Brussels, 17/09/2001 (Agence Europe) - The European Transport and Environment Ministers, meeting in Informal Council on Saturday in Louvain-la-Neuve, urged for the European Union to defend the idea of harmonising the tax on kerosene in the context of the International Civil Aviation Organisation (ICAO). "Several delegations stressed the need to study the terms of such an initiative at the level of the European Union should things fail at international level", said Belgian Environment Minister Magda Alvoet, after the debates. The 30 Environment and Transport Ministers were invited to rally within their government for the Ecofin Council to resume the energy tax issue, on the table since 1997, added Belgian Transport Minister Isabelle Durant. The Informal Council, moreover, invited the Commission to present, before too long, "proposals of directive on fair pricing of infrastructures, as announced in the White Paper on common transport policy in the run up to 2010".
During this first joint Transport/Environment Council since the British Presidency in 1998, the ministers were to define a common line for ensuring sustainable development of transports through "better intermodal balance" and "fairer pricing of transport". Domingo Jimenez-Beltran, Director of the European Environment Agency, had set the backdrop for the debate that morning, by presenting the alarmist results of the Agency's report on transport and the environment (see EUROPE of 14 September, p.9). "It is foreseen that CO2 emissions in the transport sector will rise 40% by 2010, while the Kyoto Protocol requires that the EU reduce its greenhouse gas emissions by 8%", recalled Magda Alvoet, for example. "Despite the constraints on action that we encounter, we must find ways to manage the growth of transport and to ensure that it is mainly to the advantage of the most environmentally-friendly modes of transport", added Isabelle Durant. With this in mind, the Presidency had proposed that ministers should focus their discussions on aims, on pricing and on coordinating policies.
Aims: The ministers were questioned on the relevance of the target fixed by the Commission in its White Paper on transport policy, that is, to bring the market shares of the different kinds of transport in 2010 down to their 1998 level, which implies a 38% increase in road transport, instead of a 50% increase without intervention. "It would already be a big move forward to stop the decline in rail transport", said Transport Commissioner Loyola de Palacio, who assured that, at any rate, the aims set for 2010 are only one stage in an ongoing process. "In the long term, we shall be forced to develop policies other than the changes in breakdown between the different modes of transport in order to control the growth of pollution", she said. Modal balance in 2010 is "one of the several measures that will contribute to the long term target", said Environment Commissioner Margot Wallström.
"The majority of delegations are in favour of defining an indicative and flexible objective rather than a binding objective", said Isabelle Durant. "There is convergence between the Transport and the Environment Ministers on this point. Several ministers, however, insisted on the need to take into account the particularities of the transit countries in particular, and the social and economic consequences of transport", she added. "Three or four delegations felt that the 1998 target was too low, but no-one said it was inaccessible", added Magda Alvoet.
According to convergent sources, the "transit" countries such as Germany, France or Belgium, but also Sweden and Denmark, are in favour of greater voluntarism, while Spain, Italy and Greece are said to have been more cautious (it should nonetheless be noted that the Italian environment minister was not at the meeting). The Netherlands is reported to have had doubts of a "philosophical" nature as to how appropriate it was to set indicative targets. "The 1998 objective is insufficient, while the date 1990 corresponds to the aim fixed in the context of the Kyoto protocol", Yves Cochet, French Environment Minister, told the press. Belgian Environment Minister Magda Alvoet nonetheless rectified the line of fire by stating that the aim of Kyoto (1990) concerns gas emissions, while the 1998 target concerns global distribution.
Pricing. The ministers were invited to give a first opinion on the economic measures proposed by the Commission in its white Paper on transport policy, pending the formal debate at the Transport Council of 15 October. "In order to reduce modal imbalance, we cannot now avoid deciding on an effective pricing policy", said Transport Commissioner Loyola de Palacio. "A large number of delegations is in favour of defining a common pricing policy" for access to transport infrastructures, said Magda Aelvoet. "At the present time, the price signals perceived by users do not reflect the reality of the cost of the various modes of transport. Action at Community level is unavoidable", said Isabelle Durant, who noted that the internalisation of transport costs (i.e. integrating the social cost of pollution and traffic jams) "must also be gradual so that it is not detrimental to the economy, and must be supported by flanking social measures". The pricing instrument is not enough in itself, added Magda Aelvoet, who pointed out that the ministers also insisted on the need to take social conditions into account, as well as the existence of any real alternatives, the international context and the public's support for measures.
