Transport
Up to 70% of particulate emissions are attributable to the transport sector, with particularly high levels in developing countries. Transport is the fastest growing source of GHG emissions. Without effective mitigation, GHG emissions from transport are predicted to grow 71% by 2050, threatening to outweigh climate action in many other sectors. These negative impacts are often not reflected in fiscal policy frameworks, resulting in market failures which can be addressed by green fiscal policy.
Policymakers can address these market failures and enhance the sustainability of the transport sector and related activities through a wide range of green fiscal policy instruments. Typically, these instruments are most effective when implemented as packages of measures that include regulation, standards and softer instruments, such as information. Green fiscal policies in the sector include reform of environmentally harmful subsidies and incentives, carbon-energy taxes on transport fuels, maritime fuel levies, kerosene taxes on internal flights, circulation taxes on the basis of vehicle emissions, road tolls and congestion charging, feebate systems for vehicle registration and air ticket taxes, amongst others.
Such measures can encourage modal shift to sustainable and healthy transport modes, such as walking, cycling, and public transport, and incentivize cleaner and more efficient means of transport, such as electric vehicles, hybrids and CNG vehicles. Green fiscal policies can deliver a range of co-benefits alongside reduced GHG emissions, including enhanced energy efficiency, improved air quality, better human health outcomes, and reduced noise-pollution and congestion. Revenues raised can be used to fund investment in public transport infrastructure and sustainable transport systems.
News

Victoria’s electric vehicle tax could reduce clean car sales by 25%, researcher says
A charge on electric cars is ‘completely incongruent’ with states’ targets of reaching net zero emissions by 2050, Dr Jake Whitehead says Victoria’s planned road

Germany to extend electric car subsidies to 2025
BERLIN (Reuters) – Germany will extend its enviromental subsidy for electric cars until 2025, government and auto industry sources told Reuters on Monday, a day
Joe Biden’s election could give Elon Musk the carbon tax he’s wanted for years
Elon Musk called for a carbon tax in Paris in 2015 during COP21, the United Nations Climate Change Conference. Then Donald Trump won the presidential
Reports

OECD new report includes environmental sustainability considerations (IISD)
The IISD’s piece on the new OECD report, Going for Growth 2019, highlights the fact that, for the first time, the report explicitly includes environmental

Going for Growth 2019 (OECD)
Slow growth, high uncertainty and rising levels of inequality should prompt policy makers to take urgent action to achieve stronger, sustainable and more inclusive growth,

Taxes in the Field of Aviation and their Impact
A recently published report on “taxes in the Field of Aviation and their impact” makes an inventory of taxes in the EU and selected non-EU
Policy Briefs

Towards a European Fuel Tax agreement (GBE and T&E)
This briefing by Green Budget Europe (GBE) and Transport and Environment (T&E) discusses how to cut diesel tax competition in Europe. In particular, it explores how