The U.S., China and many other nations say they hate it, but the European Union is determined to lead the way to a greener aviation industry. In 2012, all flights to or from an EU airport will be subject to a new greenhouse gas emissions tax.
This new tax is expected to boost each EU passenger fare from $3-$15. Revenues raised by the new tax, it’s been calculated, could add up to $26 billion over the rest of the decade. The funds will be invested in efforts to slow global warming, and should spur greener technologies in the aviation industry, which is responsible for roughly 3 percent of all global carbon dioxide emissions.
Europe decided to create its own aviation carbon taxation system only after the rest of the world failed to act. Negotiations overseen by a United Nations agency aimed at creating an international carbon cap-and-trade pact have dragged on for 10 years.
Global airlines have lodged many objections to the EU’s initiative, but none is stronger than its stipulation that a Europe-bound flight gets taxed from start to finish, not just when flying over Europe. Cries of outrage invoke national sovereignty and conflicting international aviation agreements. Some countries may try not paying the tax or may make further court appeals, according to the New York Times. Sabre-rattling has even extended to hints of a trade war directed at the EU.
Significantly, some airlines support the new tax. One is Virgin Atlantic, which issued this statement: “Virgin Atlantic has long been a supporter of the EU Emissions Trading Scheme as the first step towards a future global solution ensuring aviation plays its part in meeting climate change targets. However, its success is being seriously undermined.”
What will really happen when the tax goes into effect will soon be known. But this much is clear: Europe intends to stand firm, believing that action to reduce global warming is too important to delay. When the rest of the world decides to act, they say, they’ll happily make changes to their cap-and-trade system to help create a true multinational process for reducing dangerous aviation emissions.
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