CleanTechnica•about 1 month ago
European Long-Distance Passenger Transport — VAT Gap Analysis
Key Takeaway
The EU is considering removing VAT exemptions for carbon-intensive aviation and shipping, signaling a potential policy shift that could increase transport costs and indirectly influence energy demand and industrial location decisions.
AI Summary
- •The EU is actively consulting on removing VAT exemptions for highly carbon-intensive long-distance aviation and shipping, which currently benefit from significant tax breaks, signaling a strong policy push to internalize environmental costs.
- •Removal of these exemptions would increase operational costs for aviation and shipping, potentially shifting demand towards less carbon-intensive transport modes (e.g., electrified rail, road transport) or incentivizing localized supply chains.
- •For power developers, this could create new opportunities for electrification projects (e.g., charging infrastructure for electric trucks/ships, rail electrification) and potentially increase industrial electricity demand in regions benefiting from localized production. Large power consumers should monitor these policy changes as they could impact supply chain costs and energy strategy.
Topics
emissionspolicy
Article Content
T&E Contribution to the European Commission’s Public Consultation on VAT Rules for Travel and Tourism Sectors. Summary Despite being some of the most carbon-intensive modes of transport, aviation and shipping continue to benefit from some of the most generous tax exemptions in Europe. One of the most significant of these ... [continued] The post European Long-Distance Passenger Transport — VAT Gap Analysis appeared first on CleanTechnica .