Turks and Caicos Islands

Climate policy
Figure 4.2.6: Fuel costs as part of a worldwide operating cost
51
(Source: IATA, 2009)
As described in the introduction climate change is high on the global political agenda, but so far, the
European Union is the only region in the world with a legally binding target for emission reductions,
imposed on the largest polluters. While it is likely that the EU Emission Trading Scheme (ETS) will not
seriously affect aviation, the only tourism sub-sector to be directly integrated in the scheme by 2012 (e.g.
Mayor and Tol, 2009, see also Gössling et al., 2008), discussions are ongoing of how to control emissions
from consumption not covered by the EU ETS. This is likely to lead to the introduction of significant carbon
taxes in the EU in the near future (EurActiv, 2009). Moreover, the EU ETS will set a tighter cap on emissions
year-on-year, and in the medium-term future, i.e. around 2015-2025, it can be assumed that the
consumption of energy-intense products and services will become perceivably more expensive. There is
also evidence of greater consumer pressure to implement pro-climate policies. While climate policy is only
emerging in other regions, it can be assumed that in the near future, further legislation to reduce emissions
will be introduced – the new air passenger duty in the UK is a recent example, and has already been
followed by Germany’s departure tax (as of January 1, 2011).
As of November 1, 2009, the UK introduced a new air passenger duty (APD) for aviation, which replaced its
earlier, two-tiered APD. The new APD distinguishes four geographical bands, representing one-way
distances from London to the capital city of the destination country/territory, and based on two rates, one
for standard class of travel, and one for other classes of travel (Table 4.2.6).