CO₂ emissions, but can also apply to other greenhouse gases such as methane or nitrogen oxides. In certain aspects it reflects the social cost of carbon and is viewed as an essential policy requisite to limit carbon emissions. India shifted  significantly from a carbon subsidization regime to most importantly carbon taxation regime, from a negative price to an implicit positive price on carbon emissions.[1] India’s updated Nationally Determined Contribution  has made a bold commitment  to reduce Emissions Intensity of its GDP by 45 percent by 2030.The expansion of international traffic my lead to  the aviation  sector emissions elevating the carbon budget to a staggering 27% by 2050, if  it is left unregulated.[2]With about 2.5% of global CO₂ emissions attributed to civil aviation, other related factors, especially, high altitudes  assuming contrails, ozone formation resulting from NOₓ emissions-raise the climate impact considerably.[3] Through such actions, a radiative forcing multiplier of 1.9 to 2.0 is created, results in the increasing  of temperature amplification considerably.[4] Yet, aviation is often subsumed with other  national climate plans.

Facets of Climate Action in India.

Article 21 of the Constitution guarantees the right to a clean and healthy environment, thereby constituting a constitutional foundation for regulating high-emission sectors like aviation.[5]In India, pollution laws apply to sectors like power and industry, whereas agriculture remains outside any sectoral emission regulation framework such as the Air Act, 1981.[6] In contrast, a carbon tax; is imposed on the basis of the carbon content of fuel and is a type of market-based instrument that internalizes climate externalities.[7] Such an approach is in accordance with the “Polluter Pays Principle,” as accepted by the Indian Supreme Court in Vellore Citizens Welfare Forum v. Union of India.[8]

The principle is based on the idea of ubi emolumentum, ibi onus (the one who takes advantages of an action shall bear the disadvantages related to it) thereby placing the onus directly on the polluter to do whatever is required. This principle in its application has several advantages:

1. It would impress on potential polluters to be accountable for the  consequences of their actions, perhaps then reinforcing a determination never to let this happen again.
2. An examination of the damage might lead to new technical ideas about how such damage shall have to be avoided in the future.
3. Making the polluter directly responsible would obviate the need to calculate the damage precisely in monetary terms. [9]

Returning to the global scenario, carbon taxes are gaining momentum. Forty countries, at least, operate some form of carbon pricing, with aviation being included in many countries.[10] India has a marginal aviation emission level of nearly 25 million tonnes of CO₂ per year; nearly double is projected for 2030.[11] The aviation industry needs incentive driven action plan to decarbonize SAF (Safe Aviation Fuel) or upgrading of fleets as options in their activities Further exploring whether carbon-taxation in aviation in India and international scenario would be legally permissible, economically sensible, and environmentally essential. It goes into the full-scale framework upon international case studies, the Indian constitutional law, economic modelling, and climate data.  Aviation emissions are particularly harmful, unlike the ground-based transport system, the aircrafts often emit CO₂, NOₓ, water vapor, and particulate matter at high altitudes, where their warming would effect is greatly magnified.[12] Though air transport may ostensibly be a smaller contributor to emissions, the radiative forcing factor doubles its real climate effect.[13] The Technological decarbonization variance of aviation is limited.

Long-range electric planes are not commercially viable because of the battery weight limitations and energy density problems.[14]Meanwhile, SAFs or Sustainable Aviation Fuel, cut 80% of life-cycle emissions but comprise less than 1% of all aviation fuel due to cost and lack of availability.[15] Hence, the probability of carbon tax at this juncture might s as an essential tool. In contrast to volatile and highly administrative cap-and-trade schemes, carbon taxes may provide price certainty and price transparency.[16]Airlines can include these costs in their planning, and governments can use the revenues to support climate solutions.

