MEPs back the immediate introduction of kerosene taxes by requiring a tax on all domestic and intra-EU flights (with the possibility to exempt all carriers on routes on which non-EU carriers operate). They also call on the Commission to propose arrangements for their worldwide introduction. Furthermore, they agree that tax exemptions on air transport and other imbalances lead to very unfair competition between aviation and other transport sectors, and therefore ending the VAT exemption would further level the playing field, and bring fiscal as well as environmental benefits.
Parliament says that a comprehensive package of measures is needed to address the impact of aviation on the climate, as well as applying the “polluter pays” principle. The House emphasises the need for a method, which also properly reflects the sector’s dynamic nature, and rewards past and future good performance.
MEPs ask that special attention be paid to the situation of the most isolated territories which are particularly dependent on air transport services, and especially to insular or outermost regions, where alternative solutions are limited, or do not exist.
The Parliament proposes, however, the introduction of a separate dedicated scheme for aviation emissions, recognising that, due to the lack of binding commitments for international aviation emissions under the UNFCCC (United Nations Framework Convention on Climate Change) and the Kyoto Protocol, the aviation sector would be unable to actually sell into the ETS and states there should at least be a pilot phase of a separate scheme covering the period 2008-2012.
MEPs propose that, should aviation be eventually incorporated into a wider ETS, special conditions be applied to ensure it does not distort the market to the detriment of less protected sectors: a cap on the number of emission rights it is permitted to buy from the market, and a requirement to make a proportion of the necessary emissions reductions without trading, before being allowed to buy permits.
Finally, the House asks the Commission to present immediately an impact assessment on the specific parameters of its design proposals, e.g. level of cap for aviation, compliance, choice of participating entity (aircraft operators, airlines or airports), and to present proposals to ensure that the ETS will be applicable to airlines from outside the European Union
The International Air Carrier Association reacted with dismay as the European Parliament adopted its Opinion on the Commission Communication on “Reducing the Climate Change Impact of Aviation.” The Parliament has missed the opportunity to promote a realistic strategy addressing aviation and climate change and instead is calling offhandedly for the introduction of all the most restrictive and punitive measures possible. No assessment has been made of the consequences for the airline industry, the European economy or the quality of life of European citizens.
Sylviane Lust, IACA Director General commented: “Any approach to aviation and the environment which calls for the simultaneous introduction of taxes on aviation fuel, VAT on airline tickets, environmental charges at airports and emissions trading scheme (ETS) totally ignores economic realities. Moreover the recommendation to set up a separate ETS scheme for aviation is totally unrealistic.”
IACA believes that the airline industry, its employees, and its customers deserve a more serious and responsible approach from the European Parliament. As a sector contributing so essentially to economic development and the quality of life of all European citizens, we expect the European Parliament to carefully balance the interests of all society.
The radical approach proposed by the European Parliament in its Opinion cannot be seen as a constructive contribution to the debate on aviation and the environment.
