One billion. That’s how much in euro that Germany’s tax on airline tickets generates every year. A billion is about a quarter of what trucks pay in Maut every year, or about 35 times less than the motor fuel tax.
This is the fifth in a series of eight snippets about how to decarbonise land freight by 2050. Based on a new T&E study, the series will culminate in a public debate in Brussels in September.
T&E’s ETS calculator shows how getting the right balance on aviation’s inclusion in the EU emissions trading system (ETS) can help solve two problems at once: the sector’s major and growing climate impact, and Europe’s need to raise climate finance. Decision-makers should seize this opportunity offered by the ongoing reform of aviation provisions in the EU ETS.
As delegates fly and equipment is shipped to another climate conference in Bonn, the question of who is responsible for the resulting emissions arises. The conventional wisdom is that they are covered not by the Paris agreement but by the two UN agencies which were established to regulate these sectors – the International Civil Aviation Organisation (ICAO) and the International Maritime Organisation (IMO). Three years ago this may have made sense. Until the Paris agreement was finalised at the end of 2015, the major climate agreement in force was the Kyoto Protocol which tasked developed countries to work through ICAO and IMO to cut emissions.
When we talk about transport’s climate problem, we usually talk about cars, trucks, planes and ships as the big issues. But, of course, they’re only part of the story. The heart of the problem is not the vehicles or the mobility they provide, but the pollution they cause by burning oil.
Transport is Europe’s biggest CO2 emitter and journeys by plane form a significant part. Many member states exempt tickets for domestic trips from value added tax (VAT) and all states exempt intra-EU airline tickets. The exemption for aviation costs governments some €17 billion annually. Even the European Commission calls these exemptions subsidies.
No one likes being misled by airlines, not on price, or where their luggage ends up. But fliers face a new risk: being misled on how sustainable their flights are. In a few years, fliers could be told that some of their ticket price is being used to prevent deforestation when in reality those forests had been cut down years ago. That’s because in 2016 countries meeting at the UN’s aviation agency (ICAO) agreed to establish a scheme to offset aviation emissions above 2020 levels, but left it uncertain as to whether they would deliver on this promise. The scheme, known as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), means airlines won’t have to cut their CO2 emissions but instead pay other actors (the “offsetting” bit) to reduce theirs.
Almost every Christmas gift you gave or received two months ago was transported vast distances across the ocean, spending weeks inside a shipping container. What powers these epic journeys across the globe? Unfortunately, it’s not reindeers. It’s the black, sludgy dregs of the refining process known as heavy fuel oil. Each tonne, when burned, releases several thousand times the amount of sulphur and tiny lung-damaging particles that petrol or diesel cars do, while also contributing to dangerous climate change.
Germany is in the grips of what may well be the largest cartel case in its industrial history. According to Der Spiegel, a German weekly, Volkswagen and Daimler have turned themselves in to the German and EU competition authorities. The alleged cartel included themselves BMW, Audi and Porsche, and dates back all the way to the 1990s. The news comes roughly a year after the European Commission fined EU truckmakers a record €2.9 billion for price fixing and collusion on emissions technology.
This is the fourth in a series of eight snippets about how to decarbonise land freight by 2050. Based on a new T&E study, the series will culminate in a public debate in Brussels in September.