Carbon Tax Framework: India and EU

India currently doesn’t have direct taxation on carbon emissions on aviation turbine fuel (ATF). However, it applies implicitly through coal cess of ₹400 per tonne as of 2016, along with excise duties on petrol and diesel that amount to over US$140 per ton of CO₂.[17]Additionally, there is a pilot emissions trading scheme that varies by different state which is not particularly designed for environmental outcomes. Although ATF is exempt from these fees, the windfall tax imposed on fuel exports shows that India can tax aviation-related fuel under certain fiscal conditions. From 2027, India will also participate in the mandatory phase of ICAO’s CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation), which requires airlines to buy emissions offsets above 2019 levels, acting as an indirect carbon pricing mechanism.[18] In contrast, the European Union includes aviation in its Emissions Trading System (ETS). Since 2012, flights within the European Economic Area must monitor, report, and surrender emission allowances. The EU also plans to update the Energy Taxation Directive to remove exemptions on aviation fuel, moving towards direct carbon taxation.[19] In 2012, countries including India legally opposed the EU’s aviation tax. India’s aviation ministry and several domestic carriers challenged their inclusion in the EU ETS based on sovereignty concerns, though later cooperative methods were pursued.[20] Therefore, while India’s policy only covers voluntary participation in international schemes, the EU has established a legally enforceable cap-and-trade system with future direct taxation plans. India’s upcoming involvement in CORSIA could pave the way for stronger domestic measures.

Global Carbon Tax Practices in Aviation

Across the globe, several countries have filed carbon taxation, or equivalents, in civil aviation. Each country’s application is structured and based upon its own policies and legal obligations.

1. European Union (EU ETS): The European Union’s Emission Trading Scheme (EU ETS), placed aviation emissions on the market in 2012 when the EU overhauled and amended Directive 2003/87/EC through Directive 2008/101/EC.[21] The rules around the legislation initially captured all flights to and from the EU, however opposition from multiple countries led the EU to remove any flights from outside the EEA, prior to implementing the EEA as a cap-and-trade structure. Airlines are required to monitor, report and surrender allowances, for CO₂. In 2020 in total, the EU ETS system covered about 25 million tonnes of CO₂ emitted from aviation. The European Court of Justice affirmed the legality of this inclusion in Air Transport Association of America v. Secretary of State for Energy and Climate Change, finding that the EU ETS did not contradict any of the international aviation treaties.
2. France – Eco-Contribution Tax : In 2020 France introduced an “eco-contribution” where a tax applies to all outbound flights with levels varying from €1.50 (economy      short haul) to €18 (business class long haul). The revenues are directed towards green transport, primarily rail transport. France also expects that, under the Energy Transition Law, all commercial aviation will incorporate a blend of 1% SAF with a plan to rise to 2% by 2025[22].
3. United Kingdom – Air Passenger Duty (APD) : Introduced in 1994, the United Kingdom’s Air Passenger Duty is not directly a carbon tax, but similar to the Former California Cap and Trade Program it provides the same type of fee for someone based on where they fly from and their seat class. The rates for the air passenger duty were updated in 2023 to be more reflective of emissions intensity, so on average, business class and long-haul rates were increased to be a higher amount[23]
4. Switzerland – CO₂ Act : Switzerland has a carbon levy on fossil fuels under the CO₂ Act, which generally includes  fossil fuel levy for aviation fuel indirectly. Airlines must offset emissions from aviation fuels through government-approved schemes. The Swiss Federal Office for the Environment’s report in 2022 accounted for over CHF 120 million collected as emissions related contributions from air travel (Swiss Federal Office for the Environment, 2023).[24]
5. ICAO – CORSIA : The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) launched by ICAO in 2016, aims to achieve carbon neutral growth from 2020 onwards, providing a framework that obliges airlines to offset emissions related to the growth in emissions using certified offset units (D’Souza, 2022). CORSIA has been critiqued for not being enforceable, being based on voluntary compliance with few requirements and lower quality offset units, which may not necessarily lead to real emission reductions (Regulator, 2021).[25] These examples highlight that there is a market of viable and effective carbon pricing options in the aviation sector. The variety of carbon pricing mechanisms also indicates there is still scope for legal innovation in carbon pricing that is dependent on each country’s circumstances.

Carbon Tax and  Sustainable Aviation Fuel (SAF) Quotas

The two most prominent policy tools for aviation decarbonisation, outside of environmental rules, are carbon tax or SAF blending mandates. Each option has different advantages and disadvantages.

