The Danish Presidency of the Council of the European Union has put the proposal for a directive revising the taxation of energy products on the agenda for the meeting of Member States’ ambassadors to the EU (Coreper) on Wednesday 5 November, in preparation for the Ecofin Council meeting on Thursday 13 November (see EUROPE 13717/11).
A number of political issues still need to be resolved before a unanimous agreement by the Member States can be envisaged. Work is in progress between the Danish Presidency and the Member States, according to a diplomatic source, who believes that the issue will not be resolved before the ministerial meeting.
Among the provisions under discussion is the indexation of tax levels to inflation. The starting point for this measure is still 2038, and the level of taxation will be reviewed every three years, according to a Danish compromise proposal dated 9 October.
The Danish Presidency is also proposing that Member States that so wish should be able to include ‘pink’ hydrogen (‘non-fossil low-carbon hydrogen’), generated with nuclear electricity, in category 3 of energy sources that can benefit from a favourable tax regime, like renewable energies. Such a provision is likely to satisfy the countries forming the ‘Nuclear Alliance’.
Finally, it is suggested that the deadline for applying reduced levels of taxation to energy products and electricity used for agricultural and forestry purposes be extended from the end of 2037 to the end of 2042. Several delegations would like to see a permanent exemption.
See the Danish Presidency's compromise proposal: https://aeur.eu/f/ja9 (Original version in French by Mathieu Bion)