Departure tax could fund hydrogen aircraft?

A new departure tax would help produce low-carbon planes and provide a source of climate finance for Pacific Island nations.

So says Parliamentary Commissioner for the Environment former National MP Simon Upton​ who suggests New Zealand and international travellers pay an extra levy on all outbound flights.

The money would be earmarked for green planes – including hydrogen and battery powered aircraft – and solar panels, wind farms and EVs for Pacific islands.

Upton reckons money raised from the tax could also go on national and international research and development for zero-carbon fuels and aircraft and some directed to developing countries to pay for new wind and solar farms and EV adoption.

About 3.3 million tonnes of carbon dioxide resulted from people flying in and out of New Zealand in 2017, the commissioner’s report Not 100% – but four steps closer to sustainable tourism says.

Experts warn the tax would need to be carefully implemented to ensure travellers, particularly international visitors that pay a tourist levy when they enter the country, don’t feel ripped off, Stuff reports.

The final destination would determine how much a traveller pays with three zones suggested – short haul (Australia/Pacific Islands), medium haul (east and southeast Asia) and long haul (elsewhere).

The tax could raise about $100 million to $400 million annually, with international flights forecast to reach pre-COVID pandemic levels in about three years.