Share this on social media
EU energy tax plan seeks to end ‘hidden advantage’ for fossil fuels
(EurActiv, 16 Jul 2021) A proposed new EU-wide fuel taxation system based on energy content rather than volume seeks to end incentives for petrol and diesel, aiming instead to support the uptake of green biofuels, renewable hydrogen and synthetic fuels.
The European Commission tabled a revision of the 2003 energy tax directive on Wednesday (14 July), as part of a broader EU effort to achieve a 55% cut in greenhouse gas emissions by 2030 compared to 1990 levels.
The directive, last updated in 2003, sets minimum tax rates for energy, including transport fuels and electricity.
Most European countries have tax rates above the EU minimum, but those have never been adjusted to inflation, said Paolo Gentiloni, a former Italian prime minister who is now EU Economy Commissioner.
“They are completely out of sync with our climate ambition,” Gentiloni told journalists on Thursday (15 July).
The central part of the reform is a proposal to move the EU-wide taxation system based on volume – or euros per litre – to a tax system based on energy content or gigajoules, a senior EU official explained.
External link
EurActiv, 16 Jul 2021: EU energy tax plan seeks to end ‘hidden advantage’ for fossil fuels
