Adrian Delia comes out against proposed taxation of aviation fuel

an increase in use of sustainable aviation fuel, Delia said that in principle he agrees that the EU would have measures in place that will seriously reduce air pollution over a number of years. But, he said, he does not agree with the idea that taxation is the solution.

Delia agreed with the position taken by Air Malta, with the national airline saying that the proposed aviation fuel tax would be detrimental to the Maltese economy.

He said that the Opposition and Air Malta have spoken out about the issue, but said: “The fact that government has not yet said anything preoccupies me.”

Another point raised by Air Malta was that the proposal will result in a serious distortion of competition between airlines that only serve the intra-EU market and airlines which also serve other markets.

Asked if he agrees with this line of thought, Delia said: “Yes I agree with this point as Malta as a country is cut off from the European continent geographically, so there aren’t alternative transport solutions.”

The solution is investment, he said.

“If you are going to increase tax, you will reduce airlines’ ability to

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invest. You should spur on airlines to invest in their aircraft to use alternative fuels and alternative energy, changing the model www.independent.com.mt with which planes travel by consuming alternative energy, and not tax them making them unable to make that investment.”

Air Malta, when it spoke about the issue a few days ago, made arguments that were very much on the same lines. The airline said that taxation is not the answer to aviation sustainability “and the reliance on taxation as the solution for cutting aviation emissions in the EU’s Fit for 55 is counterproductive to the goal of sustainable aviation – a tax will merely siphon much-needed funds from the industry that could support emissions reducing investments in fleet renewal, clean technologies and the transition to sustainable aviation fuels”.

It said that the EU should, instead, focus on production incentives for sustainable aviation fuels which reduce emissions by up to 80% compared to the traditional jet fuel. “Insufficient supply and the current high cost of SAFs will lead to limited airline uptake. Energy transitions are successful when production incentives drive down the price of alternative fuels while driving supplies up. The EU Fit for 55 proposal does not include direct measures on how to make SAF cheaper. Making SAF cheaper will accelerate aviation’s energy transition and improve Europe’s competitiveness as a green economy,” the airline had said.