Sir Richard Branson warns green taxes threaten to kill aviation

The Telegraph ^ | 12/16/2009 | Rowena Mason in Copenhagen

[bruinbirdman]

The owner of Virgin Atlantic flew to Copenhagen in support of a global deal to cut airline, shipping and other transport emissions, which make up 20pc of the world’s total. He wants the proceeds from such a system to support the rainforests and help developing countries tackle the effects of climate change.

But Sir Richard said he drew the line at a new global tax when the industry has suffered so much in the recession.

“The airline industry has suffered a 100pc increase in taxes by this Labour Government, which are not going to environmental causes, and the danger is that this would tax the industry out of existence,” he said. “That’s not the way forward.”

If global leaders do agree to impose a levy on shipping and airline fuels, Sir Richard urged the conference to exempt planes that use a high proportion of biofuels. He said that if no emissions trading was introduced to help airlines move gradually towards greener fuels, the industry should act alone by imposing a voluntary system and tough targets.

Emissions trading will be introduced for planes flying to and from Europe in 2012, which could mean the worst-performing airlines will see up to 80pc lower profits than the best-performing airline as a result of the system. But there are no restrictions in other parts of the world.

The aviation industry has moved to pre-empt penalties on emissions that could be imposed at Copenhagen by offering to peak its emissions by 2020.

Paul Steele, director of aviation environment at the International Air Transport Association, said there was support for an emissions trading system if introduced globally, but not more taxes.

“A blunt tax on aviation will do nothing to reduce emissions but will increase the cost of trade and tourism in the least-developed countries, affecting

[bmwcyle]

Another rich liberal sees reality too late.