As we reported on Monday, the European Commission proposes ending the volume-based taxation of energy products and replace it with a tax consisting of two elements: a carbon tax based on emissions and a general energy consumption tax based on the energy content of the product. The development has been welcomed by members of the biofuel industry.
“The proposal is good news for renewable fuels in Europe as it addresses two major flaws in the current taxation system,” ePURE said in a recent press statement. Firstly, renewable fuels generally have a lower energy density than fossil fuels, which will be addressed by the energy part of the taxation. Secondly, bioenergy is internationally acknowledged to be carbon dioxide free at the end use, a point recognised by the introduction of the carbon tax-element. If adopted, the proposal will end the systematic discrimination of renewable fuels that is inherent in the current taxation system.
“Finally, the paradox of clean renewable fuels being taxed at a higher rate than polluting fossil fuels would be solved. This is an absolutely necessary move to cement the EU’s Climate and Energy objectives and to level the playing field between renewable fuels and fossil fuels. The polluter must pay and must pay a fair share,” said Rob Vierhout, Secretary-General, ePURE.
“ePURE urges the member states to swiftly adopt the Commission proposal and thereby truly complete the EU Climate and Energy Package to which they committed themselves two years ago”, added Mr. Vierhout.
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