Airlines Flying on Clean Fuel Should Pay Less Tax, Branson Says

Governments need to make it “very clear” that jet fuel made from sources such as inedible plants and organic waste aren’t taxed like regular fuel, said Richard Branson, founder of Virgin Atlantic Airways Ltd. A push by governments to remove taxes levied on airlines if they switch to using clean fuel would provide “enormous encouragement to the airline industry” to invest further in biofuel companies, Branson said today in a telephone interview. Virgin already has invested in Gevo Inc. and Solazyme Inc. The airline spends more than $2 billion a year on fuel and there is “billions and billions and billions” there for the taking by the clean energy industry, the entrepreneur said. The industry fuel bill was $139 billion in 2010. “Governments need to make it clear that if it’s clean fuel it shouldn’t be taxed and if it’s dirty fuel it should be taxed and that seems to be the best way to speed things up,” he said. The International Air Transport Association, which estimates the aviation industry accounts for 2 percent of global carbon- dioxide emissions, set a target in 2007 to eliminate these emissions from air travel by 2050.