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Energy Taxation Directive

On 5 December 2019, the ECFIN Council took place and among other things, discussed the revision of the Energy Taxation Directive, which dates back to 2003.

Most member states welcomed the Council’s conclusions to revise and modernise the Energy Taxation Directive as it is currently outdated. This needs to be done while making sure to not endanger growth and job creation and ensure a level playing field at the European and international level – sectors need to be accompanied during the transition process and take care of the citizens that will face negative impacts from such directive. 

A couple of countries raised the topic of a carbon adjustment mechanism and supported the idea that energy taxation would help achieve climate goals.

Regarding aviation, while some member states supported to remove the fuel exemption, the majority asked to carefully consider the impacts such decision may have. Certain international exemptions were set to avoid market distortions and ensure connectivity – a strong impact assessment necessary. 

The European Commission proposed to carry out an impact assessment to address the very issues that have been raised during the discussion – social, connectivity and competitive matters. Member states welcomed the proposal. 

You may follow the discussion via the link - click here