Taxing jet-fuel still on the radar, despite aviation’s virus woes

(EurActiv, 22 Jun 2020) Kerosene’s plum position as one of the few fuels exempt from taxation is still under severe scrutiny, as momentum builds behind the idea of setting up multilateral agreements between willing countries.

Together they are responsible for more than 50% of the EU’s flight emissions – which make up more than 3% of the bloc’s total greenhouse gas output – and, despite the heavy body blow inflicted by the coronavirus on the sector, are still reportedly sticking to their guns.

Airline group IATA predicts that Europe’s airlines will lose $23 billion this year and up to 7 million jobs could be at risk. The industry has requested more than €30bn in aid as a result, some of which comes with green strings and has already been given regulatory approval.

According to a new tool developed by clean mobility group Transport & Environment, if Belgium, Denmark, France, Germany, Italy, Luxembourg, the Netherlands and Sweden, plus Finland and Spain, which have since indicated support for the idea, were to impose a €0.33 per litre tax on flights between their airports, it would generate €3.7bn every year.

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EurActiv, 22 Jun 2020: Taxing jet-fuel still on the radar, despite aviation’s virus woes