How Europe Can Lead the Next-Generation Flights

European companies are at the forefront of developing zero-emission and hybrid-powered aircraft (ZEHA), which promise to revolutionise aviation by significantly reducing carbon emissions. These next-generation aircraft utilise renewable electricity and green hydrogen produced within Europe, aiming to decrease reliance on fossil fuels and bolster the continent’s industrial competitiveness. However, despite promising technological advances, these aircraft face hurdles in reaching commercial markets quickly enough to meet stringent decarbonisation targets. One of the main challenges lies in the existing regulatory framework, which remains tailored to traditional kerosene-powered planes. Current policies impose weight-based charges that disproportionately penalise cleaner aircraft due to their heavier propulsion systems, while slot allocations and fuel mandates still favour conventional operations. This regulatory inertia, combined with intensified competition from China and the United States, complicates the scaling and market entry of innovative European aviation firms. To accelerate the adoption of ZEHA, coordinated efforts are needed across research and development, industrialisation, and market creation. The upcoming Multiannual Financial Framework (MFF), the Aviation Strategy, and several legislative reviews present critical opportunities to support this transition. Key recommendations include earmarking €1 billion in the Clean Aviation successor programme for electric and hydrogen technologies, revising airport charges to avoid penalising clean aircraft, and introducing mechanisms within EU emissions trading and fuel regulations to offset early cost disadvantages. The report also highlights the potential role of private jets as a premium market for ZEHA, proposing a progressive ban on private flights under 1,000 kilometres by 2030 unless operated by zero-emission aircraft. It calls for a taxation framework that reflects the environmental impact of private aviation, ensuring that wealthier flyers contribute fairly to the sector’s greening efforts. With the right policy choices and funding, Europe could secure its leadership in the next generation of sustainable commercial aviation.