Thursday, January 30, 1997
The fight against global warming may require that advanced countries agree to a charge on aviation fuel that would result in higher airfares and reduced demand for air travel and freight, according to a recent draft report by the Organization for Economic Cooperation and Development (OECD).
The suggestion came in a draft working paper on global aviation emissions of greenhouse gases, penned by an expert group supported by the OECD and the International Energy Agency. The paper said a reduction in aviation fuel consumption resulting from uniform application of a fuel charge that lead to fuel prices gradually increasing by 1-5% per year from 2000 to 2020 may bring about a 30% reduction in projected carbon dioxide (CO2) emissions by commercial aircraft in 2020.
It said the reduction in greenhouse gas emissions might also be expected to come from a combination of changes in technology and operational practices.
The draft report is scheduled to be debated at a special session of parties to the U.N. Convention on Climate Change to be held in March in Bonn, Germany. It will be subsequently submitted in final form to the third conference of parties to the convention, which is to be held in the Japanese city of Kyoto in December.
Fuel used in international aviation is not normally taxed, though some countries have from time to time imposed taxes on aviation fuel for domestic use.
Member states of the Council of the International Civil Aviation Organization (ICAO) have passed a nonbinding resolution that aviation fuel should not be taxed, though it does accept the principle that countries can impose 'environmental charges' on airlines.
Germany, Norway, Sweden and Switzerland have been at the forefront of countries advocating a relaxation of the ICAO council's position on aviation fuel tax. Emissions of CO2 from commercial aircraft currently account for only 2% of global CO2 emissions, but are forecast to increase by 3-5% per year to 2020.
The draft report said that the use of known technology could allow for a 30-40% reduction in energy expended by aircraft. It said that a further 10-20% could be shaved off if flight operations were improved so that waiting time in the air before landing was minimized.
The draft report said the revenue earned from a charge on aviation fuel could be used within the aviation industry to fund research and development, to provide investment incentives for improving energy efficiency or to improve infrastructure and air traffic management in ways that reduce energy use.
It said it was unlikely that a charge introduced gradually would have a noticeably adverse effect on industry profits or employment levels, while the demand for air travel and freight should fall only about 6% short of forecasts.
It said international negotiations were required to reach agreement on the principle of imposing a fuel charge, as well as on such matters as the level of the charge and how the revenue should be collected and used.
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