European Court Annuls Exclusion of Business Aircraft Manufacturing from Green Taxonomy

The European General Court has annulled a European Commission decision from 2023 that excluded the manufacturing of business aircraft from the EU's green taxonomy. The ruling, announced on June 24, 2026, takes effect immediately.

The court found that the Commission failed to adequately consider the specific characteristics of business aircraft, such as their flexibility and speed, and their role in various missions. The decision also recognized the potential of Sustainable Aviation Fuels (SAF), which the Commission had not sufficiently assessed.

Dassault Aviation, a major manufacturer of business jets and military aircraft, had challenged the exclusion, arguing it overlooked the sector's contributions to connectivity and efficiency, as well as advancements in sustainable aviation technologies. The annulment allows for the manufacturing of business aircraft to be reconsidered for inclusion within the taxonomy, provided specific criteria are met.

This decision has implications for the aerospace industry and sustainable finance, as it potentially broadens the scope of activities considered environmentally sustainable within the EU framework. It underscores the importance of detailed assessments and factual considerations in regulatory classifications.