During the consultations on the inception impact assessment on the Energy Taxation Directive, Eurelectric called on policymakers to:
- Improve the convergence of fiscal rules. It is high time to stop the rules that allow for a higher taxation of renewables than fossil fuels.
- Apply proper CO2 pricing on fossil fuels and integrate criteria on the climatic performance of energy sources. Today, fossil fuelled means of transport or heating are only marginally affected by CO2 Eurelectric also recently addressed problems related to carbon leakage (see here).
- Gradually remove tax exemptions for aviation and maritime fuels and remove double taxation for flexibility sources, while also considering extending the ETS scope or applying carbon pricing measures.
- Align the Energy Taxation Directive with carbon neutrality ambitions. Limiting the weight of taxes on electricity will help make electricity more affordable for households and contribute to minimise social and distributional impacts.
If properly set, the taxation framework will contribute to Europe’s decarbonisation objectives.
Read the detailed reply to consultations here.