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.
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 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.
Even if carbon prices in Europe’s emissions trading system (ETS) trebled from today’s levels , including road transport in the ETS would only reduce oil use and CO2 emissions from transport by 3% over the next 15 years, a new study by Cambridge Econometrics reveals. This level is insufficient for road transport to make a proportionate contribution to Europe’s climate and energy security goals.
Opinion by Jos Dings - T&E Director
Did we miss something? Last year, the European Commission didn’t propose a single new legislative measure to clean up transport. To be fair, it has been spending most of its time worrying about the future of the Eurozone. As a result, for T&E this was the sort of year where seeds for smarter transport policy were sown. We’re optimistic that next year could bring a decent crop of positive changes.