Is fuel taxation a potential source of funding for vulnerable countries?

FERDI has studied the possibility of taxing the fuel used in civil aviation and maritime transport to support countries vulnerable to climate change.

For aviation, the study examines the constraints and opportunities for implementing a tax on civil aviation fuel, , which could generate between 5.8 and 18 billion euros a year. These funds could support measures to adapt to climate change and encourage a transition to greener transport. The conclusions were incorporated into the recommendations for the Summit for a New Global Financial Pact in June 2023.

For maritime transport, the study examines the economic effects of a carbon tax, assessing its impact on trade flows, consumer purchasing power, and CO2 emissions. Three major conclusions emerge: the tax affects countries unfairly, penalising poorer countries more; it has little impact on reducing CO2 emissions; and the tax resources generated are much lower than the associated economic costs. 

This analysis provides a quantitative basis for ongoing international discussions and negotiations.