Brussels, 03/06/2010 (Agence Europe) - EU Taxation Commissioner Algirdas Šemeta is preparing to launch a new debate about a revision of EU energy tax directive 2003/96/EC. Pursuing work by his predecessor as taxation commissioner, he will test the waters among fellow commissioners on Wednesday 23 June about the introduction of a carbon tax element in energy taxes on industries not covered by the EU's carbon trading system for greenhouse gas emissions, which currently covers half of carbon emissions. This means areas like transport (23% of emissions), household energy consumption (10%) and farming.
At present, the EU rules require taxation of sources of energy calculated by energy capacity (measured in gigajoules). Bioethanol used as fuel, for example, is taxed at €16 per gigajoule generated, which is twice as much as the most polluting form of diesel. The introduction of a carbon element in tax calculations would give less polluting energy a competitive advantage, fuels produced from biomass, for example. By encouraging the economic operators concerned to use less polluting forms of energy, the revised directive would help the EU meet its environmental targets.
Commissioner Šemeta needs to decide upon minimum taxation rates for the draft revision of the energy tax directive ahead of the meeting of the College of Commissioners on 23 June. A document without date from his department suggests that from 2013 onwards, a minimum €20 in excise duty might be levied on each tonne of carbon dioxide emitted. This would make coal the most heavily taxed energy source because the minimum excise duty on it would rise from €0.15 to €2 per gigajoule.
The Commission is looking into the option of member states providing set-rate refunds to certain industries that would otherwise be disadvantaged by competition from countries in non-EU countries that do not have to abide by these rules (carbon loss). Member states would have a transition period of up to 2018 to adjust to the minimum duty rates. Countries deciding to levy the tax on household energy consumption would be able to levy different rates of tax in different regions. In its document, the Commission says that if the changes to the directive are introduced unchanged by a unanimous vote at the Council of Ministers, it could cut the carbon emissions and energy consumption concerned by 4% and 1.6% respectively by 2020. (M.B./transl.fl)