500M Profit on Delayed CO2 Tax

Airplane pollutionAirline companies brought in extra revenue of Euro 486 million by passing on a surcharge to their customers despite an EU decision to freeze the carbon tax planned for the industry according to Transport and Environment (T&E).

The European Commission froze the carbon tax for a year on flights to and from non-European nations because of protests from the airline industry. The intention was to give the International Civil Aviation Organization (ICAO) more time to negotiate a global solution to aviation emissions.

But airlines have passed on the cost of meeting their pollution permits to passengers, despite 85% of their permits being allocated for free.

Euro 486M profit
A report compiled by the Dutch consulting firm CE Delft for T&E shows that Lufthansa made as much as Euro 53.6m in windfall profits, while Air France made Euro 51.5m and British Airways Euro 44.1m.

In total the airline industry made Euro 486 in profit from the carbon tax delay.

Buy 15% of emissions
The carbon tax on aviation was imposed by the EU in January 2012, but 26 of ICAO’s 36 members, including India, Russia, China and the US, opposed the move, saying it violated international law. The US Congress passed a law November 2012 shielding US carriers from paying the tax.

The EU tax forces airlines operating in the bloc to buy carbon credits for 15% of their carbon emissions – or 32 million tonnes – to help tackle global warming. The companies were due to pay their taxes this year.

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3 responses to “500M Profit on Delayed CO2 Tax

  1. Pingback: Norway Drops Mongstad Carbon Capture Plans | Arnfinn Oines·

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