The scope of the aviation scheme
MEPs back the immediate introduction of kerosene taxes by requiring a tax on all domestic and intra-EU flights (with the possibility to exempt all carriers on routes on which non-EU carriers operate). They also call on the Commission to propose arrangements for their worldwide introduction. Furthermore, they agree that tax exemptions on air transport and other imbalances lead to very unfair competition between aviation and other transport sectors, and therefore ending the VAT exemption would further level the playing field, and bring fiscal as well as environmental benefits.
Parliament says that a comprehensive package of measures is needed to address the impact of aviation on the climate, as well as applying the “polluter pays” principle. The House emphasises the need for a method, which also properly reflects the sector's dynamic nature, and rewards past and future good performance.
MEPs ask that special attention be paid to the situation of the most isolated territories which are particularly dependent on air transport services, and especially to insular or outermost regions, where alternative solutions are limited, or do not exist.
On inclusion of aviation into the EU ETS
Parliament recognises that emissions trading has the potential to play a role as part of a comprehensive package of measures to address the climate impact of aviation, provided it is appropriately designed. MEPs stress that the environmental effectiveness of any emissions trading scheme will depend on it having sufficiently broad geographical scope; a rigorous cap; full auctioning of initial allocation; the technological level and early actions taken into account in the allocation; and addressing full climate impact.
Parliament proposes, however, the introduction of a separate dedicated scheme for aviation emissions, recognising that, due to the lack of binding commitments for international aviation emissions under the UNFCCC (United Nations Framework Convention on Climate Change) and the Kyoto Protocol, the aviation sector would be unable to actually sell into the ETS.
The report stresses that, if aviation is to be eventually incorporated into the wider ETS, there should at least be a pilot phase of a separate scheme covering the period 2008-2012.
MEPs propose that, should aviation be eventually incorporated into a wider ETS, special conditions be applied to ensure it does not distort the market to the detriment of less protected sectors: a cap on the number of emission rights it is permitted to buy from the market, and a requirement to make a proportion of the necessary emissions reductions without trading, before being allowed to buy permits.
Finally, the House asks the Commission to present immediately an impact assessment on the specific parameters of its design proposals, e.g. level of cap for aviation, compliance, choice of participating entity (aircraft operators, airlines or airports), and to present proposals to ensure that the ETS will be applicable to airlines from outside the European Union
