Fuels industry urges EU countries to finalise dormant energy tax overhaul
(EurActiv, 9 Nov 2023) The EU’s energy taxation directive (ETD), a proposal to bring energy tax rules in line with the bloc’s green goals, remains at a standstill more than two years after it was first proposed.
Unlike other rules put forward by the European Commission, tax matters are dealt with by unanimity decision at the Council of the EU, meaning each member state has a right of veto and can block the law from progressing.
Other institutions, such as the European Parliament, are relegated to providing opinions, in which they advise national governments on how to proceed.
A revision of the ETD, last updated twenty years ago, was a significant element of the European Commission’s so-called “Fit for 55” package, a series of legislative proposals unveiled in July 2021 aimed at slashing Europe’s carbon emissions in line with its Green Deal ambitions.
However, while the bulk of the package has passed into law, the Energy Taxation Directive remains conspicuously absent.
Instead, disagreements over the phasing out of tax exemptions for aviation and maritime fuels have brought negotiations to a halt.