Flying towards a sustainable energy system
In the decades ahead, aviation will need to switch from the consumption of fossil kerosene as an energy carrier to sustainable, non-fossil energy carriers. These are biokerosene and e-kerosine, electricity and hydrogen. The government can help to bring about this energy transition by means of policy aimed at making aviation more sustainable and by reducing uncertainty for market players. In doing so, they will also need to remain aware of other government objectives, including ensuring the Netherlands' international accessibility. Balancing goals and policy instruments is complex, according to the KiM study 'Flying towards a sustainable energy system' , which explored the government's role in this energy transition.
(See also the Dutch brochure. More in-depth information can be found in the Dutch background report.)
Physical and sociocultural changes will be called for
The energy transition in aviation calls for physical changes, such as large-scale production of bio- and e-kerosene or the development of hydrogen-powered aircraft and loading or refuelling facilities at airports. It is uncertain to what extent, with what order and at where (within or outside the Netherlands) these changes will take place. There will also be a need for sociocultural changes as new actors enter the arena.
Government policy supports the transition
The government itself cannot bring about the energy transition in aviation – this will be the responsibility of the aviation and energy sector. However, what the government can do is support the energy transition by means of policy. It is already deploying a range of tools to achieve this. For example, the European ReFuelEU Regulation is encouraging energy suppliers at airports to blend 70% renewable energy carriers, such as biokerosene and e-kerosene or hydrogen, into fossil kerosene by 2050. This calls for new production capacity on a wide scale. In addition to the measures that are already available, there is also potential for new ones, such as additional regulation or facilitating policy measures.
Possible reasons for policy action
When the market does not function optimally, the government can intervene. An example of this kind of market failure is that fuel prices do not fully factor in the external costs of carbon emissions.
In addition, a reason for policy may be to give direction to the energy transition and create new markets for this purpose. Provinding direction to the energy transition will involve the government having a vision of how fossil energy consumption in aviation can be phased out and sustainable energy carriers gradually phased in. The government can stimulate a new market for these energy carriers by, for example, ensuring a healthy culture of innovation.
Balancing government goals
In addition to improving sustainability within aviation, there are other objectives in which the government also has a role, including the security of energy supply and ensuring that the Netherlands is properly connected with the rest of the world. But government objectives can conflict with each other. It is up to the government itself to balance these different objectives, but this is a complex process. In this, it helps if the existing government objectives are made concrete and measurable, featuring target values or critical lower or upper thresholds.