Skip to main content

Aviation Industry

Volume 455: debated on Wednesday 10 January 2007

To ask the Chancellor of the Exchequer what estimate he has made of the likely cost to the aviation industry of paying the full cost of the contribution of emissions from aviation to climate change identified in the Stern Review. (113387)

The Government welcome the findings of the independent Stern Review on the “Economics of Climate Change” and continue to develop measures to tackle climate change.

As the Stern Review identified, climate change is an international issue and that is why the Government are committed to the inclusion of aviation within the EU Emissions Trading Scheme.

A joint March 2003 Department for Transport and HM Treasury report “Aviation and the Environment: Using Economic Instruments” provided estimates of monetary values of external costs relating to climate change, local air quality and noise. The cost of carbon emissions associated with UK passenger aircraft was estimated in the report at £1.4 billion in 2000, rising to over £4 billion in 2030 (using an illustrative value for the cost of carbon of £70 per tonne, rising by £1 per year in real terms).