cepPolicyBrief
Energy
Energy Taxation (Directive)
cepPolicyBrief
Improving the harmonization of energy taxation and emissions trading is in principle appropriate. However, with minimum levels of taxation for CO2 related components, this coordination is only possible to a limited extent, as Member States are able to levy tax rates that exceed significantly the certificate prices of the emissions trading scheme. Therefore, CO2 related tax rates should be harmonised EU-wide. Even better than CO2 related tax rates would be to include motor and heating fuels in emissions trading.