Fuel Taxation in Aviation

This report analyzes 32 Air Service Agreements (ASAs) among COFFIS member states to identify legal pathways for implementing aviation fuel taxes to support climate targets and fuel efficiency.

• The report identifies that while the 1944 Chicago Convention does not prohibit aviation fuel taxes, legal barriers can exist within bilateral and multilateral Air Service Agreements (ASAs). Of the 32 ASAs reviewed between COFFIS member states, none restrict fuel taxation for domestic aviation, but two categories of agreements require reform for international flights: those with full tax prohibitions and those with non-discrimination clauses.
• To overcome legal barriers to fuel taxation, the report suggests several pathways: reforming specific ASAs, issuing memorandums of understanding to clarify reciprocal exemptions, or utilizing a global or multilateral Joint Agreement for bulk reform. For European Union member states, the EU Energy Taxation Directive (ETD) is the primary legal barrier, which could be superseded by an international agreement introducing different fuel tax rules.
• Implementing a tax on aviation fuel is presented as a means to address the sector's contribution of approximately 2.4% of global annual carbon dioxide emissions by encouraging sustainable aviation fuels, improving fuel efficiency, and creating fairer competition with transport modes that have lower emissions.

APA

Culbert,, A. W. S. P. (2025). Fuel Taxation in Aviation. International Institute for Sustainable Development. https://www.iisd.org/publications/report/fuel-taxation-aviation

Chicago

Culbert,, Anne Wendenburg,Lukas Schaugg,Eduardo Posada,Vance. Fuel Taxation in Aviation. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/report/fuel-taxation-aviation.

Wikipedia

{{cite report |last1=Culbert, |first1=Anne Wendenburg,Lukas Schaugg,Eduardo Posada,Vance |title=Fuel Taxation in Aviation |publisher=International Institute for Sustainable Development |date=3 November 2025 |url=https://www.iisd.org/publications/report/fuel-taxation-aviation |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{culbert2025fuel, author = {Culbert,, Anne Wendenburg,Lukas Schaugg,Eduardo Posada,Vance}, title = {{Fuel Taxation in Aviation}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = nov, url = {https://www.iisd.org/publications/report/fuel-taxation-aviation}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }