E.U. to Debate Shift in Energy, Carbon Tax
The European Union is considering a change to its energy tax policy that could make renewable fuels cheaper than fossil fuels, according to a Reuters report.
The proposed policy change would affect $294 billion in current energy taxes, and would be phased in from 2013 to 2018.
Two significant changes would be implemented: the tax would be based on the amount of energy content in a given volume of fuel, and a tax on carbon dioxide would be included. Currently, energy taxes are based solely on fuel volume, not energy density.
According to the report, the potential carbon tax would fall between 4 to 30 euros per ton of CO2. But exemptions might be carved out for farmers, and for heavy industries that compete with overseas firms that do not face carbon restrictions.
Currently, coal is the least taxed energy source under E.U. policy, while bioethanol is one of the highest.
Several E.U. countries already have their own carbon tax policies, but the political union has resisted attempts to institute blanket changes to energy taxation policies. Changes may be possible now, however, as Europe looks for ways to raise revenues in order to bail out faltering economies like Greece, Spain and Portugal, without increasing already unpopular austerity measures.
Although member nations have traditionally resisted attempts by the E.U. to wrestle away control of energy policy, such attempts have a greater chance of succeeding now that the financial crisis has increased the need for international cooperation and revenue generation, according to the article.
The proposal is set to be discussed June 23rd.
Stay Up-to-Date On Environmental Management, Energy & Sustainability News with EL's Free Daily Newsletter
Energy Manager News
- Bridgewater, MA, Gets $231,000 Efficiency Grant
- Biomass Group Studies Role in Clean Power Plan
- Rockleigh Borough Installing LEDs, Low Energy AC
- PHG to Build Big Gasification Plant for Sevier Solid Waste
- Energy Profile of Commercial Buildings Changing
- Smart Meter Market Surging
- Modular Data Centers Cut Construction Costs
- Failure to Build Energy Infrastructure Could Cost New England $5.4B