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The European Commission is toying with the idea of introducing a tax on kerosene as one of the measures to achieve the climate goals. As a result, flying is likely to become more expensive.
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This week, the European Commission is proposing plans to raise taxes on fuel and introduce a European tax on kerosene for the first time. That writes the Financial Times, which could view preparatory texts.
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The measure is part of a plan to achieve the more ambitious climate targets. The aim is to reduce CO . by 55 percent by 20302 to emit. The governments of the EU countries have yet to agree to the measures, whereby each country has a veto right for taxes.
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Emission rights
An important part of the plans will be the expansion of emission rights. In such a system, a ceiling is placed on the pollution, which decreases year after year. Subsequently, a price – increasing year after year – is placed on tradable rights in order to be allowed to pollute below that ceiling.
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The aviation sector should also buy emission rights. On top of that, there would be a kerosene tax.
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Emission rights are already in place today for heavy industry, the electricity sector and aviation. However, the latter gets free rights. The Commission plans to scrap it, forcing airlines to buy the rights. On top of that there would be a kerosene tax. There would also be a fuel tax for shipping.
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Cars and fuel
Other proposals would be stricter CO2rules for cars and a carbon tax on imports. This should prevent European companies from experiencing unfair competition from non-European companies that work more polluting and therefore cheaper.
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Earlier it became known that the Commission is also thinking about more expensive prices for heating oil and natural gas and for diesel and petrol at the pump. That would also work through a system of tradable emission rights.
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Social correction
To make a repeat of the yellow vests-protest At higher energy prices, a social energy fund for low-income people should cushion the shock to their purchasing power. But even for that plan, we still have to wait for details, which are expected later this week.
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