BETA


Events

2021/10/07
   EP - Committee referral announced in Parliament
2021/09/28
   EP - HAJŠEL Robert (S&D) appointed as rapporteur in ITRE
2021/09/01
   EP - VAN OVERTVELDT Johan (ECR) appointed as rapporteur in ECON
2021/07/15
   EC - Document attached to the procedure
Documents
2021/07/15
   EC - Document attached to the procedure
2021/07/15
   EC - Document attached to the procedure
Documents
2021/07/15
   EC - Document attached to the procedure
2021/07/14
   EC - Legislative proposal published
Details

PURPOSE: to restructure the EU framework for the taxation of energy products and electricity (recast).

PROPOSED ACT: Council Directive.

ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.

BACKGROUND: the taxation of energy products and electricity plays an important role in the area of climate and energy policy. The harmonised rules set under the Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity (Energy Taxation Directive or ETD) aim to ensure the proper functioning of the internal market. However, since the adoption of the ETD, the underlying climate and energy policy framework has changed radically and the Directive is no longer aligned with current EU policies.

The European Green Deal launched a new growth strategy for the EU that aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy. The ‘ European Climate Law ’ has made the EU's climate neutrality target by 2050 legally binding.

The Commission has presented a complementary and interconnected set of proposals as part of the 2030 Climate and Energy ‘Fit for 55’ package to achieve the greenhouse gas emission reduction target of at least 55% compared to 1990. This ‘Fit for 55’ legislative package is the most comprehensive building block in the efforts to implement the ambitious new 2030 climate target, and all economic sectors and policies will need to make their contribution.

The proposal for recasting is part of this package as it focuses on environmental and climate issues to support the Commission’s commitment to tackling environmental-related challenges and achieve the EU’s domestic greenhouse gas emissions reductions objectives and air pollution reduction.

CONTENT: this proposal for a Council Directive aims to align the taxation of energy products with EU energy and climate policies , promote clean technologies and remove outdated exemptions and reduced rates that currently encourage the use of fossil fuels. The new rules aim at reducing the harmful effects of energy tax competition, helping secure revenues for Member States from green taxes, which are less detrimental to growth than taxes on labour.

It proposes with effect from first of January 2023:

- the introduction of a new structure of tax rates based on the energy content and environmental performance of the fuels and electricity: taxation based on energy content provides a better benchmark for comparing different energy products and electricity and removes the current disadvantageous tax treatment of certain products, such as biofuels. Minimum rates would be set on the basis of the energy content (calculated in EUR/gigajoule) of each product;

- the grouping of energy products and electricity into general categories by type , according to a classification that takes into account energy content and environmental performance so that the most polluting fuels are the most taxed. Member States should replicate this ranking at national level. Electricity should always be included among the least taxed energy sources in order to encourage its use, particularly in the transport sector;

- broadening the taxable base defined in the Directive by including more products in the scope and removing some of the existing exemptions and reductions. It would still be possible to apply certain reduced rates, such as those applicable to electricity or advanced energy products produced from renewable energy sources and to primary sector industries such as farming;

- different minimum levels of taxation for motor fuels, heating fuels and electricity. Over a ten-year period, the minimum rates for these fuels would gradually increase, while low-carbon fuels for these sectors would have a zero minimum rate to encourage their use;

- taxation of energy products and electricity used by aircraft and ships. Energy products and electricity supplied for intra-EU air navigation (with the exception of those supplied for cargo-only flights) and for intra-EU inland waterway navigation, including fishing, should be taxed;

- the possibility of tax exemptions for certain products or for electricity from certain sources such as renewable electricity, non-biological renewable fuels, etc.

Documents

  • Document attached to the procedure: SEC(2021)0663
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2021)0640
  • Document attached to the procedure: SWD(2021)0641
  • Document attached to the procedure: EUR-Lex
  • Document attached to the procedure: SWD(2021)0642
  • Legislative proposal published: EUR-Lex
  • Legislative proposal published: COM(2021)0563
  • Document attached to the procedure: SEC(2021)0663
  • Document attached to the procedure: EUR-Lex SWD(2021)0640
  • Document attached to the procedure: SWD(2021)0641
  • Document attached to the procedure: EUR-Lex SWD(2021)0642

History

(these mark the time of scraping, not the official date of the change)

