Willie Walsh, director general of the International Air Transport Association, said new quotas for sustainable aviation fuel will allow suppliers to hike prices – a cost that would be passed on to passengers through increased fares.
Sustainable aviation fuel, which is made from household waste and used cooking oil, comprises less than 0.1pc of all the jet fuel used.
The EU’s ReFuel regime requires airlines to increase the amount they use in the coming years.
Mr Walsh, the former boss of British Airways, said: “This is the wrong approach, they should be forcing fuel producers to improve their performance.
“Mandating airlines to use a product that isn’t available at scale is not the way forward… it’s not going to it’s not going to provide any real benefit.”
Speaking at an event in London, Mr Walsh said that the UK should ignore the EU’s approach and follow the lead set by President Joe Biden’s administration.
“Governments must lead with incentives, with more carrot and less stick,” he said.