Importers could pay EU carbon tax from 2026 – pv magazine International
European Economic Commissioner Paolo Gentiloni explained how the commission’s planned review of the energy tax regime and the introduction of an EU carbon border could be implemented.
Developers of solar projects in Europe will have taken note of the emergence of more details on two crucial policy developments linked to the EU’s willingness to apply the principles of the European Green Deal to the energy sector.
European Economic Commissioner Paolo Gentiloni held a press conference on Thursday on the EU’s proposed Carbon Border Adjustment Mechanism (CBAM) – which would levy royalties on non-EU products based on their footprint integrated carbon – and on a planned revision of taxes applied to energy production.
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Commissioner Gentiloni said the CBAM long trail would initially require importers of goods into the EU to report on the integrated carbon footprint of the products in question, from 2023 to 25, without having to pay any associated costs. Importers should, however, purchase certificates to offset the carbon represented by goods imported from 2026, according to the European Commission proposal, with the weekly prices of carbon allowances set by a European emissions trading system. reinforced.
The Commissioner rejected claims that CBAM amounted to protectionism by stating that the regime was specifically tied to individual imported goods rather than their countries of origin.
The former Italian prime minister also described planned changes to the bloc’s energy tax directive, the rates of which, he said, have remained unchanged since 2003.
Commenting on the fact that electricity is taxed by volume, regardless of the sustainability or otherwise of the energy or fuel used, Commissioner Gentiloni said that the tariffs “do not reflect the actual energy content or the environmental performance of the products. energy sources covered. They result in polluting fuels being taxed less than their cleaner alternatives, which of course makes no sense. In short, the current rules are completely out of sync with our green ambitions.
As part of the proposed reform of the Directive, a new tax regime would set minimum tax rates for different types of electricity generation and fuel use, reflecting environmental performance and energy efficiency. It would then be up to EU member states to tax the most environmentally harmful fuels the most, Gentiloni said, with minimum rate exemptions only available for the most sustainable energy sources.
The new regime would list more energy products and uses that have emerged since 2003 and the commissioner said the mandatory exemption from taxation of kerosene in aviation and petroleum used in maritime transport would be lifted, with alternatives durable in both sectors to be exempt instead. tax for ten years.
Gentiloni said the proposed tax reform would give member states “built-in opportunities” to mitigate any resulting increase in costs to low-income households.
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