EU urged to end tax exemption for aviation fuels

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A coalition of civil society groups, rail sector representatives, and sustainable aviation fuel industry leaders are calling on the European Union to end the tax exemption for fossil jet fuel and marine fuels.

In a letter to EU officials, the coalition argues that the continued exemption undermines the uptake of rail and sustainable fuels, hindering the EU’s efforts to achieve climate neutrality.

They emphasise that the exemption contradicts the spirit of the European Commission’s initial proposal to revise the Energy Taxation Directive (ETD) and international commitments from COP28.

The coalition points out that the unfair tax exemption gives the aviation sector an unfair competitive advantage over rail and other sustainable alternatives, preventing a shift to these greener modes of transport. They also argue that the exemption hinders the deployment and scale-up of sustainable aviation and marine technologies.

The coalition calls on the EU to raise revenues for its sustainable transition by taxing jet fuel on all departing flights from Europe. They argue that this would encourage energy efficiency in the aviation sector and support the development of rail services and sustainable fuels.

The coalition emphasizes that ending the tax exemption is essential for achieving a socially fair and just transition to a sustainable future. They urge EU officials to take immediate action to address this issue and ensure that the aviation sector contributes to the EU’s climate goals.

The letter was co-signed by Transport & Environment, ALLRAIL, Association of European Railway Rolling Stock Lessors (AERRL), Back on Track, BLOOM, Bond Beter Leefmilieu, Carbon Market Watch, Eco-Union, Ecodes, EDL, European Energy, H2V, Nature & Milieu, Nordic Electrofuel, Norsk e-fuel, Opportunity Green, Sciaena, Seas At Risk, SkyNRG, trainline, VCÖ and Zero.

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