The Netherlands were even firmer in urging for the current Eurovignette (which imposes a yearly payment on certain European routes) to be replaced by a price per kilometre. They stressed that they will themselves be introducing legislation along these lines which may serve as a test at European level. In favour of the idea of a Community framework for transport pricing, the United Kingdom insisted on the need to get this message across to the public and to ensure the visibility of the environmental measures taken. Among the "peripheral" countries, Sweden and Portugal are in favour of creating a Community framework for pricing. Italy, Spain, Finland and Ireland, on the other hand, are opposed to the idea of fixing a "rigid framework" until there are alternative infrastructures to roads, said the Spanish Minister for Industrial Development, Francisco Alvarez Cascos. "We have different problems and realities and, in order to reach common objectives, we need to take different roads", said the minister cited by the EFE Agency. Routes in Spain may be as long as "1,000 km that is unheard of in Belgium and Holland. Our geography means that each kilometre costs more", he insisted.
Despite these differences, the Belgian Council Presidency invited the Commission to present, after the debates and within a reasonable time, proposals for a framework directive on pricing. The proposal should be ready towards the middle of the year 2002, on the basis of indications given in the White Paper of 1998 on fair transport pricing and the Costa Report adopted by the European Parliament, it is pointed out at the Commission.
Tax on kerosene. The ministers raised the question of harmonising the tax on air fuel, kerosene, in a debate on pricing. British Minister Mr Maecher was the first to tackle the question, stressing that it is not fair that road and rail transport should pay tax on their fuel when air transport is dispensed from such tax. The United Kingdom urges, in this matter, for a common framework at international level. The Netherlands, Germany and Sweden followed along the same lines, it appears. On behalf of the competitiveness of the European air industry, Italy insisted that all harmonisation should be at international level, within the ICAO. French Environment Minister Yves Cochet did not rule out action at European level if there is no international agreement. Finland and several delegations nonetheless stressed the practical difficulties that harmonisation at European level alone would cause. "Planes would land in Saint Petersbourg rather than in Helsinki", said the Finnish minister.
"We agree in saying that the matter should be raised at the International Civil Aviation Organisation (ICAO) and several Member States felt that, if an international agreement does not allow the situation to be addressed, then something must be done at European level", summarised the Belgian Environment Minister, Magda Aelvoet. In its summary of the debates, the Belgian Presidency therefore pointed out that the EU will tackle the issue during the next IACO General Assembly, to be held from 25 September to 5 October. It also invites the Ecofin Council to resume work on the energy tax proposals, presented in 1997 by the Commission. "We hope at least to reactivate the debate. Is it possible to do something for kerosene? It will not be easy, but the question must not be evaded", said Isabelle Durant. She felt that the financial difficulties that air companies will endure following the attacks on New York must not block this debate in the long term.
The "tax on energy" covering excise on mineral oils is blocked for the time being by resistance on the part of Spain, Italy and Greece, which invoke the impact that such harmonisation would have on their "peripheral" industry. The United Kingdom also expresses its more general opposition to tax harmonisation at European level, it is recalled at the Commission. The harmonisation of kerosene taxation is blocked at the IACO by the United States, which has nonetheless introduced a partial tax on some freight transport on internal flights, the Commission also recalls.
Policy coordination instruments. Invited to reflect on the ways to develop integration of environment and transport policies, the ministers approved the role of the group of transport/environment experts set in place by the Commission. "On the basis of discussion, the Presidency encourages the European Commission to entrust this group with the task of following up the implementation of the integration strategy and to produce regular recommendations on this subject", the Presidency summarised.