Airlines oppose Dutch plan to phase out EU fossil fuel…
A irline bosses are, unsurprisingly, opposed to a Dutch plan for an EU-wide phase-out of fossil fuel subsidies. They say it should not be introduced, while rail travel is so expensive, and the airline sector does not yet have low carbon fuels. The Dutch government announced last month that it spent up to €46.4bn in 2023 supporting the use of fossil fuels, either through direct subsidies or tax schemes that indirectly led to more polluting energies being used. More than €3.6bn went to airlines, as fuel supplied for use in aviation is currently fully exempt from taxation in the EU. The Dutch government is keen to reform the tax system and cutting subsidies was “crucial” to achieving a transition to lower carbon industries, and net zero by 2050. An EU proposal to update energy rules in 2019, which aimed to remove many fossil fuel subsidies, stalled as it requires unanimous approval from all 27 member states, which it is unlikely to get. The Dutch government introduced a cap on flights at Schiphol earlier in the year. . Tweet Airlines hit out over Dutch plan to phase out EU fossil fuel subsidies Ryanair boss labels proposals ‘pie in the sky’ until cheaper green travel alternatives are available By Alice Hancock in Brussels and Philip Georgiadis in London (FT) OCTOBER 16 2023 Airline bosses have criticised a Dutch plan for an EU-wide phaseout of fossil fuel subsidies, saying such a move will be fanciful until there are affordable greener travel alternatives. Ryanair boss Michael O’Leary and Lufthansa chief executive Carsten Spohr were among European airline executives who said at a briefing last week that train fares remained too expensive to replace air travel, and policymakers’ plans to make aviation more sustainable by cutting support would backfire. The Dutch government announced last month that it spent up to €46.4bn in 2023 supporting the use of fossil fuels, either through direct subsidies or tax schemes that indirectly led to more polluting energies being used. More than €3.6bn went to airlines, as fuel supplied for use in aviation is currently fully exempt from taxation in the EU. Rob Jetten, the Dutch climate minister, told the Financial Times that reforming the tax system and cutting subsidies was “crucial” to delivering the clean transition, and that governments should “redesign the rules of the market”. He added, however, that fossil fuel subsidies, particularly ones that resulted from international agreements such as for airlines and shipping, “need to be tackled from the EU level”. But O’Leary, the Ryanair boss, said: “Until you have some affordable alternative that you can offer to voters and to consumers across Europe, it’s all just pie in the sky.” [This, of course, ignores the need to reduce the demand for flying. People could choose not to travel so much. That is not an option the airlines want anyone to even consider. AW comment.] Ourania Georgoutsakou, managing director of the industry body Airlines for Europe, added that increasing fuel taxes for airlines would increase costs which “at some point will impact the passenger”. [Yes, exactly. That is the point. The aim is to make flying more expensive, so les
