Fossil Fuel Subsidy Reform in Aviation and Shipping

The briefing outlines how international agreements and industry pressure maintain fossil fuel subsidies in aviation and shipping, leading to higher emissions and market distortions. It recommends that countries tax domestic aviation and shipping fuels, reform legal barriers like the Energy Taxation Directive and air service agreements, and advocate for stringent international emissions levies through the ICAO and IMO, specifically suggesting a shipping levy exceeding USD 100 per tonne of CO2.

• Fossil fuel subsidies in aviation and shipping are maintained by industry pressure, global competition, and international agreements, resulting in increased greenhouse gas emissions and an uneven playing field across transport modes.
• Aviation fuel taxation is limited by international air service agreements and the European Union's Energy Taxation Directive (ETD), though domestic flights generally lack legal barriers to such taxes.
• The International Maritime Organization is expected to establish an emissions levy later in the year; the document recommends a rate exceeding USD 100 per tonne of carbon dioxide to fund ship efficiency, low-emission fuels, and climate finance for the Global South.

APA

Wendenburg,, E. P. C. (2025). Fossil Fuel Subsidy Reform in Aviation and Shipping. International Institute for Sustainable Development. https://www.iisd.org/publications/report/fossil-fuel-subsidy-reform-aviation-shipping

Chicago

Wendenburg,, Eduardo Posada,Vance Culbert,Anne. Fossil Fuel Subsidy Reform in Aviation and Shipping. International Institute for Sustainable Development, 2025. https://www.iisd.org/publications/report/fossil-fuel-subsidy-reform-aviation-shipping.

Wikipedia

{{cite report |last1=Wendenburg, |first1=Eduardo Posada,Vance Culbert,Anne |title=Fossil Fuel Subsidy Reform in Aviation and Shipping |publisher=International Institute for Sustainable Development |date=10 February 2025 |url=https://www.iisd.org/publications/report/fossil-fuel-subsidy-reform-aviation-shipping |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wendenburg2025fossil, author = {Wendenburg,, Eduardo Posada,Vance Culbert,Anne}, title = {{Fossil Fuel Subsidy Reform in Aviation and Shipping}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = feb, url = {https://www.iisd.org/publications/report/fossil-fuel-subsidy-reform-aviation-shipping}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }