Green taxation – MEPs hear out experts ahead of important review of legislation

MEPs on Monday heard from experts about greening taxation ahead of the imminent Commission proposal to review the Energy Taxation Directive.

The hearing, organised by the EP’s subcommittee on tax matters, also dealt with the potential contribution of green taxation in financing Europe’s recovery after the pandemic.

A first panel focussed on the review of the Energy Taxation Directive and how this can contribute to the goals of the European Green Deal with Kurt Van Dender (OECD) and Tatiana Falcão (University of Münster). The second panel, with Alice Pirlot (University of Oxford) and Carlo Stagnaro (Instituto Bruno Leoni), discussed the potential of green taxation in the overall tax mix as a means of both funding and supporting Europe’s recovery after the pandemic.

MEPs focussed considerably on the Carbon border adjustment mechanism, a possible kerosine tax, and how best to design the tax system in a way that would be both WTO compatible, practical to implement and would not penalise competitiveness unduly. Questions were also asked on the extent to which the EU’s efforts at greening its taxation were being matched by other countries across the world.

You can watch the hearing again here.