Carbon Tax: A carbon tax sets a uniform price for each tonne of CO₂ emitted. This gives price certainty, encourages a more efficient operation, and nets public revenue. Airlines operating under a carbon tax have shown better fuel efficiency and investments to trim out inefficient routes, such as in Sweden or France.[26] A moderate tax, at say $50/tonne CO₂) is expected to increase ticket prices by only 1.5% – 2%, with an expected base volume of billions to fund the aviation decarbonisation effort.

SAF quotas: Sustainable aviation fuels (SAFs) can help to reduce life-cycle emissions by upwards of 80% dependent on the feedstock39. The European Union’s ReFuel EU Aviation Initiative proposes[27], 2% SAF blending in 2025, and a subsequent step increase to 6% by 2030 and 70% by 205040. SAF offer limited supply globally representing less than 0.2% of global aviation fuel supply in 2022 and SAF costs of 2-5 times more than fossil jet fuel. In a comparative analysis, Li et al’s 2023[28] study looked at both the emissions and welfare consequences of carbon taxes and SAF quotas amongst ten different economies. They found that, SAF mandates are likely to be more effective at reducing emissions when oil prices are low and secondly, Carbon taxes are better for economic welfare when SAF prices are high and lastly ASB hybrid tool is optimal at reducing emissions and for economic welfare.

The Netherlands has implemented this ASB tool hybrid model by introducing a phased in carbon tax on a per flight basis also a SAF quota simultaneous implementing producer subsidy and SAF quotas. India could implement the same approach, by starting to tax carbon emissions on dense high-carbon domestic routes also to readily implement 1–2% SAF blending requirement, and finally to Plug revenue in country made SAF and producer import subsidies. The dual track option prioritizes reducing emissions targets while ameliorating the cost share burden for Airlines and passengers.

Sustainability Impact of Carbon Tax

Carbon taxation is applied to serve two main purposes.

• It reduces emissions while generating funds for clean technology.
• Revenue from aviation carbon taxes can be used for projects like sustainable aviation fuel (SAF) production, airport electrification, and green research and development.

In countries like Sweden and the Netherlands, such taxes have significantly contributed to climate finance. In India, a modest carbon tax per passenger on popular routes like Delhi-Mumbai could raise over ₹1,000 crore each year. IMF estimates suggest that a $40 per tonne CO₂ tax would only increase ticket prices by less than 3%, making it politically viable. Moreover, carbon taxes have been shown to change consumer behaviour. Transparent pricing based on ticket emissions encourages travellers to choose fewer polluting options or fly less often. Pricing schemes like CORSIA and the EU ETS aim to account for the environmental costs of aviation. For India, this is a significant change, especially since civil aviation emissions doubled from 2012 to 2022, yet remain outside specific carbon regulations.[29] Studies demonstrate that carbon pricing, whether through a carbon tax or offsetting requirements, promotes operational efficiency, route optimization, and investment in SAFs. The FERDI working paper indicates that even a modest tax on aviation fuels can produce important climate finance, particularly in developing countries.[30] SAFs can reduce lifecycle emissions by up to 80% when scaled, but they currently face challenges related to cost and supply.[31] A carbon tax on ATF in India, if revenues are directed to SAF production, could enhance both environmental and economic outcomes. According to a ScienceDirect study,[32] carbon pricing can increase consumer awareness of greener airline practices, especially if ticket prices reflect emissions intensity. India could incorporate this through dynamic ticket labelling or eco-classification incentives.

Etihad Airways Greenwashing : Analysis

In 2023, Etihad Airways ran ads around the world saying that by 2050, they would have zero carbon emissions and that they led in eco-friendly flying. But the group Flight Free Australia filed a complaint to the Australian Competition and Consumer Commission (ACCC) represented by the Environmental Defenders Office (EDO).^[33] They said Etihad’s ads tricked people by making it look like their green goals were already reached, making it seem that flying Etihad was good for the planet. In the UK, the Advertising Standards Authority (ASA) also looked into the ads. They ended up banning them for being misleading (ASA Ruling No. A23-1162561, 2023).^[34] This part bans making false claims in trade or business.^[35] Green lies, called “greenwashing,” are being looked at more, especially under section 18, which bans false eco-talk that sways buyers. The ASA in the UK follows the rules of the Committee of Advertising Practice (CAP) Code, mainly Section 11, about eco terms in ads^[36]. The ASA found that Etihad’s eco ideas lacked proof, missing key info like how they offset carbon and what their real emissions were (Etihad Airways ASA Ruling, 2023). The CAP Code says ads should not stretch the truth on green points and should stick to strong proof. Both stressed that “net-zero” terms must show real and clear steps, not just far-off dreams.

The ASA’s choice to act against Etihad focused on two ideas. Firstly, they showed the airline as eco-friendly. Second, the ads made it seem that Etihad’s daily work was already hitting net-zero targets. The ads had lines like “Environmental Advocacy” and “Flying Reimagined” with big, bold nature shots.^[37] This gave the idea that flying Etihad didn’t hurt the planet. The ASA said this was false since Etihad mostly used fossil fuels and barely used any Proven Eco Aviation Fuels (SAFs) or had real offsets. Plus, the ASA said Etihad’s carbon offset details were too vague, covering what offsets they used and who checked them. The ASA noted, “talk about green wins must be checkable, and big dreams must be clearly marked as just dreams” (Etihad ASA Ruling, 2023). They stopped the ads and showed that airlines can’t hide behind vague eco promises to cover up their real environmental cost. This case also underlined that green messages should think about how buyers see them, especially those who care about the planet.

Etihad’s case is part of a wider trend where airlines face legal heat for overdoing their green points. The ASA had already stopped similar ads from Lufthansa and Air France for wrongly saying they had zero carbon (ASA Rulings A23-1172879 and A23-1186661, 2023)^[38]. The European Commission is also pushing the Green Claims Directive, which will make sure all green terms in marketing have science behind them and are checked by others (European Commission, Green Claims Directive, 2023)^[39]. The Etihad case key as it mixes consumer law with climate duty in flying. This field often stays out of such checks due to hard emission math. The case sets a pattern for how places work together on these issues. Though not a court decision yet, the ASA’s choice has big weight in the UK and might change how businesses act. Legally, it makes clear that being eco-friendly is not just policy but also about buyers’ rights and business duty. If the ACCC goes to court, Etihad could face big fines under section 224 of the Competition and Consumer Act, which allows over AUD 10 million penalties. Moreover, this case pushes for strong legal moves in places like India, where airlines and other polluters keep marketing “green” moves without checks or real proof (EDO, 2023).^[40] Etihad Airways greenwashing case sets a world rule for mixing environmental law, consumer rights, and business duty in flying. By calling out unclear green claims in ads, it strengthens laws that hold polluting fields responsible for their climate promises.

Indian Legal Framework and Regulatory Gaps

India is one of the fastest growing aviation markets in the world, however, it lacks any specific legal framework to regulate, or price carbon emissions in the civil aviation sector. This regulatory gap is inconsistent, and in some cases directly contradictory, to India’s international obligations under various environmental treaties and commitments to meet its national sustainable development goals.

The Civil Aviation Act, 1982 [41] mainly deals with safety, air worthiness and licensing to operate an aircraft. It has no mention of environmentally sustainable use of aviation nor emission controls. The Aircraft Rules, 1937, made under the provisions of the Act have no reference to emissions, noise or environmental reporting obligations.[42] India is a signatory to ICAO’s CORSIA, having opted in on a voluntary basis for the pilot phase in 2021.[43] The participation however still remains at the international flights stage and there is no legislative instrument to require compliance or incorporate CORSIA as enforceable Indian law. The Environment (Protection) Act, 1986, permits the Central Government to set standards for environmental quality and to ban or regulate activities that cause pollutive behaviour. However, it has no provisions for aviation sector. The Air (Prevention and Control of Pollution) Act, 1981, addresses industrial emissions and its definition of “air pollutant” does not specifically cover aviation turbine fuel (ATF).[44]

