Fuel Taxation in Aviation

The report analyzes 32 Air Service Agreements (ASAs) among COFFIS member states, finding that while the Chicago Convention does not prohibit aviation fuel taxes, specific bilateral and multilateral ASAs may create legal barriers. It identifies two categories of agreements requiring reform: those with full tax prohibitions and those with non-discrimination clauses. The report suggests that while bilateral reforms are possible, a global or multilateral Joint Agreement would be a swifter method for bulk reform. For EU member states, the EU Energy Taxation Directive (ETD) is the primary barrier, though an international agreement could override it. The report also includes emission quantifications and revenue estimates for three UK-based ASAs.

• The 1944 Convention on International Civil Aviation (Chicago Convention) does not prevent the introduction of aviation fuel taxes, but legal obstacles 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 require reform for international flights: those with full tax prohibitions and those with non-discrimination or similar clauses.
• To overcome legal barriers to aviation fuel taxation, the report recommends that countries reform ASAs containing prohibitions or non-discrimination provisions, or issue memorandums of understanding to clarify that reciprocal exemptions are not legal barriers. A multilateral Joint Agreement among a 'coalition of the willing' is identified as the most effective and swiftest way to achieve bulk reform of tax provisions across various ASAs.
• For member states of the European Union, the EU Energy Taxation Directive (ETD) serves as the primary legal barrier to fuel taxation; however, an international agreement introducing different rules would take precedence over the ETD.

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} }