EU eyes tax as tool in climate change fight
(Reuters, 16 Nov 2020) Current EU energy taxation rules only reflects the cost of making and transporting a product, without accounting for its toll on the environment.
Taxation will not escape the European Union's plans to curb planet-warming emissions, and levies should be revamped to reflect climate and environmental costs, the head of EU climate policy said on Monday.
Brussels is planning a far-reaching overhaul of policies including Europe's carbon market, farming subsidies and CO2 standards for cars as it seeks to slash EU emissions to 'net zero' - meaning that all emissions must be offset in full by absorption measures - by 2050.
As part of those plans, the European Commission will revise EU energy taxation rules by next summer.
Commission Executive Vice-President Frans Timmermans said on Monday the bloc needs to rectify the current system, where taxes reflect the cost of making and transporting a product but fail to account for its toll on the environment.