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 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.
Today’s vote by MEPs to introduce distance-based road tolls for trucks will mean vehicles will pay for the CO2 emissions they emit, incentivising cleaner trucking, green NGO Transport & Environment has said. By 2026 drivers would no longer be able to pay by duration – per day, week, month, etc – to drive unlimited distances, and would instead pay per km, according to the European Parliament transport committee’s revision of the Eurovignette Directive.
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.
The days of time-based charges for heavy-goods vehicles may be numbered after it emerged that two more EU member countries are close to introducing distance-based charging schemes for heavy goods vehicles. The Netherlands and Bulgaria plan to introduce distance-based charging, and the timing could be important for the future of truck charging in Europe.
On 31 May 2017, the European Commission published its proposal to review the ‘Eurovignette’ Directive. The Directive defines how Member States of the European Union can charge vehicles for their use of road infrastructure and was conceived to ensure the proper functioning of the EU transport market. Transport accounts for around a quarter of EU GHG emissions. Meanwhile air pollution from road transport contributes to over 400,000 premature deaths per year, 26,000 people die in traffic annually, and the EU economy loses €100 bn every year in congestion. This briefing outlines why road charging is a key instrument to tackle this.
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.