Flight tax could raise €100bn to tackle climate crisis, study finds

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"Study Proposes Airline Ticket Levy Could Generate €100 Billion for Climate Action"

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Research conducted by the Dutch environmental consultancy CE Delft has found that introducing a levy on airline tickets could generate over €100 billion annually to help mitigate the impacts of climate change. Currently, aviation contributes to more than 2% of global greenhouse gas emissions, yet the sector benefits from low taxation on fuel, making air travel artificially inexpensive. The study, commissioned by the Global Solidarity Levies Task Force, proposes a tiered ticket tax starting at €10 for short-haul economy flights and escalating to €120 for long-haul business-class tickets. This model not only highlights the inequities in travel taxation but also suggests that a fuel-based levy could raise approximately €84 billion per year, although it may be more easily evaded by airlines adjusting their routes. Public support for such levies is strong, with around 75% of respondents in 13 countries agreeing that wealthier travelers should contribute more through taxes on air travel.

Countries like France, Kenya, and Barbados are advocating for these flight levies as part of a broader strategy to fund climate initiatives, particularly in developing nations. Laurence Tubiana, co-chair of the Global Solidarity Levies Task Force, emphasizes the need for a fair contribution from affluent air travelers, as the current system places a disproportionate tax burden on everyday consumers using fossil fuels for transportation. As governments prepare for the upcoming Cop30 climate summit in Brazil, the focus on climate finance remains critical, especially as rich countries are expected to contribute significantly to aid poorer nations in coping with climate-related challenges. Civil society groups are also calling for fossil fuel companies to be held accountable for their contributions to climate damage, with surveys indicating substantial public support for taxing polluting industries to facilitate a fair transition to renewable energy and provide immediate assistance to vulnerable communities worldwide.

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Adding a levy to airline tickets could raise more than €100bn a year to pay for the damage done by climate breakdown, research has found.

Flying is themost carbon-intensive means of travel, but is artificially cheap as airline fuel is often not taxed, and the environmental impacts are not paid for.

Aviation makes up more than 2% of global greenhouse gas emissions. Even in developed countries, only about half of people fly each year andabout 1% of the world’s populationis responsible for more than half of the aviation emissions.

Several countries are considering putting a charge on tickets that wouldraise money to help tackle the climate crisis, particularly for poor countries.

Analysis by the Dutch environmental consultancy CE Delft, commissioned by the Global Solidarity Levies Task Force, has shown that a levy on tickets that began at €10 on short-haul flights in economy, including domestic flights, rising to €30 on long-haul flights, and €20 for short-haul business-class tickets, rising to €120 for long-haul, would produce revenues of about €106bn a year.

If the levy was based on fuel consumption instead of ticket sales, it could raise about €84bn a year, but could be subject to airlines trying to circumvent the system by changing their routes.

A levy would have broad public support in many regions, as polling by Oxfam and Greenpeace has found about three-quarters of people in 13 countries thought wealthy air passengers should pay more tax.

Countries could also adjust the levy to fall more heavily on the rich and frequent flyers. Private jets could be subject to a separate scheme.

France, Kenya and Barbados are leading calls for a flight levy, and forother potential means of raising the fundsneeded to tackle the climate crisis in developing countries, such as taxes on shipping and fossil fuels. These are known collectively as global solidarity levies, and the charge on aviation is seen as one of the easiest to implement.

Laurence Tubiana, the co-chair of the Global Solidarity Levies Task Force secretariat, set up by the three countries, said: “New levies on first- and business-class tickets or private jets can raise vital funds for everything from health to trains, and climate to development. People around the world pay a lot of tax on petrol for their car, while commercial airlines and private jets often pay no or low tax on their fuel.

“We can redress the balance with a modest extra contribution from those with the greatest means, without raising prices for the vast majority who work hard all year to enjoy an occasional holiday.”

Governments are meeting in Bonn this week and next to discuss the Cop30 climate summit, which will take place in Brazil this November. Campaigners are concerned that too little attention is being given to climate finance, by which rich countries are supposed to help their poorer counterparts to cope with the impacts of extreme weather.

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At last year’s Cop29, in Azerbaijan,countries agreed that $1.3tn should be made availableeach year by 2035 to help poor countries. Of this, at least $300tn is supposed to come directly from rich countries, with the rest from a variety of sources, including global solidarity levies, the private sector and carbon trading.

Many civil society groups are calling for fossil fuel companies to pay for the damage they have caused. TheOxfam and Greenpeace surveyfound about eight in 10 people would support such a move, in a poll carried out in Brazil, Canada, France, Germany, Italy, India, Kenya, Mexico, the Philippines, South Africa, Spain, the UK and the US.

Chiara Liguori, a senior policy adviser at Oxfam, said: “Rich polluters are continuing to cash in on climate devastation, and their profiteering is destroying the lives of millions of people who have done the least to cause the escalating climate crisis.

“Fairer taxes on polluting industries around the world could help avoid more deaths, providing immediate and significant support to climate-vulnerable countries, and finally incentivise investment in a fast, fair transition to renewables.”

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Source: The Guardian