Brussels

Associations welcome Court decision on EU Taxonomy

The General Court of the European Union has delivered a significant victory for Europe’s business aviation sector, annulling provisions of the EU Taxonomy for Sustainable Finance that excluded the manufacture of business aviation aircraft from the framework’s scope.

The ruling has been welcomed by both the General Aviation Manufacturers Association (GAMA) and the European Business Aviation Association (EBAA), which said the judgment restores a more balanced, evidence-based and technology-neutral approach to sustainable finance policy.

The Court annulled Section 3.21 of the Climate Delegated Act, which had effectively excluded aircraft intended for private or commercial business aviation from qualifying under the EU Taxonomy. In its judgment, the Court found that the European Commission had failed to demonstrate that alternative transport modes necessarily constituted credible low-carbon substitutes for business aviation in all cases. It also noted that the criteria used by the Commission related to the operation of aircraft rather than their manufacture.

For GAMA, the ruling represents an important recognition that sustainable-finance policy must be founded on legally sound, equitable and technology-neutral criteria. The association has argued for more than five years that business aircraft manufacturing should not be assessed through operational metrics that are not recognised in EU law, nor through assumptions that other transport modes are inherently lower-carbon alternatives.

“GAMA welcomes today’s ruling by the General Court of the European Union as a significant rebalancing step towards a fair and evidence-based sustainable finance framework for aviation,” said Kyle Martin, GAMA’s Vice President for European Affairs. “Business aviation manufacturers are committed to reducing emissions and advancing innovation. Funding criteria for this transition should be assessed on a technology-neutral and equitable basis that is consistent with industrial, technological and market realities.”

EBAA, which intervened in support of aircraft manufacturers Dassault Aviation and Daher during the proceedings, described the judgment as a welcome development for a sector that has long been at the forefront of aviation innovation.

Both associations emphasised that business aviation is actively investing in decarbonisation. Efforts include increasing the availability and use of Sustainable Aviation Fuel (SAF), improving aircraft efficiency through advanced materials and aerodynamic technologies, and developing low- and zero-emission propulsion systems.

The organisations argued that the sector plays an important role in European connectivity, industrial competitiveness and technological innovation, while contributing to broader sustainability goals through initiatives such as ReFuelEU Aviation.

Looking ahead, GAMA and EBAA said they are ready to engage constructively with the European Commission and policymakers on an updated taxonomy framework that supports investment in aviation innovation and accurately reflects the contribution of all parts of the aerospace sector to Europe’s climate and competitiveness objectives.