European Agenda
Tax the energy sector correctly: Reform urgently needed
Tax is an effective way of steering consumers’ behavior. As synthetic fuels are key to reaching climate targets, they should be considered more closely by the energy tax guidelines.
Tax is an effective way of steering consumers’ behavior. As synthetic fuels are key to reaching climate targets, they should be considered more closely by the energy tax guidelines.
- Topics
- European Agenda
- Fit for 55
- Energy tax guidelines
Revising the energy tax guidelines: Incorporate renewable fuels now
The European Green Deal focuses its political agenda on climate policy. As part of its "Fit for 55" package, the European Commission will propose a revision to the energy tax guidelines, which have remained unchanged since 2003. Taxes constitute a significant percentage of the end price that consumers pay for their energy. For this reason, the energy tax guidelines will play an especially decisive role.
The current energy tax guidelines, which have been in place for nearly two decades now, also fail to take renewable fuels sufficiently into consideration. Especially when it comes to the emissions of existing fleets and commercial vehicles, renewable fuels are needed as a supplement to electromobility if the ambitious climate targets set for the traffic sector are to be met.
