Flying and Environmental Taxation No 2 - Climate Change Levy

In general the climate change levy (CCL) is imposed on numerous industries with the intention of inducing a reduction in carbon emissions by that industry.

Briefly, it works as follows:

• in the first year of the scheme an industry receives from the government an aggregate allocation of carbon emissions certificates (CEFs) - representing the industry's total allowable emissions for the period;
• for that year each business in the industry is allocated a portion of the industry's aggregate allocation - representing the business's total allowable emissions for the period; 
• if during that year a business needs to emit more than the allocation given to it, it must either a) buy CEFs from others in the industry, or b) become more energy efficient by say, investing in plant and machinery for improved energy efficiency.

This year air transport will become within the ambit of the CCL. An immediate response has been to raise passenger air fares for cover the CCL. A longer term strategy, if not already started, will be to find ways of avoiding the tax. I am still seeking examples but possibilities (to be confirmed) include:

• investing in lighter aircraft so that fuel consumption is reduced;
• investing in more efficient aero-engines as and when they become available;
• use exempt fuels (if any) (adapting or changing engines, if necessary).

For passengers....? Review airlines' strategies and seek out energy efficient carriers. See who is buying the best aircraft or aero-engines - I presume that as time passes their prices will reflect their ability to:

• save by flying faster;
• save on aero-fuels;
• save by selling-off their surplus CEFs!