The judiciary has been at the forefront of ensuring environmental rights.[45] In M.C. Mehta v. Kamal Nath, the court laid down a new doctrine, the “public trust doctrine”, where it presumed the state was responsible for the protection of National Resources[46].Nevertheless, despite emphasizing comprehensive doctrines, no case has directly assumed the carbon footprint of aviation. This silence in the case law reflects a parallel silence in the legislative framework. Even authorities like National Green Tribunal (NGT) are allowed to take suo moto cognizance under the NGT Act, 2010 have chosen not to adopt a position on aviation emissions. Given these omissions, it is recommended to amend the legislation in Civil Aviation Act or develop a Green Aviation Regulation that integrates provisions related to emissions monitoring, carbon pricing, and SAF (sustainable aviation fuel) quotas into India’s future legal framework.

Real-Time Emission Data and Growth of Aviation in India

India is likely to be the third largest civil aviation market in the world by 2030 with over 400 million air passengers per year. However, emissions data for the aviation sector continues to be fragmented and largely unpublished.  The International Energy Agency (IEA) reported that India’s CO₂ emissions from aviation applications have increased from 12.8 million tonnes in 2010 to 25.4 million tonnes in 2022, effectively doubling over the twelve-year period. If emissions continue to rise at the observed rate of 9.0% year-on-year, it is estimated that annual emissions could exceed 60 million tonnes by 2035, representing a 360% increase over the next 25-year period[47]. Unfortunately, despite the alarming growth in aviation emissions, the Directorate General of Civil Aviation (DGCA) has not made it mandatory for airlines to report greenhouse gas (GHG) emissions in India. Our country’s Biennial Update Report to the United Nations Framework Convention on Climate Change (UNFCCC) contains no further segmentation of aviation emissions beyond aggregate fuel consumption data.

In contrast to the above glaring omissions, the European Aviation Environmental Report includes very detailed data related to route, aircraft type and emissions intensity, which enables more informed policy and target setting. The EU Emissions Trading System (ETS) with respect to compliance in aviation is high (greater than 99.5%) as a result of strong regulations and eligibility based on advanced data.[48]

There are also areas where India could improve its reporting in aviation emission data such as, Mandatory emissions reporting requirements for all airlines to submit annual emissions data, Create an open-access emissions database and emission reports, which is maintained from DGCA or MoEFCC and to utilize data to establish carbon intensity benchmarks for types of aircraft and routes. Another key innovation is carbon labelling on flight tickets, providing the carbon footprint per passenger on the ticket. Carbon labelling has been piloted in the EU, and has been shown to modify consumer behaviour, whereby travellers, when there is an option, will choose lower emission alternatives. Without transparent, real-time data, it is impossible to effectively enforce either carbon taxes or SAF quotas. A digital emissions tracking regime will be the first stage in creating India’s green aviation future.

