The current Energy Taxation Directive (ETD) was passed into law in 2003. Many policy, technology and economic changes have reshaped the energy landscape since that year. Today, the EU is implementing reviewed legislation on energy efficiency, renewable energy, electricity market design. It is high time for an overhaul of EU energy taxation.

Contributing to the European Commission (EC)’s just launched inception roadmap on the review of the ETD, COGEN Europe welcomed the EC’s plan to align the ETD with the Green Deal objectives. More specifically, COGEN Europe asks that the new European energy taxation rules support the European Union (EU)’s climate, energy and competitiveness goals.

In particular, the ETD should fully implement “energy efficiency first” as established in the Clean Energy Package, including a better recognition of improved conversion efficiency through cogeneration. The new ETD must therefore provide for a mandatory exemption for energy products and electricity used for High-Efficiency cogeneration (as defined in Directive 2012/27/EU) from the excise tax.

Moreover, the modernisation of energy taxation regimes should also account for the tremendous potential of energy systems integration. Taxation can play an important role in incentivising the optimal investments and operation in integrated electricity, gas and heat networks, ensuring renewable energy, energy efficiency and flexibility is maximised across all infrastructure at local level.

Read our full position HERE


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