EU plans to tax jet fuel to cut emissions

The European Union (EU) seeks to extend energy taxation to the aviation industry as the bloc redoubles its efforts to increase its chances of achieving European Green Deal targets for carbon neutrality by 2050 .

At a weekend meeting of EU finance ministers in Lisbon, ministers generally supported a proposal to impose an EU-wide aviation fuel tax, the Financial Times reported, citing officials.

The European Commission (EC) is considering changes in its block energy taxation policy in new legislation expected to be proposed this summer and to replace two decades old regulations.

Currently, the aviation and maritime sectors are exempt from EU tax policy, but in light of the European Green Deal and the strong push by several countries towards greener economies, the time has come for tax talks a levy on the airline and maritime industries as well.

All 27 EU member states must agree to these legislative changes in order for an EU-wide tax on jet fuel to be implemented.

EU said that aviation is one of the fastest growing sources of greenhouse gas emissions, and the bloc is taking action to reduce those emissions. The EU is also ready to revise the Aviation Emissions Trading System (ETS) Directive in a way that is compatible with the EU’s climate targets for 2030.

A review of the ETS will be the “cornerstone” of climate and energy legislation expected in July, Frans Timmermans, executive vice-president of the European Green Deal, told Euractiv’s Frédéric Simon in a statement. exclusive interview published Monday.

“We need to look at potential new areas to apply it to. But also in existing areas; we need to look very carefully at free allowances, for example. And perhaps we also need to look very carefully at the possibility of extending the ETS to maritime transport or aviation, ”Timmermans told EURACTIV.

By Tsvetana Paraskova for OilUSD

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