Conclusions

To establish a strong and enforceable carbon taxation framework for civil aviation, India should adopt a layered strategy involving legal reforms, institutional changes, fiscal innovation, and public engagement. A key step is revising the Civil Aviation Act of 1982 to include environmental responsibilities such as emissions monitoring, sustainability audits, and fuel efficiency reporting by airlines.[49]This approach mirrors the European Union’s Directive 2008/101/EC, which integrated aviation into the EU Emissions Trading System and created a solid legal framework for airline carbon compliance. A pilot carbon tax program can be launched on busy domestic routes like Delhi–Mumbai and Bengaluru–Hyderabad, using a per-passenger fee linked to aircraft fuel efficiency and flight distance. The OECD suggests that a carbon tax of USD 50 per ton of CO₂ is both economically feasible and environmentally effective, raising ticket prices by only 1.5 to 2.3% while encouraging fuel efficiency.[50]Tax revenue should go toward a Green Aviation Fund, managed jointly by the Ministry of Civil Aviation and the Ministry of Environment, Forest and Climate Change. This fund would support SAF production, airport electrification, green ground operations, and research and development for hybrid or hydrogen aircraft.[51] The International Energy Agency advocates for public subsidies for SAF to promote widespread adoption. Institutionally, the Directorate General of Civil Aviation should have a dedicated Environmental Compliance Cell to oversee airline disclosures, enforce sustainability standards, and provide annual reports to Parliament.[52] On the consumer side, initiatives like carbon labelling on tickets, green airline rankings, and discounts for purchasing carbon offsets can help promote environmentally conscious choices. Ultimately, India could lead a SAARC “Clean Skies Pact” for regional harmony, preventing carbon leakage and encouraging collective climate accountability in South Asia.[53] In conclusion, carbon taxation in civil aviation is no longer just an idea, it has become an urgent regulatory necessity. If aviation emissions go unchecked, they could account for nearly 27% of the global carbon budget by 2050.[54] Countries must act quickly to include environmental costs in air travel prices. For India, the situation is even more pressing. As civil aviation grows at a rapid pace, its emissions are projected to triple by 2035, yet it remains absent from the country’s carbon pricing framework.[55] This analysis indicates that a carbon tax, particularly when paired with SAF mandates and emissions monitoring, offers a comprehensive solution. This strategy aligns with the constitutional “Polluter Pays” principle and the right to a clean environment stated in Article 21.[56] Successful global examples like the EU ETS and France’s eco-contribution demonstrate carbon pricing’s effectiveness in lowering emissions, fostering innovation, and funding green infrastructure.[57] Importantly, India already implements carbon taxation in its energy and fuel sectors, as shown by the Clean Energy Cess.[58] Expanding this practice to aviation is both doable and legally sound. With established judicial precedents and policy frameworks, the focus should shift from “if” to “how soon” India will incorporate aviation into its climate governance strategies.

—

*Gayathri Gireesh, Consultant Advocate, CEERA NLSIU

**Pooja Sanjith, Research Intern  BBA LLB 2^nd Semester,  KLE Law College

[1]Press Information Bureau, Government of India, Ministry of Finance, From Carbon Subsidy to Carbon Tax: India’s Green Actions (Feb. 27, 2015),   https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=116058.

[2]  United Nations Framework Convention on Climate Change, Aviation Industry Needs to Green Operations and Prepare for Climate Impacts: ICAO Report (Sept. 10, 2025), https://unfccc.int/news/aviation-industry-needs-to-green-operations-and-prepare-for-climate-impacts-icao-report.

[3] Intergovernmental Panel on Climate Change, Special Report: Aviation and the Global Atmosphere (1999), https://www.ipcc.ch/site/assets/uploads/2018/03/av-en-1.pdf.

[4]D. S. Lee et al., The Contribution of Global Aviation to Anthropogenic Climate Forcing for 2000 to 2018, 244 Atmospheric Environ. (1994) 117834 (2021), https://pubmed.ncbi.nlm.nih.gov/32895604/.

[5] India const. art. 21

[6] The Air (Prevention and Control of Pollution) Act, 1981

[7] Organisation for Economic Co-operation and Development, Effective Carbon Rates 2021: Pricing Carbon Emissions Through Taxes and Emissions Trading (2021), https://www.oecd.org/en/publications/effective-carbon-rates-2021_0e8e24f5-en.html.

[8] Vellore Citizens Welfare Forum v. Union of India, AIR 1996 SC 2715.

[9] Tarcísio Hardman Reis, Compensation for Environmental Damages Under International Law the Role of the International Judge, 17 Energy and Environmental Law & Policy Series Supranational and Comparative Aspects (2011).

[10] World Bank, State and Trends of Carbon Pricing 2023 (2023), https://openknowledge.worldbank.org/handle/10986/39796.

[11] International Energy Agency (IEA), Aviation, IEA Energy System, https://www.iea.org/energy-system/transport/aviation (last visited Sept. 19, 2025).

[12] NASA, Contrail Research, 2022, para. 3.

[13] European Commission, Reducing Emissions from Aviation, EU Climate Action (Sept. 2025), https://climate.ec.europa.eu/eu-action/transport-decarbonisation/reducing-emissions-aviation_en.

