EU court annuls rule blocking bizav from Green Finance Framework
A European Union court has struck down a provision that excluded business aviation aircraft manufacturing from the EU Taxonomy for Sustainable Finance, the bloc’s framework for classifying sustainable investments.
The General Court annulled Section 3.21 of the Climate Delegated Act, finding that the European Commission had not adequately justified the exclusion. In its reasoning, the court noted the Commission had failed to demonstrate that other transport modes constituted credible low-carbon alternatives to business aviation in all cases, and that the criterion used related to aircraft operation rather than their manufacture – the activity being regulated.
The European Business Aviation Association (EBAA) had intervened in the case in support of plaintiffs including aircraft manufacturers Dassault Aviation and Daher.
“The court’s judgment marks a significant and welcome development,” EBAA said in a statement. “It restores a more evidence-based and technology-neutral approach to sustainable finance rules.”
The General Aviation Manufacturers Association (GAMA) also welcomed the judgement.
“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. 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,” said Kyle Martin, GAMA’s vice president for European Affairs.
The ruling means business aviation aircraft manufacturers could now qualify for access to sustainable finance under the EU Taxonomy, opening up green investment channels previously unavailable to the sector.
EBAA argued the original exclusion was unjust given the sector’s track record on innovation, including more efficient aircraft design, advanced materials and lower-emission propulsion.
Business aviation operators are also participating in sustainable aviation fuel uptake under the ReFuelEU Aviation regulation.
The association said the judgment sends a broader signal that EU sustainable finance rules must remain “evidence-based, proportionate and aligned with the actual characteristics of the activity being regulated.”
