Airlines alarmed by fuel tax idea

FT.com / World /: I guess this gives a fairly clear in a nutshell idea of the dilemma over carbon emissions and fuel. For international trading there need to be fairly consistent and across-the-board standards, and yet something needs to be done.



"European carriers are concerned that a kerosene tax, suggested last week by Jacques Barrot, the incoming transport commissioner, would distort competition among international airlines and increase the industry's cost burden when it is already struggling to cope with the surge in oil prices. Any move by Mr Barrot to seek to impose a jet fuel tax could threaten the UK-led initiative to use emissions trading rather than taxation to address the impact of aviation on climate change."



So the other mechanism could be emissions trading, which, given that it is already an international market [although at early stages] might at least stand some chance at acting as a break on air travel and a producer of greater efficiencies. I'm on the look out for fuller analyses of this, so if you find something, let me know.