Some of the revenue raised would be channeled into environmental projects in the Third World, and the UN is keen on the tax as a huge source of funding for this. The conference is to review progress on the world environment since the 1992 Earth Summit in Rio de Janeiro, Brazil. Some European countries, notably Austria, want to introduce the tax unilaterally. But Britain believes only a worldwide flat-rate tax would work, because countries not operating the tax would be at a competitive advantage.
Aviation fuel is the cheapest fuel in the world because it is tax-free.
The ICAO has already prepared proposals for how the tax could be levied. The US, which is opposed to tax on even car fuel, is supported by other countries, such as Australia, which rely heavily on internal flights. These countries believe an aviation tax would unfairly damage their economies. But the environmental arguments for the tax are strong, particularly since most air travel is by people from the rich, industrialised world. The pollution is also delivered high in the atmosphere, where it takes immediate effect.