Energy Taxation (Directive)

The Commission wishes to align energy taxation to its energy and climate protection targets by 2020 by linking taxation rates to CO2 content and to energy content. The CO2 related taxation component

Is to promote low-carbon motor and heating fuels and covers all consumers of motor and heating fuels who are not subject to the EU Emissions Trading Scheme. 


Improving the harmonization of energy taxation and emissions trading is in principle appropriate. However, with minimum levels of taxation for CO2 related components, this coordination is only possible to a limited extent, as Member States are able to levy tax rates that exceed significantly the certificate prices of the emissions trading scheme. Therefore, CO2 related tax rates should be harmonised EU-wide. Even better than CO2 related tax rates would be to include motor and heating fuels in emissions trading.