Taxation of civil aviation fuels as a source of financing for vulnerable countries

Arbeitspapier

Lifting the tax exemption for jet fuel used for international flights is a recurring demand from many stakeholders committed to sustainable development. Currently, this exemption keeps the carbon pricing of jet fuel at an excessively low level and is inconsistent with the decarbonisation objectives set by the international community. A tax of €0.33 per litre would raise €18 billion per year, while a tax of €0.1 per litre would raise €5.8 billion per year. This tax would ultimately be based on a polluter-pays principle and the concentrated structure of the sector should facilitate its collection. While international negotiations are essential for adoption worldwide, the introduction of such a tax, or at least the end of the current tax exemption, does not contradict the Chicago Convention, which has laid the foundations for international cooperation in civil aviation since 1944. Although it alone cannot finance the climate change adaptation needs of countries in the South, the taxation of civil aviation fuels is an interesting avenue for short-term funding for vulnerable countries. In the longer term, such taxation would accelerate the low-carbon transition of the international civil aviation sector.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: FERDI Working Paper ; No. P318

Classification and Topics

• Classification: Wirtschaft
• Subject: Taxation ; Kerosene ; Civil aviation ; Loss and damage funds ; Financing for vulnerable countries

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dama, Alou Adessé ; Dequiedt, Vianney ; de Ubeda, Audrey-Anne ; Rota-Graziosi, Grégoire
• Event: Veröffentlichung
• (who): Fondation pour les études et recherches sur le développement international (FERDI)
• (where): Clermont-Ferrand
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/276971
• Last update: 10.03.2025, 11:42 AM CET