The EU explores delaying taxes on jet fuel pollution

EU might delay jet fuel pollution tax: The European Union is mulling a 20-year delay in implementing EU-wide taxes on polluting aviation fuels, Reuters reported on Friday, citing a draft document it has seen. Due to the current lack of sustainable alternative fuels (SAF), taxing aviation fuels would only lead to higher air ticket prices without significantly reducing fossil fuel use, the draft suggests. The draft compromise, prepared by Hungary which holds the EU’s rotating presidency, will be discussed by EU diplomats later this month, and is part of ongoing negotiations to reform energy tax rules, initially proposed by the European Commission in 2021.

The details: Small aircraft and private boats would face minimum EU taxes before the 20-year period ends, while other aircraft and vessels could be subject to national levies at the discretion of individual countries. Climate campaigners, however, argue that a 20-year delay contradicts the EU’s goal of achieving net zero emissions by 2050.

IN OTHER EU NEWS- Ghana to track cocoa-related deforestation: Ghana is launching a pilot program tracking cocoa beans from farm to port in preparation for a new EU law aimed at combating deforestation, Reuters reported last week, citing a government official. Under the law, EU importers of commodities including coffee, cocoa, soy, palm, timber, beef, and rubber could face fines up to 4% of their turnover if they do not prove supply chains do not contribute to deforestation. In a bid to protect exports, Ghanaian cocoa regulator Cocobod has successfully mapped all cocoa farms in Ghana and established an end-to-end traceability system. The move is crucial for Ghana, as the cocoa industry employs about 17% of the country’s workforce and 60% of its cocoa exports go to the EU.

Siemens Energy continues sales of 4.X wind turbines following quality crisis: Germany’s Siemens Energy has restarted sales of its 4.X wind turbines, which were at the center of a major corporate crisis last year costing it EUR 1.6 bn, Reuters reported on Thursday. Initially, sales will be limited to select markets, primarily in Southern Europe and the firm will also resume sales of the 5.X turbine model in 2025. This follows a root cause analysis of the quality issues by the company’s subsidiary Siemens Gamesa.

REMEMBER: Siemens took a huge blow after major faults were found in wind turbines: Siemens Gamesa found a “substantial increase in failure rates of wind turbine components” last June. The technical issues identified affected 15-30% of the more than 132 GW worth of turbines used in wind plants worldwide.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• ADB to allocate half of annual lending to climate finance: The Asian Development Bank has pledged to allocate half of its annual lending — USD 100 bn of which 30 bn has already been invested — to cumulative climate finance between 2019 and 2030. The new strategy is an update from the previous 35% pledge. (Reuters)
• BMW to launch hydrogen car in 2028: Using fuel cells developed with Toyota, BMW is planning to launch its first hydrogen-powered car in 2028. The car would be a version of an already existing model but price and production value were not disclosed. (Reuters)