EU to charge passengers carbon tax for vacation flights
July 26, 2005
The European Commission wants to begin tacking carbon emission charges on airlines in its strategy to tackle climate change, according to a document released by the EU executive Commission yesterday. Airlines would likely pass these fees on to passengers, who would see ticket prices rise by up to 9 euros ($10.86) for a return flight.
The commission estimates that such a scheme would cause a slight reduction in demand for air travel in the EU — 0.2-3.0 percent over a five-year period “compared to business-as-usual growth of more than 4 percent per year.” To counter any sort of competitive disadvantage in the sector, the commission would include emissions from all flights departing from the 25-nation EU, regardless of the origin of the carrier.
The EU has agreed to the Kyoto Protocol which calls for binding limits on carbon dioxide emissions. Carbon dioxide emissions are believed to be a contributing factor to global climate change.