European Union countries are considering a 10-year delay in introducing EU taxes on aviation and shipping fuels, as they attempt to push through long-stalled energy tax reforms.
The European Commission proposed an overhaul of the EU’s energy tax rules in 2021, aiming to align them with broader climate goals. According to Reuters, this included the gradual introduction of taxes on carbon-emitting fuels used for flights and shipping within the European Union, sectors that currently benefit from exemptions to EU-wide minimum tax rates.
However, the proposal has faced resistance from member states. According to the draft negotiating text seen by Reuters, governments are now considering maintaining the existing tax exemptions for aviation and shipping fuels for another 10 years.
“In 2035, the Commission should examine the possibility of taxation of air navigation and waterborne navigation and propose amendments to this Directive, where appropriate,” the draft states.
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EU negotiators are expected to discuss the proposed compromise during a meeting in Brussels on 5 September. Under the draft, only small aircraft and boats classified as “private pleasure craft” may face taxes before the 10-year exemption period ends.
Climate campaigners have long advocated for reforms that would shift incentives toward cleaner fuels and away from the most polluting and least energy-efficient ones. According to EU diplomats, countries with significant shipping or tourism industries have been among the most vocal opponents of the changes.
