Carbon News
  • Members
    • Login
      Forgot Password?
    • Not a member? Subscribe
    • Forgot Password
      Back to Login
    • Not a member? Subscribe
  • Home
  • New Zealand
    • Politics
    • Energy
    • Agriculture
    • Carbon emissions
    • Transport
    • Forestry
    • Business
  • Markets
    • Analysis
    • NZ carbon price
  • International
    • Australia
    • United States
    • China
    • Europe
    • United Kingdom
    • Canada
    • Asia
    • Pacific
    • Antarctic/Arctic
    • Africa
    • South America
    • United Nations
  • News Direct
    • Media releases
    • Climate calendar
  • About Carbon News
    • Contact us
    • Advertising
    • Subscribe
    • Service
    • Policies

Big hike in airfares needed to achieve aviation emission reductions: experts

12 Feb 2024

By Jeremy Rose

A return airfare to Europe would jump by around $900 if GST and greenhouse gas levies were applied to international air travel, one of the proposals in a recent paper by four climate researchers.

The paper, An Aviation Reduction Plan for Aotearoa, points out that aviation is the only major sector of the country’s economy currently making commitments - such as purchasing new planes and expanding airports - that are almost certain to increase emissions.

 

Aviation makes up a total of 12% of New Zealand’s CO2 emissions compared with the oft-cited international figure of 2 -5%. 

 

And with aviation emissions increasing both domestically and internationally while other sectors are cutting theirs, that percentage is only going to increase.

 

Domestic aviation emissions in the September 2023 quarter were 41% above the pre-Covid (2012-2019) average and are approaching record highs.

 

 

 

 

New Zealand’s consumption of aviation fuel for international flights - four times that of domestic flights -  looks to be heading back to pre-covid levels.

 

And while New Zealand’s international flights account for the bulk of our emissions, we’re also heavy users of domestic aviation - coming in at fourth in the world for domestic per capita aviation emissions: three times higher than those of Sweden, eight times those of Finland, five times greater than the UK and a massive 45 times those of Austria.

 

All of those countries have more extensive and regular rail networks than New Zealand.

 

 

 

Professor Robert McLachlan, one of the paper’s four co-authors, says that with international aviation emissions doubling every 12 years - and no sign of that slowing down - aviation simply isn’t sustainable.

 

The paper identifies seven strategies for reducing New Zealand’s aviation emissions. The first of which is improved pricing.

 

Time to end aviation's free ride

 

McLachlan says New Zealand prides itself on having a fair GST system because it applies to everything - but there’s an exception for international air tickets and domestic flights connecting to them.

 

“So it’s sort of outrageous that there’s this expensive, luxury item that it doesn’t apply to. On a fairness level that’s pretty inexcusable.”

 

The exception is due to a 1944 international convention that exempted tax on kerosene and agreed there would be no value added taxes on tickets in an effort to stimulate growth in the international aviation industry.

 

The paper argues it’s time to ditch the exemptions.

 

McLachlan says New Zealand could add a carbon price to outgoing flights “but you also want to work with other countries to get some sort of level playing field.”

 

Currently someone driving from Wellington to Auckland pays for the carbon via petrol and someone taking a bus or train pays GST plus their portion of the carbon charge on any fossil fuels consumed but someone flying to Auckland to catch an international flight pays no GST and the jet’s fuel isn’t taxed.

 

The most polluting form of transport is in effect receiving a hefty subsidy.

 

If GST was applied to a return ticket to Europe costing, say, $3000 it would add $450 to the cost, and if aviation was to be included in the emissions trading scheme (ETS), as proposed in the paper, with an NZU price of around $80 that would add another $240. If the non-CO2 impacts of flying (radiative forcing) were included at the same rate that would double to $480.

 

Adding a grand total of $930 to the price of a return ticket.

 

Using the same assumptions, a $600 return flight to Sydney would attract $90 in extra fees. Domestic flghts are already subject to both GST and the ETS but not the non-C02 impacts. (Radiative forcing, not specifically mentioned in the paper, would add about $8 to a return flight between Auckland and Wellington.)

 

McLachlan says that adding a carbon price to international airfares wouldn’t solve the problem but it would be a start.

 

The authors considered the idea of a frequent flyer levy - as argued for by the former chair of Air New Zealand's sustainability advisory panel, Sir Jonathan Porritt, in Carbon News last week - but McLachlan says in the end they didn’t think it was realistic.

 

He says if there were no social constraints and you could wave a magic wand it would be worth considering - and could well be popular with the majority of the population which rarely flies.

 

About 20% of passengers are what could be called frequent flyers and they’re the ones who cause by far the most emissions.

 

The average New Zealander does just one and half domestic trips a year but frequent flyers are taking 20 or 30 flights annually including overseas trips.

 

"Current household greenhouse gas emissions are around 9 tonnes per person; for a 1.5C future these should drop to 2.5 tonnes by 2030," McLachlan says.

 

Carbon budgets for aviation

 

A return flight to Europe clocks in at three tonnes per passenger and with aviation efficiency gains of just 1% per year there’s no way large numbers of New Zealanders can regularly take long distance flights without emitting way more CO2 per capita than is sustainable on a global level.

 

But New Zealand’s international aviation isn’t covered by existing carbon budgets, something the paper suggests needs to change.

 

It says the easiest thing to do would be do what the UK is doing and simply add it to its existing budgets. But it advises against this on the grounds that could increase carbon inequality with frequent flyers willing to bear the cost of higher airfares and crowding out other sector.

