What's next for the EU Green Deal? EU Energy Taxation
By Tom Carter, Senior Associate
The European Commission has initiated another key element towards implementation of the European Green Deal (EGD). With a target of European carbon neutrality by 2050, fossil fuel reduction through energy transformation is an important component of the EGD.
What’s new?
Two newly opened public consultations address the use of tax policy to encourage energy efficiency, smarter distribution, and greater use of renewable sources. One of the consultations revises the current Energy Tax Directive (ETD) and the other creates a Carbon Border Adjustment Mechanism (CBAM). The Commission’s COVID-19 Recovery Plan for Europe will also contain provisions related to carbon taxation.
The ETD will ensure that taxation of energy products in the EU provides incentives for efficiency and clean energy technologies and for reducing or eliminating subsidies for fossil fuels. In a coordinated effort, the CBAM will reduce the import of cheaper-but-higher-carbon energy from countries with less ambitious climate policies.
What can you do?
Stakeholders can provide input on the two consultations at the following sites: ETD, CMAB. The Commission has also prepared a description of the role that tax policy can play in reducing carbon emissions that is available here.
What does the EU Green Deal mean for your business?
For more details about our perspective on the European Green Deal, check out Amplia Group’s four-part blog series on the EGD. Meet our Sustainability team, composed of experts in EU policy, sustainability, and marketing and public affairs.
