September 25, 2007
The government has issued a consultation on its ‘Emissions Cost Assessment’. The assessment compares the social cost of aviation’s climate change emissions with the taxes it pays. The AEF is concerned that the assessment will be used to justify tax exemptions for the aviation industry.
According to the DfT, the object of Emissions Cost Assessment is to “compare the social cost of aviation’s climate change emissions with the extent to which the industry covers that cost. This information will then be used to help inform strategic decisions on future aviation policy.”
The cost of climate change emissions is an imporant factor, which is needed to inform public policy. In this respect AEF welcomes the study. However, we are very concerned that the study is intended to do more than that. The wording of the consulation implies that the costs will be used to assess whether the current taxes on aviation are adequate. This question cannot be answered by Emissions Cost Assessment.
See our initial view on the emissions cost assessment. Members thinking of responding to the consultation (closing date 31st Oct) are advised to contact us or look for the final position statement.