The EU should fill its post-Brexit budget gap with new revenues from taxing transport, which is Europe’s biggest emitter of greenhouse gases, former Italian prime minister Enrico Letta, ex-WTO head Pascal Lamy, former finance minister of Germany Hans Eichel and 14 other economists have told EU leaders. In advocating a green tax shift, they called for a higher minimum tax on road diesel, VAT on airline tickets for the first time and taxing aviation kerosene which is currently exempt. Sustainable transport group Transport & Environment welcomed the letter, citing its own analysis that such a green tax shift would generate additional revenues of more than €50 billion a year which would allow for the income tax burden to be reduced.
There are growing calls for a green tax shift to the transport sector, which would help fill a gap in the EU’s budget after the UK leaves. A T&E analysis has found new measures such as a carbon tax on motor fuels, aviation kerosene duty, and ending the VAT exemption for flights within and from Europe would raise more than €50 billion annually. And last week, as EU leaders discussed the looming gap, 17 eminent economists rowed in behind the idea, calling it a ‘once in a decade opportunity’ to create a fossil-fuel contribution to the EU budget.
Transport is Europe’s biggest climate problem, representing 27% of the bloc’s greenhouse gas emissions. If Europe is to meet its climate targets and avoid the severe impacts of climate change, additional action is needed to tackle emissions from the transport sector. Meanwhile, the EU is drafting the post-2020 budget with a proposal expected in May 2018. The annual €10-14 billion gap that will be left as a result of the UK’s departure from the EU has triggered debate on alternative sources of revenue for the EU budget. This position paper outlines how a green tax shift has a key role to play in tackling transport emissions and addressing a gap in the EU's budget post-2020.
Efforts to position electrofuels as the great hope to decarbonise road transport received a blow with findings that the synthetic fuel is neither an efficient or a cost-effective solution for cars and trucks.
Electrofuels are neither an efficient or a cost-effective solution to decarbonise road transport, a new independent study has found. The study, conducted by consultancy Cerulogy for NGO Transport & Environment (T&E), concludes that e-fuels could supply a limited amount of aviation's growing energy needs but only if the electricity comes from new renewable sources with strict sustainability criteria. T&E said the EU must ensure only e-fuels produced from renewables, such as wind and solar, can be eligible under the advanced fuels target and that it should adopt measures to avoid double counting of renewable electricity under the Renewable Energy Directive.
The announcement of new CO2 standards for cars, vans and, for the first time in Europe, trucks forms the centrepiece of the EU’s strategy for low-emission mobility and has been welcomed by Transport & Environment (T&E) as a meaningful step in the fight against climate change. But the Commission’s plan is completely devoid of ambition on cutting emissions from aviation and shipping, the sustainable transport group said.
The overall direction for road transport in today’s leaked draft of the European Commission strategy for low-emission mobility has been welcomed by Transport & Environment (T&E), though the sustainable transport group has urged stronger action on greenhouse gases from international aviation and shipping.
Speech to Informal Council of EU Environment Ministers by Jos Dings, executive director, Transport & EnvironmentAmsterdam, 14 April 2016Thank you Madam President for the invitation and for organising this very timely and relevant event.I represent Transport & Environment, a Brussels-based environmental group specialising in sustainable transport, with 50 member organisations in 27 countries across this beautiful continent.