[14] Council Directive 2003/87/EC, art. 25a, 2003 O.J. (L 275) 32.

[15] Swiss Federal Office for the Environment, Carbon Capture, Removal and Storage: Legislation, (Aug. 20, 2025), https://www.bafu.admin.ch/bafu/en/home/topics/climate/info-specialists/co2-capture-removal-storage/legislation.html.

[16] Norwegian Tax Administration, Aviation Tax Guide, 2023

[17] Ian W.H Parry et al., Still Not Getting Energy Prices Right: A Global and Country Update of Fossil Fuel Subsidies, 2021 IMF Working Paper (2021).

[18] International Civil Aviation Organization (ICAO), Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), https://www.icao.int/CORSIA (last visited Sept. 19, 2025).

[19] Simon Black et al., Destination Net Zero: The Urgent Need for a Global Carbon Tax on Aviation and Shipping, 2024 Staff Climate Notes (2024).

[20] Joe Dalton, India revolts over EU carbon tax on airlines, International Tax Review (Mar. 23, 2012), https://www.internationaltaxreview.com/article/2a68rfy5bw2ycq13xdpv7/india-revolts-over-eu-carbon-tax-on-airlines.

[21] Case C-366/10, Air Transport Association of America and Others v. Secretary of State for Energy and Climate Change, 2011 E.C.R. I-13833 (C.J.E.U. Dec. 21, 2011)

[22] French Energy Transition Law, art. L100-4, Legifrance, https://www.legifrance.gouv.fr/ (last visited Sept. 19, 2025).

[23] Finance Act 1993, c. 34 (UK), as amended by Finance (No. 2) Act 2023, c. 39 (UK).

[24] Viktoria Noka et al., Capacity Building to Facilitate Implementation of the Effort Sharing Legislation, with Focus on Ex-post Evaluation and Policy Lessons Learned: Case Study on the CO2 Tax in Switzerland 1–18 (2021), Öko-Institut, https://www.oeko.de/fileadmin/oekodoc/ESL_FR_A1e_CS_CrossCutting-CO2tax.pdf.

[25] International Civil Aviation Organization, CAEP Analyses in Support of 2022 CORSIA Periodic Review: Executive Summary (2022), https://www.icao.int/sites/default/files/environmental-protection/CORSIA/Documents/CORSIA%20Periodic%20Review/CAEP_Analyses-in-support-of-2022-CORSIA-periodic-review_Exec-Summary.pdf.

[26] Swedish Ministry of Infrastructure, Aviation Tax Results, 2023.

[27] Regulation (EU) 2023/2405 of the European Parliament and of the Council of 18 October 2023 on ensuring a level playing field for sustainable air transport (ReFuelEU Aviation), 2023 O.J. (L 2405) (EU).

[28] J. Li et al., Comparing Carbon Tax and SAF Mandates, 2023 J. Envtl. Econ

[29] Priyanka Saharia & Krishna Raj, The Impact of Civil Aviation Growth on CO2 Emissions in India: Evidence from a Time Series Analysis, ISEC Working Paper 498 (Oct., 2020), https://www.isec.ac.in/wp-content/uploads/2023/07/WP-498-Priyanka-and-Krishna-Raj-Final.pdf.

[30] Alou Adessé Dama et al.,  Taxation of Civil Aviation Fuels as a Source of Financing for Vulnerable Countries, FERDI Working Paper No. 318 (Mar. 2023), https://ferdi.fr/dl/df-zQXz6oQCiWvSwTNkzDCPBY7U/ferdi-wp318-taxation-of-civil-aviation-fuels-as-a-source-of-financing-for.pdf.

[31] Aasheesh Dixit et al., Effectiveness of Carbon Tax and Congestion Cost in Improving the Airline Industry Greening Level and Welfare: A Case of Two Competing Airlines, 100 J. Air Transp. Mgmt. 102182 (2022)

[32] Supra 30

[33] Environmental Defenders Office, Etihad Airways Accused of Climate Greenwashing in Complaint to ACCC, (Mar. 23, 2023), https://www.edo.org.au/2023/03/23/etihad-airways-accused-of-climate-greenwashing-in-accc-complaint/.

