Study calls for green levy on air travel

Date: 02/04/1998

By Chris Johnstone

THE European Commission is being urged to impose an environmental charge on air travel, to make airlines pay for their pollution and curb the rise of harmful emissions.

An environmental fee based on the type of aircraft used and the length of the flight could, and should be introduced in Europe, says a report partly funded by the Commission itself.

The report concludes that a charge would be a less damaging alternative to a tax on aeroplane fuel (kerosene), which has been suggested in the past.

The system would have the added advantage of being easily built into the current 'en route' charging regime under which aircraft pay for using airspace, and would be imposed on European and non-European airlines alike.

One of the main arguments against a straight levy on kerosene, or moves to scrap its current exemption from value added tax, is that European airlines would suffer a competitive disadvantage if other countries refused to follow the EU's lead by imposing similar charges.

The report warns that a levy on European aviation fuel would pose a much bigger danger of customers shifting their travel to non-EU airports to take advantage of cheaper fares, especially for long-haul flights. It says a charge on fuel equivalent to 0.18 ecu per litre would add about 27 ecu to the cost of a 6,000 kilometre flight.

A fee set at the level of 0.18 ecu/litre would bring down the predicted rise in Europe's aircraft emissions to 200% by 2025, compared with a 300% increase if nothing is done.

The study was coordinated by the Netherlands Society for Nature Conservation and the Environment and sponsored by the Commission and the Dutch, Austrian, Danish, Norwegian and German governments. EU transport and environment ministers are expected to discuss its findings at their informal meeting in Chester on 24 April.

Frazer Goodwin, of the European Federation for Transport and Environment, said money raised from the charge would be used to combat environmental damage caused by the airline industry by, for example, funding better protection against noise.

Aviation creates about 12% of the total emissions from EU transport, but its share is set to rise dramatically alongside double digit growth rates for the sector. "It is inevitable that there will be a charge. It is just a question of when," said Goodwin.

The Association of European Airlines (AEA) says it wants to see proof that airlines are polluting more than other forms of transport before considering whether an environmental charge is justified.