Iranian Oil ,Gas and Petrochemical Products Exporters' Union

Brussels targets aviation fuel tax in drive to cut carbon emissions

Brussels targets aviation fuel tax in drive to cut carbon emissions
Brussels will set out plans this week to increase taxes on polluting fuels and introduce an EU-wide kerosene levy on aviation for the first time, under measures intended to put it at the forefront of global efforts to cut carbon emissions. The European Commission will propose a revamp of its 15-year-old rules on carbon taxes to provide an incentive for low-emissions fuel and impose levies on heavily polluting energy used in the airline and shipping industries. The measure is one of a dozen policies to be unveiled on Wednesday to ensure the EU can meet a goal of reducing average carbon emissions by 55 per cent by 2030. Others include an extension of the EU’s emissions trading scheme, tougher CO2 rules for cars and a carbon levy on some imports. A draft legal text of the energy taxation directive, seen by the Financial Times, proposes gradually increasing minimum rates on the most polluting fuels such as petrol, diesel and kerosene used as jet fuel over a period of 10 years. Zero-emissions fuels, green hydrogen and sustainable aviation fuels will face no levies for a decade under the proposed system. The “Fit for 55” package puts the EU at the vanguard of decarbonisation efforts, but the proposals risk a backlash from some governments and the public. Introducing environmental taxes is likely to be among the most politically sensitive measures in the commission’s plans. Unlike most of Brussels’ new green policies, updating the energy taxation directive will require unanimous backing from the EU’s 27 member states to become a reality. Taxing carbon is increasingly seen as an important way to drive down emissions. At the weekend, G20 finance ministers collectively endorsed carbon pricing for the first time, saying in a joint statement it was one of a “wide set of tools” for tackling climate change. The EU’s energy taxation rules date back to 2006 and have created a system that “favours fossil fuel use” owing to exemptions and loopholes for dirty energy across different member states, according to the text. The directive is designed to set minimum tax rates for energy products. One of the big changes being proposed is an end to exemptions for heavily polluting fuels such as kerosene used in aviation. The draft says jet fuel used in intra-EU flights should be subject to a new minimum rate of taxation, the details of which have not yet been decided, said officials. The rules should, however, exempt cargo-only flights, and apply lower rates for non-commercial flights, according to the draft. Although a kerosene tax has been welcomed by many EU countries, it has sparked resistance from the aviation industry. Airline group A4E has said new carbon taxes for the sector are “ecologically and economically counterproductive”. Germany’s Greens page 2 Aluminium sector wants out page 6 FT View page 16
Jul 13, 2021 11:20

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The section of oil, gas and petro-chemistry is the up-most and first industrial vantage of the country and the pivot of the Economy of Iran. Regarding the importance of this section and the need for coordinating and organizing the most active people in the field of production and exporting oil ,gas, and petrochemical products ,some forethoughtful and job- makers in the private section of the country decided to come together to fight against the threats by using the opportunity of mass intelligence and potentials.