Following in the steps of his predecessor, the new EU taxation commissioner Algirdas Šemeta is going to modify the directive regarding fuel taxation introducing a CO2 tax. Current legislation at European level sets minimum levels for the European taxation of fuels, but leaves to Member States the flexibility to set the final taxes. Under the new proposal, fuels will be taxed according to two components, CO2 content and energy content, thus imposing on a fuel with low energy content but leading to very high emissions a significantly higher tax. The proposal -which is built along the same lines of a previous one presented by the former taxation commissioner and never implement because it was “too controversial” – will be discussed in the college of commissioners in mid-April to become a proposal likely to be presented in May.

Climate Policy News

• This news is extracted from the Climate Policy News : a CMCC weekly column that summarises the latest news on international climate change agreements, the updates on the carbon market and the energy and technology updates in the realm of climate change. Go to the web page and see all previous issues since March 2007.
• This week: EC prepares details of 30% cut; EU-wide CO2 tax proposal coming up; EC sued over biofuel reports; UN launches IPCC review; China and India formally join Copenhagen Consensus; The carbon market this week – Download the March 8-14, 2010 Newsletter [pdf 43 Kb].