A new study by the German Economic Institute (IW) and IW Consult, commissioned by Lufthansa Group, compares aviation with other hard-to-abate sectors and examines whether the current EU climate policy framework adequately addresses the sector’s unique decarbonization challenges.
Presentation of the new IW study: EU Climate Policy – what does it mean for EU aviation competitiveness?
Institut der deutschen Wirtschaft (IW)
A new study by the German Economic Institute (IW) and IW Consult, commissioned by Lufthansa Group, compares aviation with other hard-to-abate sectors and examines whether the current EU climate policy framework adequately addresses the sector’s unique decarbonization challenges.
Background
The European Union’s climate protection goals necessitate a profound transformation across all economic sectors, including the aviation industry, which is particularly challenging to decarbonize. While sustainable aviation fuels (SAF) and new propulsion technologies hold long-term potential for reducing emissions, aviation remains dependent on fossil fuels in the medium term. Policy measures of the EU’s Fit For 55 package, such as the EU Emissions Trading System (ETS) and increasing SAF quotas (ReFuel EU Aviation Regulation), aim to promote the use of these more climate-friendly alternatives. However, these measures result in international competitive disadvantages for European airlines and harbor the risk of carbon leakage.
Study overview
The study provides a comparative analysis of the impact of EU climate policy measures on different hard-to-abate sectors. It assesses sector-specific risks related to EU climate policy based on the following criteria: decarbonization potential, CO₂ and energy intensity, competition intensity, and carbon leakage risks. The sectors are classified into high, medium, or low exposure to these risks.
Building on these findings, the study proposes tailored climate policy instruments for the aviation sector, focusing on measures that would enhance decarbonization capacity, reduce CO₂ and energy intensity, and mitigate carbon leakage risks. The economic impact of these recommendations is assessed, considering each policy’s effect, its addressees, technology neutrality, and potential conflicts and interactions. Political feasibility is also examined based on jurisdictional level, financing, complexity, and governance.
When?
Tuesday, 23 September 2025
11:00 to 12:00 h
Where?
Representation of the State of North Rhine-Westphalia to the European Union in Brussels
Rue Montoyer 47
1000 Brussels, Belgium
Preliminary agenda:
11:00 – 11:05: Opening remarks | Sandra Parthie (Head of the IW Brussels Liaison Office)
11:05 – 11:20: Presentation of key findings from the new IW study | Malte Küper (Senior Economist for Energy and Climate Policy)
11:20 – 11:55: Open Q&A session with guests
11:55 – 12:00: Concluding remarks | Dr. Thilo Schaefer (Head of Digitalisation and Climate Action Research Unit)
12:00: Networking and light lunch
The full study will be published on the day of the event. A summary of the main findings will be shared with all guests on site.
Full Report DE: EU-Klimaschutzpolitik in ausgewählten Wirtschaftssektoren
Full Report EN: EU Climate Policy in Selected Economic Sectors
Summary: EU Climate Policy in Selected Economic Sectors
Executive Summary: EU Climate Policy in Selected Economic Sectors
„Grünes Schrumpfen ist eine Dystopie“
Wirtschaftswachstum und Klimaschutz gelten manchen als unvereinbar, Kritiker fordern ein bewusstes Schrumpfen der Wirtschaft. IW-Direktor Michael Hüther erklärt im Streitgespräch mit der Journalistin Ulrike Herrmann im Deutschlandfunk, warum er auf technologischen Fortschritt setzt.
IW
Industrietransformation im laufenden Betrieb
Energieintensive Branchen stehen zwischen schwacher Nachfrage, globalen Überkapazitäten und handelspolitischen Hindernissen. Obendrauf muss der klimaneutrale Umbau gelingen – bislang massiv erschwert durch fehlende Voraussetzungen. Die Stahlindustrie zeigt das besonders deutlich.
IW