Sweden Just Introduced a New Eco-friendly Aviation Tax

Sweden introduced a new aviation tax, effective this month, intended to offset the industry’s carbon footprint. The fee ranges from $7 to $49 per passenger, depending on the flight's destination. According to a study published in the Swedish newspaper Dagens Nyheter, over half of Swedes surveyed were in the favor of the new tax.

Writing in Dagens Nyheter, Climate Minister Isabella Lovin cited the “sharp increase in air travel” as the reason for the tax. The aviation industry produces from 3% to 8% of the world's emissions, according to the GAO

Sweden's government expects the tax to lead to 450,000–600,000 fewer airline passengers per year, Business Insider Nordic reported. While it could offset Sweden's emissions, it may simply shift flights rather than eliminate them: The new tax will likely cause some airlines to reroute their flights to neighboring countries like Denmark in order to avoid the fee, The Local reported.

Analyst Jacob Pedersen of Danish bank Sydbank said the tax will be good for Danish aviation, as airlines could avoid Sweden and Norway, which now both have similar taxes.

“My best guess is that Denmark will see a positive effect without us really having to do anything,” he said, according to The Local.

The belief that airlines will avoid Sweden due to the tax isn't just rumor: Norwegian Air said this week it has already canceled at least one route in response to the tax.