Read The Times Australia

Daily Bulletin

Airline emissions and the case for a carbon tax on flight tickets

  • Written by: The Conversation Contributor

After years of delay, the international aviation industry is inching its way towards bringing its greenhouse emissions under some form of regulation. Last month the United Nations' International Civil Aviation Organisation (ICAO) released a draft resolution that would, for the first time ever, regulate aviation emissions on a global basis.

This should be significant news. Aviation is the fastest-growing source of greenhouse emissions in the transport sector, it produces between 3% and 8% of the world’s total emissions (more than the whole of South Korea), and air travel is growing at 4-5% per year. Yet these emissions have never been regulated on any meaningful scale.

It’s not hard to see why. Jurisdictional issues have meant that aviation emissions are not dealt with by the UN’s Framework Convention on Climate Change, which asks nations to do their fair share to cut emissions.

Say an aircraft is manufactured in country A, owned by a company in country B, leased to an airline in country C, takes off from country D, flies over country E, and lands at an airport in country F. Who is responsible for that aircraft’s emissions?

Tricky problem

Previous attempts by states (or groups of states, such as the European Union) to regulate these international emissions have ended in tears. As a result of the EU’s attempt to include non-EU airlines in its Emissions Trading Scheme, the United States passed legislation – the pointedly titled European Union Emissions Trading Scheme Prohibition Act of 2011 – prohibiting its airlines from complying.

There are also reasons to believe that the ICAO’s latest effort is problematic too. It proposes carbon offsetting as the main mechanism through which aviation emissions should be regulated – a proposal that sits uneasily with the Paris climate agreement struck late last year, which makes no mention of carbon offsetting.

There is, of course, another way to price carbon and thereby discourage emissions: a carbon tax. Adding such a tax to airline tickets might sound like a non-starter in terms of getting the industry to sign up, but it would actually be very similar to one that already exists.

The UNITAID solidarity levy is a supplementary charge on airline tickets, ranging from US$1 for economy class, up to a maximum of US$40 for business and first class. It is implemented by eight countries (with 15 states gearing up to implement it), the proceeds of which fund health initiatives in the developing world, including providing access to drugs for HIV/AIDS, malaria and tuberculosis.

This levy model would address the aviation emissions problem far more effectively than the proposed draft ICAO offsetting resolution.

image A few dollars extra on a ticket could help curb emissions. Africa Studio/shutterstock.com

The tax route

Taxes have several advantages over emissions trading schemes in addressing the emissions problem. Taxation is a proven instrument. Tax systems are mature and universally applied policy measures. Taxation is also more direct and more transparent than emissions trading, and captures revenue more easily with less regulatory cost.

The UNITAID air ticket levy is not strictly a tax and so avoids many of the problems (imagined and real) but bears all the (positive) characteristics of a tax.

Most passengers who pay the UNITAID levy are typically charged US$1 or US$2, on outbound air tickets using existing airport tax systems. It is applied to all airlines, both domestic and international, and airlines collect and declare the levy. Passengers in transit are exempt and countries themselves can decide what rate to charge and which ticket classes they would like to include.

Because passengers, rather than airlines, are charged, a similar levy could be a useful “bottom-up” model for reducing aviation emissions.

Aviation nations

This is a particularly useful idea in the wake of the Paris climate agreement, which is significant for aviation because it largely does away with the previous principle that only developed states should take the lead in addressing the climate change problem.

Now all states, both rich and poor, have put forward “intended nationally determined contributions” to address the climate change problem.

Yet another problem with the ICAO draft resolution is that, unlike the Paris deal, it still maintains the distinction between developed and developing states. Draft clause 6 acknowledges the:

…special circumstances and respective capabilities of States, in particular developing States, in terms of vulnerability to the impacts of climate change, economic development levels, and contributions to international aviation emissions, while minimizing market distortion.

Applying a point-of-purchase carbon tax on airline tickets would level the playing field because everyone who flies would pay – both those passengers in developing countries, and the far more numerous ones in the developed world – with states setting the tax at a level appropriate to their (developed or developing) circumstances.

The problem with offsets

Contrast that with the ICAO’s proposed approach, which is to implement a “Global Market-based Measure” (its preferred term for its proposed offsetting scheme), alongside a range of other methods including improvements to aircraft technology and operations, alternative fuels, and other strategies.

The problem is that most countries have now either adopted emissions trading or carbon taxation as their preferred methods to drive down emissions.

In isolation, offsets have little effect. They are a diversion from legislated mitigation; it is collective action that matters.

What is needed is policy that motivates major industrial sectors to reduce emissions and use resources more efficiently – taxation, in other words.

Authors: The Conversation Contributor

Read more http://theconversation.com/airline-emissions-and-the-case-for-a-carbon-tax-on-flight-tickets-56598

Business News

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Brid...

Daily Bulletin - avatar Daily Bulletin

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

How Australian Businesses Can Measure SEO ROI

SEO can feel vague when you are staring at a dashboard full of numbers that do not clearly connect to revenue. The key is to measure the right signals in the right order, then tie them back to outcome...

Daily Bulletin - avatar Daily Bulletin

How Commercial Roller Shutters Improve Site Security Without Slowing Operations

Security upgrades can be frustrating when they make everyday work harder. A door that takes too long to open, creates bottlenecks at shift change, or fails at the worst time can turn “better protectio...

Daily Bulletin - avatar Daily Bulletin

Why a Document Destruction Service Still Matters for Modern Businesses

Businesses generate large volumes of information every day, from staff records and contracts to invoices, reports and customer files. While attention often focuses on how documents are stored, the way...

Daily Bulletin - avatar Daily Bulletin

Bicycle Rack Safety and Space-Smart Storage

Bike storage problems usually show up as small annoyances first: tangled handlebars, scratched frames, and bikes that topple when you pull one out. Over time, those issues become safety risks, especia...

Daily Bulletin - avatar Daily Bulletin

How to Tell if a Childcare Centre Is a Good Fit for Your Child

Choosing childcare can feel like you’re making a huge decision with limited information. Tours are short, centres are often on their best behaviour, and your child might act differently in a new space...

Daily Bulletin - avatar Daily Bulletin

Car Import Timeline: What Usually Happens at Each Stage

Importing a car into Australia can feel confusing because multiple agencies and checkpoints are involved, and the timeline is shaped as much by paperwork quality as it is by shipping speed. The most u...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...

Why Stress Relief For Dogs Is Essential For Emotional Balance And Long-Term Wellbeing

Managing emotional health is just as important as physical care when it comes to pets, which is why ...