European Commission-backed report finds aviation trading scheme is ‘feasible’ but environmentalists want fuel tax

Environmental groups are vowing to step up their efforts to persuade European Union governments to impose a tax on aviation fuel despite the European Commission last week coming out in favour of including aviation in its emissions trading scheme (ETS).

The EC has published the draft results of a study by analyst CE Delft that concludes it is “feasible” to include aviation in the existing ETS, although details on how to do so will take months or years to define. Airline groups say the ETS is a more effective method of reducing greenhouse gas emissions than a tax, as airlines affected would put pressure on airframe and engine manufacturers to continuously improve the efficiency of their designs.

However, a group of European environmental groups under the umbrella organisation Green Skies Alliance is pushing ahead with plans to lobby for a kerosene tax to be introduced for all flights leaving EU airports, in addition to the ETS. “The supply side gains, coming from more efficient equipment, are limited to around 1-2% a year, while air transport is forecast to grow by 5% each year, so we need to find a way to reduce demand as well,” says Jeff Gazzard, Green Skies co-ordinator.

The call comes as a parallel study finds a majority of European Union citizens want to limit the growth of air transport. Environment commissioner Stavros Dimas says: “The message from the many citizens and organisations who expressed their views is very clear: it is time for the air transport sector to start contributing to the fight against climate change. And there is an understanding and acceptance that this must happen even if it may lead to a modest rise in ticket prices.”

For airlines to be included in phase two of the ETS, several hurdles have yet to be cleared. It is unclear, for example, whether emissions should be allocated to the country where an airline is registered, where a flight originates, its destination or the nations it overflies. Only domestic CO2 emissions are now included in national quotas under the Kyoto Protocol on climate change.

JUSTIN WASTNAGE/LONDON

Source: Flight International