House Rejects EU Aviation Tax

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Key Takeaways:

  • The U.S. House of Representatives overwhelmingly passed a bill prohibiting American airlines and general aviation operators from complying with the European Union's proposed carbon tax on flights to/from EU countries.
  • The U.S. argues that global aviation environmental standards should be determined by the International Civil Aviation Organization (ICAO), rather than being imposed unilaterally by the EU.
  • Despite U.S. opposition and the new House bill, the EU maintains it will enforce its carbon rules starting January 1st, a stance previously upheld by Europe's top court.
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Representatives from both parties in Washington agreed on something this week — the European Union shouldn’t be allowed to unilaterally impose a carbon tax on aircraft flying there from the U.S. On Tuesday, the House of Representatives passed a bill that prohibits all U.S. airlines and general aviation operators from taking part in such a scheme, NBAA said. “Global aviation standards are overseen by the International Civil Aviation Organization,” said NBAA President Ed Bolen, “and any new standards should be decided by ICAO.” The EU, however, said it intends to enforce its carbon rules, despite the U.S. opposition.

The top court in Europe has already rejected a complaint from U.S. and Canadian airlines that the tax would violate international law, according to the Washington Post. The EU program is scheduled to take effect on January 1, charging a carbon tax on all aircraft operations that overfly or land in an EU country. The amount of tax would depend on the type of aircraft and the distance flown. The House bill passed “overwhelmingly” on a voice vote, according to NBAA. The Senate has not yet addressed the issue, and it’s unclear whether it would gain enough support to pass there, according to Reuters.

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