EU Court Overturns Exclusion of Private Jet Manufacturing from Green Investment List
EU Court Ruling on Sustainable Finance Taxonomy
June 24 (Reuters) - The manufacture of private jets cannot be excluded from a list of activities deemed to be environmentally sustainable, the European Union's second-highest court said on Wednesday, annulling a decision by the European Commission.
Background: Sustainable Finance Taxonomy
• The contested list, the sustainable finance taxonomy, is intended to provide investors with an overview of green investments.
Commission's 2023 Decision
• The Commission in 2023 excluded aircraft for private or commercial business aviation from the list, based on CO2 emissions per passenger kilometre compared with other modes of transport.
Legal Challenge by Dassault Aviation
• That decision was contested by French planemaker Dassault Aviation, which called it unlawful.
Court's Reasoning and Findings
Assessment of Alternative Transport Modes
• The EU's General Court said that other modes of transport could not necessarily be seen as low-carbon alternatives because private jets have specific characteristics in terms of flexibility, speed and connectivity.
CO2 Footprint Considerations
• It also said that the CO2 footprint related to the operation of aircraft, not the manufacturing of them.
Potential for Sustainable Fuel
• The court noted that the Commission had failed to take into account that private jets could be flown on sustainable fuel.
Next Steps
• The Commission can appeal the ruling within two months.
(Reporting by Bart MeijerEditing by David Goodman)
