Source · Select Committees · Environmental Audit Committee
Recommendation 24
24
Accepted
Aviation sector's carbon emissions are not fully paid for, creating artificial cheapness.
Conclusion
The aviation sector does not fully pay for its carbon emissions, whether this is through the lack of a direct carbon tax, VAT on its fuel, or the greater benefits it receives through the Emissions Trading Scheme compared to other high emitting sectors. This makes aviation artificially cheap and provides the industry with benefits other essential sectors do not benefit from. (Conclusion, Paragraph 111)
Government Response Summary
The government stated that it drives decarbonisation through existing carbon pricing schemes like the UK ETS and CORSIA, which align with the ‘polluter pays’ principle, and committed to reviewing the treatment of Sustainable Aviation Fuel under the UK ETS.
Government Response
Accepted
HM Government
Accepted
The Government is driving cost-effective decarbonisation of the aviation sector through carbon pricing schemes, including the UK ETS and CORSIA. These schemes are aligned with the ‘polluter pays’ principle, whilst giving businesses the flexibility to decide how to decarbonise cost-effectively, incentivising technology-agnostic emissions reductions. For aviation, the UK ETS covers flights within the UK, between the UK and Gibraltar, and from the UK to the European Economic Area and Switzerland. The UK ETS emissions cap is aligned with a net zero trajectory, which will incentivise decarbonisation including through a robust carbon pricing signal. The Government is already using the UK ETS to support the use of SAF. Airlines using eligible SAF can reduce their obligations to purchase UK ETS emissions allowances. Furthermore, the UK ETS Authority committed to review the treatment of SAF under the UK ETS, in the context of the introduction of the UK SAF Mandate, and intends to consult on options in due course. For international flights, carbon pricing requires cooperation with other governments and the Government is committed to global action on aviation decarbonisation through international processes. The DfT will continue to use our influence at ICAO to push for the implementation and strengthening of existing measures, such as CORSIA, in support of net zero 2050.