| Author (Corporate) | European Commission: DG Taxation and Customs Union |
|---|---|
| Series Details | COM (2021) 563 |
| Publication Date | 14/07/2021 |
| Content Type | Blog & Commentary, News, Policy-making |
Summary:Legislative initiative tabled by the European Commission on 14 July 2021, revising the so-called Energy Taxation Directive (ETD). This is a text with EEA relevance. Further information:The legislation framework for the taxation of energy products and electricity was restructured by Council Directive 2003/96/EC, which sought to ensure the proper functioning of the European Union's (EU) internal market. However, since the adoption of the ETD in 2003, the underlying climate and energy policy framework has changed radically. The European Green Deal was presented in December 2019 and it set the goal of making Europe the first climate-neutral continent by 2050. The European Climate Law enshrined in binding legislation the EU's commitment to climate neutrality and the intermediate target of reducing net GHG emissions by at least 55% by 2030. The Fit for 55 Package adopted in July 2021 aimed delivering on the objectives, which included a commitment to review the ETD focusing on environmental issues and in order to ensure that energy taxation is aligned with climate objectives. The ETD was evaluated by the European Commission in 2019. Subsequently, the Council of the European Union adopted conclusion whereby it acknowledged the role of energy taxation in providing economic incentives for a successful energy transition. As a result, the Commission was invited to revise the legislative framework. The existing Act raised issues as regards its disconnection from climate and energy efficiency objectives, as well as its shortcomings regarding the functioning of the internal market. This draft law seeks to provide an adapted framework contributing to the latest targets and objectives, preserving and improving the internal market, and preserving the capacity to generate revenues. The proposal also takes into account the social dimension. The proposed Council Directive was adopted by the European Commission on 14 July 2021, as part of the so-called Fit for 55 legislative package. |
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| Source Link | Link to Main Source https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2021:563:FIN |
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| Subject Categories | Energy, Environment, Internal Markets, Taxation |
| Subject Tags | Atmospheric | Air Pollution, Climate Change, Fiscal Policy |
| Keywords | Greenhouse Gas | GHG Emissions |
| International Organisations | European Union [EU] |