 

Pausing airport expansion

 

McLachlan says probably the single most important recommendation in the report is placing a pause on airport expansions.

 

“We’re really at a critical point. The Tarras airport proposal [in Central Otago]l, of course, has to be stopped. But all of the airports are planning major expansions in capacity. They’re doing this before there is an aviation emissions plan in place.

 

“They’re trying to jump the gun and get in while they can.”

 

He says there’s an urgent need for a national strategy.

 

Currently there is no national strategy, with individual councils deciding whether airports are allowed to expand or if new airports can be built.

 

Other recommendations in the report are: investment in low-carbon domestic transport options - such as inter-regional rail; public communication campaigns to encourage people to fly less, and improved emissions intensity.

 

What about private jets?

 

McLachlan says there’s not enough data to know how much private jets are contributing to emissions but his gut feeling is that it’s smaller compared to Europe and the US.

 

Queenstown Airport has released figures with 493 private jet movements in 2023 -  a new record.

 

Helicopters may also contribute significantly to domestic aviation emissions, and can be a nuisance in some areas, but more research is needed, he says.

 

An Aviation Reduction Plan for Aotearoa, written by McLachlan, economist Paul Callister, epidemiologist Professor Alistair Woodward, and environmental sociologist Kirsty Wild ends with the following observation:

 

“No professor, chief executive, airline sustainability champion, or climate activist is under any illusion about the challenges involved in regulating a source of pollution. But the ICAO declaration, the ongoing Paris Agreement process, and the worsening climate crisis all point to a rapidly closing window of opportunity for genuine action on aviation. Aotearoa, as a stand-out beneficiary of aviation, has more to gain from timely and orderly action, and may also, through its State Action Plan and other diplomatic efforts, foster more coordinated global action.”


Story copyright © Carbon News 2024

Related Topics:   Airlines Aviation

More >
New Zealand
More >

Govt's RMA overhaul sparks fears for nature and climate

Fri 30 May 2025

By Shannon Morris-Williams | The Government has opened public consultation on the biggest overhaul of environmental planning rules in New Zealand’s history, with critics warning it puts nature and climate at risk in favour of fast-tracked development and industry expansion.

Could ‘orange’ hydrogen be NZ’s key to net-zero?

Fri 30 May 2025

By Liz Kivi | New Zealand could be sitting on resources for a thriving multi-billion-dollar, low-carbon hydrogen economy, which might even be capable of creating a net reduction of carbon dioxide, according to scientists.

Fight over coal mine heats up

Fri 30 May 2025

Forest & Bird is calling on the government to create a new scientific reserve covering the Denniston Plateau on the West Coast, which would stop a fast-tracked coal mine.

Energy Minister Simon Watts addressing the CEP conference in Auckland this week

Watts talks big on energy reform, but barriers persist

Thu 29 May 2025

By Shannon Morris-Williams | Energy and Climate Change minister Simon Watts says the government is doubling down on efforts to boost renewable energy generation, streamline regulation, and drive private sector investment as New Zealand faces mounting energy security and affordability challenges.

While govt ‘refreshes’ fund for low carbon trucks, are transport emissions set to accelerate?

Wed 28 May 2025

By Liz Kivi | The government has announced it is updating the Low Emissions Heavy Vehicle Fund, however cuts to funds to decarbonise transport in last week’s budget, and potential changes to road user charges, could stall transport emissions reductions.

Electrification challenge for politicians, regulators

Tue 27 May 2025

Rewiring Aotearoa is calling for stronger political leadership to bring its vision of a cheaper, cleaner and stronger energy system to life, with the launch of its policy manifesto today.

Business NZ Energy Council executive director Tina Schirr

‘More needs be done’ to restore energy market confidence: Energy Council

Tue 27 May 2025

The Business NZ Energy Council (BEC) welcomed the Government’s gas announcement as signalling “willingness to deal with parts of the issue from an energy supply perspective and aims to rebuild confidence in the sector”.

Kiwi cleantech companies on the world stage

Tue 27 May 2025

Six New Zealand 'cleantech' companies were in Singapore earlier this month, along with a venture capital firm and the MacDiarmid Institute, to meet investors and multinational partners.

Resources minister Shane Jones

Govt consulting on hydrogen

Mon 26 May 2025

The government is consulting on proposed regulatory options for the development of naturally occurring and orange hydrogen.

Nelson mayor Nick Smith

Nelson backs ‘ambitious’ emissions target, but mayor nervous

Mon 26 May 2025

By Max Frethey, Local Democracy Reporter | Nelson’s mayor has been accused of “pouring cold water” on ambitious greenhouse gas emission targets proposed for the city.

Carbon News

Subscriptions, Advertising & General

[email protected]

Editorial

[email protected]

We welcome comments, news tips and suggestions - please also use this address to submit all media releases for News Direct).

Useful Links
Home About Carbon News Contact us Advertising Subscribe Service Policies
New Zealand
Politics Energy Agriculture Carbon emissions Transport Forestry Business
International
Australia United States China Europe United Kingdom Canada Asia Pacific Antarctic/Arctic Africa South America United Nations
Home
Markets
Analysis NZ carbon price
News Direct
Media releases Climate calendar

© 2008-2025 Carbon News. All Rights Reserved. • Your IP Address: 216.73.216.210 • User account: Sign In

Please wait...
Audit log: