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.
This is T&E's report on why Europe’s obsession with diesel cars is bad for its economy, its drivers and the environment.
Two years after the Dieselgate scandal exposed the dirty nature of diesel cars, a new study by Transport & Environment (T&E) shows that diesel cars not only pollute the air but also emit more climate-change emissions (CO2) than petrol cars. A lifecycle analysis of vehicle emissions proves that diesel cars over its lifetime emit 3.65 tonnes of CO2 more than a petrol equivalent. Diesel’s higher climate impact is due to a more energy-intensive refining of the diesel fuel; more materials required in the production of heavier and more complex engines; higher emissions from the biodiesel blended in the diesel fuel; and longer mileage because fuel is cheaper - see infographics below.
The average car sits unused for more than 90% of the time, carries on average just one and a half people and costs, on average, €6,500 a year to own and run. Each car occupies 150m2 of urban land and still this is not the full bill – congestion costs the EU economy €100 billion annually. The convenience that made the car a 20th century icon has been eroded by its popularity.
New mobility services and business models are changing urban transport, affecting both the supply and demand sides of urban mobility market. Evidence shows that these developments can lead to a significant reduction of single occupancy private car use and an increase of public transport use, leading to a strong reduction in congestion, local air pollution, and CO2 emissions. Despite their long term potential, the growth and development of new mobility services are often hampered by existing market access restrictions, operational requirements and financial disincentives. This joint position paper outlines the key recommendations from 10 organisations engaged in promoting new mobility. They are: BMW Group, car2go, European Cyclists' Federation, Mobility Nation, nextbike, Siemens, Transport & Environment, Uber, and the City of Vilnius.
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.
Transport has taken over from power generation as the biggest source of greenhouse gas emissions in the US – and the situation is likely to get worse as the Trump administration plans to weaken emissions standards. T&E says the policy will only damage US carmakers. Transport has been the single biggest emitter of greenhouse gases in Europe since 2016.
EU governments must step back from irreparably weakening Europe’s biggest climate law, six of Europe’s leading environmental NGOs have said, after talks between member states and the European Parliament ended in deadlock this week. The proposed Effort Sharing Regulation sets binding national emission reduction targets for the 2021-2030 period, but governments are insistent on loopholes that would actually result in hundreds of millions of tonnes in additional CO2 emissions.
Europe’s only government that does not tax diesel fuel more favourably than petrol has gone a step further by increasing tax on diesel engine cars while leaving it unaltered for petrol cars. In his annual budget speech, the British chancellor of the exchequer (finance minister) said new diesels that failed to pass the strictest emissions tests would pay more tax each year. T&E said the announcement was more important for its symbolism than its financial impact.