CO2 Tax in Europe?

The idea of CO2 taxation of fuels in Europe is not new. Now Euractiv says that the European Commission is planning to propose a new CO2-related component that is designed to complement a general tax on energy consumption.

The draft suggests that a minimum levy of €0.01 per kilogramme of CO2 could be added to the price of heating fuels like gasoil, kerosene and natural gas. Motor fuels would be taxed either €0.01 or €0.03 per kg/CO2, depending on where they are used.

There are exemptions provided, such as due to distribution imbalances, and a general transitional period for Eastern European Member States until 2021. There is also an idea to pass the draft under the rules of enhanced cooperation. That will allow dissenting Member States to opt out of the new rules.

This is a cross-post from Think 2.

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