Airlines are making so-called ‘windfall profits’ of up to €1.3bn by charging passengers for permits to pollute which they are no longer obliged to hand over to European countries. That is the main conclusion of a study by the Dutch consultancy CE Delft carried out for T&E. T&E, in a statement, called for airlines not to retain these windfall profits - which would, they say, be a betrayal of passengers’ contributions to fight climate change. Instead, the campaign group called for any such profits to fund developing countries’ efforts to deal with the effects of climate change.
Flying in the face of industry claims about the unbearable cost  of including aviation in the EU Emissions Trading System (ETS), air carriers will generate up to an estimated €1.3bn in windfall profits in 2012 alone, a new study by independent consultancy CE Delft reveals.
A new study shows that the aviation industry will receive substantial additional windfall profits from the proposed ‘stopping of the clock’ for flights to and from Europe under the EU Emissions Trading System (ETS). Airlines should not retain these windfall profits – that would be unjust, self-serving and a betrayal of passengers’ contributions to fight climate change - but give them to the UN’s Green Climate Fund established to assist developing countries tackle the impacts of climate change.
In this open letter, Transport & Environment, in conjunction with other environmental campaign groups, call on EU Finance Ministers urging them to support a significant increase in the minimum levels of taxation of diesel fuel for transport purposes.
"The role of the Commission in advancing the road pricing agenda cannot be underestimated", T&E Director Jos Dings stated at the Conference on fair and efficient road pricing organised by the European Commission on 5 Dec.
The European Commission has proposed a one year “stop the clock” derogation for the aviation portion of the EU Emissions Trading System (ETS) Directive to provide ‘breathing space’ for the International Civil Aviation Organisation (ICAO) to come to a global agreement on regulating international aviation emissions. The derogation applies to all flights to and from Europe (including EFTA states and Croatia) except intra-European flights.T&E regrets that the Commission has been put in this difficult position through international pressure, particularly from the US.
In October 2012 the European Commission launched a public consultation on 'Review of existing legislation on VAT reduced rates'. T&E has been campaigning to abolish the reduced rates for international passenger transport for years due to the harmful competitive distortions caused by those rates and the implicit subsidy it provides for passenger transport, especially in the aviation sector.