EU environmental taxes on flying are unfair to ordinary air passengers, according to Minister of State at the Department of Transport Jack Chambers.
European short-haul passengers, including families flying to the sun for their holidays, pay more for the carbon emitted by their flights than those on longer journeys to the US or Asia.
Speaking to the Oireachtas Joint Committee on Transport and Communications, Mr Chambers agreed that the rules “give an advantage to central European airlines that are flying long haul with lots of business-class seats” compared with “ordinary passengers” flying short haul.
The Irish economy has grown rapidly in recent years, how long can it continue?
Mr Chambers pointed out that the European Commission was reviewing the rules and could change them in 2026 to impose environmental levies on all flights taking off from the bloc, irrespective of destination.
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“There is a mismatch there,” he said. “I think it’s welcome that the EU Commission is going to review it in 2026.”
Separately, Independent Senator Gerard Craughwell warned that the pending court case over the department’s decision to award the State’s search and rescue contract to US group Bristow would end up costing taxpayers money.
Current provider CHC has challenged the decision to award the €800 million contract to its rival, going to the High Court arguing that the process was flawed.
Mr Chambers said he could not comment on the issue as it was before the courts.
Earlier, the Minister told the meeting that department officials were weighing the possibility of locating a sustainable aviation fuel production plant in the Republic.
Sustainable aviation fuel, made from waste oil or plants, is key to cutting air travel greenhouse gas emissions.
Sustainable aviation fuel
The EU wants 65 per cent of aviation fuel to be sustainable by 2050 but needs 100 new production plants to achieve this.
“My department is assessing the potential for local production of sustainable aviation fuel,” Mr Chambers told the committee.
Responding to questions from Fine Gael Senator Regina Doherty, the Minister said the department had made no decision on the location or size of any likely factory.
However, he pointed out that at present, just 0.05 per cent of aviation fuel used by EU airlines is sustainable.
“So there’s a huge amount to go when it comes to scaling up production,” he added.
Mr Chambers noted that Irish airlines Aer Lingus and Ryanair had set their targets and had deals with suppliers.
Aer Lingus is aiming for 10 per cent sustainable fuel by 2030 while Ryanair intends to get to 12.5 per cent.
