Options for regulating the climate impacts of aviation

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Aviation is the most environmentally-damaging mode of transport and contributes substantially to global warming. At the same time, aviation enjoys numerous privileges compared to other modes of transport. Kerosene is exempt from the energy tax and no VAT is charged on flights that cross German borders. In the European Union’s Emissions Trading System, aviation receives a large share of allowances free of charge. Against this background, there is an urgent need for action to further develop existing measures for reducing emissions in aviation or to introduce new measures. This study makes clear the privileged treatment of aviation compared to other modes of transport and develops concrete recommendations for regulatory options for aviation on national, European and international levels. These include the increase and the reform of the air ticket tax, the introduction of a minimum tax rate on kerosene on an EU level and a full auctioning of allowances for aviation within the scope of the upcoming reform of the EU ETS.