[34] Advertising Standards Authority (UK), Ruling on Etihad Airways, Case No. A22-1174208 (Oct. 2022), https://www.asa.org.uk/rulings/etihad-airways-a22-1174208-etihad-airways.html

[35] ACCC, Environmental and Sustainability Claims: What You Need to Know, Jul. 2023.
https://www.accc.gov.au/consumers/advertising-and-promotions/environmental-and-sustainability-claims

[36] ASA UK. The CAP Code: UK Code of Non-broadcast Advertising and Direct & Promotional Marketing. Sections 3.1, 11.1, 11.3. https://www.asa.org.uk/codes-and-rulings/advertising-codes/non-broadcast-code.html

[37] Advertising Standards Authority (UK), Ruling on Etihad Airways, Case No. A22-1174208 (Apr. 2023), https://www.asa.org.uk/rulings/etihad-airways-a22-1174208-etihad-airways.html.

[38] Advertising Standards Authority(UK), Ruling on Lufthansa, Case No. A23-1176498.
https://www.asa.org.uk/rulings/deutsche-lufthansa-ag-a23-1176498-lufthansa.html

[39] European Commission, Proposal for a Directive on Substantiation and Communication of Explicit Environmental Claims (Green Claims Directive), Directorate-General for Environment (Mar. 22, 2023), https://environment.ec.europa.eu/publications/proposal-directive-green-claims_en.

[40] Supra 1

[41] Civil Aviation Act, 1982, c. 16 (UK)

[42] The Aircraft Rules, 1937, Ministry of Civil Aviation, Directorate General of Civil Aviation, India

[43] Supra 24

[44] The Air (Prevention and Control of Pollution) Act, 1981

[45]  In Vellore Citizens Welfare Forum v. Union of India, AIR 1996 SC 2715.

[46] M.C. Mehta v. Kamal Nath, (1997) 1 SCC 388.

[47] International Energy Agency, CO2 Emissions in 2023 – Analysis (2024), available at https://www.iea.org/reports/co2-emissions-in-2023.

[48] European Union Aviation Safety Agency (EASA), European Aviation Environmental Report 2022 (2022), available at https://www.easa.europa.eu/sites/default/files/eaer-downloads/230217_EASA%20EAER%202022.pdf.

[49] Ministry of Civil Aviation (MoCA), Draft National Air Sports Policy (NASP) 2022, available at https://www.civilaviation.gov.in (last visited Sep. 19, 2025)

[50] Organisation for Economic Co-operation and Development (OECD), Tax Policy, https://www.oecd.org/en/topics/tax-policy.html (last visited Sept. 19, 2025)

[51] Ministry of Finance, Union Budget 2022-23, available at https://www.indiabudget.gov.in/ (last visited Sept. 19, 2025).

[52] EU Aviation Environmental Report (2022) https://www.easa.europa.eu/en/document-library/general-publications/european-aviation-environmental-report-2022

[53] Ministry of External Affairs, Government of India, https://www.mea.gov.in (last visited Sept. 19, 2025).

[54] International Energy Agency (IEA), Tracking Aviation 2023, https://www.iea.org/reports/tracking-aviation-2023 ,

[55] Ministry of Environment, Forest and Climate Change (MoEFCC), India’s Third Biennial Update Report to UNFCCC, 2021, https://unfccc.int/documents/309045 ,

[56] Vellore Citizens Welfare Forum v. Union of India, (1996) 5 SCC 647, para 10–12.

[57] European Union Aviation Safety Agency, European Aviation Environmental Report 2022, https://www.easa.europa.eu/en/document-library/general-publications/european-aviation-environmental-report-2022 (last visited Sept. 19, 2025).

[58] Ministry of Finance, Government of India, Union Budget 2021-22: Clean Energy Cess, Part B, Tax Proposals, https://www.indiabudget.gov.in (last visited Sept. 19, 2025)

 

Image sourced from: https://www.phocuswire.com/Aviation-industry-invests-in-alternative-fuel-to-reach-climate-targets