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Image header Agence Europe
Europe Daily Bulletin No. 9923
Contents Publication in full By article 25 / 45
GENERAL NEWS / (eu) eu/state aid

Conditional green light to Danish plans to reduce tax on CO2 emissions

Brussels, 17/06/2009 (Agence Europe) - On Wednesday 17 June, the European Commission approved Danish plans to reduce the tax on CO2 emissions for companies subject to the emissions trading system in the EU. After an in-depth investigation which opened in September 2006, it has reached the conclusion that if the proposed total exoneration were applied, it would be necessary to give up some of the environmental objectives targeted by taxing energy-consuming products. The Commission is also concerned that total exoneration would distort competition by increasing the tax differences in an area in which the EU has harmonised taxes and laid down minimum rates in order to create fair conditions of competition between businesses. The Commission has therefore authorised the measure on the condition that it is modified in such a way as to ensure that all businesses concerned pay tax on energy which observes at least the harmonised minimum rates. (O.L./transl.fl)

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