committees/0
type
Responsible Committee
body
EP
committee_full
Economic and Monetary Affairs
committee
ECON
associated
False
rapporteur
name: VAN OVERTVELDT Johan date: 2021-09-01T00:00:00 group: European Conservatives and Reformists Group abbr: ECR
shadows
committees/0
type
Responsible Committee
body
EP
committee_full
Economic and Monetary Affairs
committee
ECON
associated
False
rapporteur
name: VAN OVERTVELDT Johan date: 2021-09-01T00:00:00 group: European Conservatives and Reformists Group abbr: ECR
shadows
events/1
date
2021-10-07T00:00:00
type
Committee referral announced in Parliament
body
EP
procedure/dossier_of_the_committee
  • ECON/9/06932
procedure/stage_reached
Old
Preparatory phase in Parliament
New
Awaiting committee decision
committees/0/shadows/3
name
GRUFFAT Claude
group
Group of the Greens/European Free Alliance
abbr
Verts/ALE
committees/0/shadows/1
name
SCHUSTER Joachim
group
Group of Progressive Alliance of Socialists and Democrats
abbr
S&D
committees/2/rapporteur
  • name: HAJŠEL Robert date: 2021-09-28T00:00:00 group: Group of Progressive Alliance of Socialists and Democrats abbr: S&D
committees/0/shadows/1
name
KOVAŘÍK Ondřej
group
Renew Europe group
abbr
Renew
committees/0/shadows
  • name: KYRTSOS Georgios group: Group of European People's Party abbr: EPP
committees/4
type
Committee Opinion
body
EP
committee_full
Fisheries
committee
PECH
associated
False
committees/4/type
Old
Committee Opinion
New
Committee Recast Technique Opinion
procedure/legal_basis/0
Rules of Procedure EP 110
procedure/subtype
Old
Legislation
New
Recast
committees/0/rapporteur
  • name: VAN OVERTVELDT Johan date: 2021-09-01T00:00:00 group: European Conservatives and Reformists Group abbr: ECR
committees/1/opinion
False
commission
  • body: EC dg: Taxation and Customs Union commissioner: GENTILONI Paolo
docs/0
date
2021-07-14T00:00:00
docs
type
Legislative proposal
body
EC
events/0/summary
  • PURPOSE: to restructure the EU framework for the taxation of energy products and electricity (recast).
  • PROPOSED ACT: Council Directive.
  • ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion.
  • BACKGROUND: the taxation of energy products and electricity plays an important role in the area of climate and energy policy. The harmonised rules set under the Directive 2003/96/EC restructuring the Community framework for the taxation of energy products and electricity (Energy Taxation Directive or ETD) aim to ensure the proper functioning of the internal market. However, since the adoption of the ETD, the underlying climate and energy policy framework has changed radically and the Directive is no longer aligned with current EU policies.
  • The European Green Deal launched a new growth strategy for the EU that aims to transform the EU into a fair and prosperous society, with a modern, resource-efficient and competitive economy. The ‘ European Climate Law ’ has made the EU's climate neutrality target by 2050 legally binding.
  • The Commission has presented a complementary and interconnected set of proposals as part of the 2030 Climate and Energy ‘Fit for 55’ package to achieve the greenhouse gas emission reduction target of at least 55% compared to 1990. This ‘Fit for 55’ legislative package is the most comprehensive building block in the efforts to implement the ambitious new 2030 climate target, and all economic sectors and policies will need to make their contribution.
  • The proposal for recasting is part of this package as it focuses on environmental and climate issues to support the Commission’s commitment to tackling environmental-related challenges and achieve the EU’s domestic greenhouse gas emissions reductions objectives and air pollution reduction.
  • CONTENT: this proposal for a Council Directive aims to align the taxation of energy products with EU energy and climate policies , promote clean technologies and remove outdated exemptions and reduced rates that currently encourage the use of fossil fuels. The new rules aim at reducing the harmful effects of energy tax competition, helping secure revenues for Member States from green taxes, which are less detrimental to growth than taxes on labour.
  • It proposes with effect from first of January 2023:
  • - the introduction of a new structure of tax rates based on the energy content and environmental performance of the fuels and electricity: taxation based on energy content provides a better benchmark for comparing different energy products and electricity and removes the current disadvantageous tax treatment of certain products, such as biofuels. Minimum rates would be set on the basis of the energy content (calculated in EUR/gigajoule) of each product;
  • - the grouping of energy products and electricity into general categories by type , according to a classification that takes into account energy content and environmental performance so that the most polluting fuels are the most taxed. Member States should replicate this ranking at national level. Electricity should always be included among the least taxed energy sources in order to encourage its use, particularly in the transport sector;
  • - broadening the taxable base defined in the Directive by including more products in the scope and removing some of the existing exemptions and reductions. It would still be possible to apply certain reduced rates, such as those applicable to electricity or advanced energy products produced from renewable energy sources and to primary sector industries such as farming;
  • - different minimum levels of taxation for motor fuels, heating fuels and electricity. Over a ten-year period, the minimum rates for these fuels would gradually increase, while low-carbon fuels for these sectors would have a zero minimum rate to encourage their use;
  • - taxation of energy products and electricity used by aircraft and ships. Energy products and electricity supplied for intra-EU air navigation (with the exception of those supplied for cargo-only flights) and for intra-EU inland waterway navigation, including fishing, should be taxed;
  • - the possibility of tax exemptions for certain products or for electricity from certain sources such as renewable electricity, non-biological renewable fuels, etc.
procedure/title
Old
Taxation of energy products and electricity. Recast
New
Energy Taxation Directive. Recast. 'Fit for 55 package'