The European Commission published a working document on the evaluation of the Energy Taxation Directive (ETD). The purpose of the report is to explore how more environmentally friendly policies could better support the EU’s wider climate change commitments. According to the report, EU rules on energy taxation no longer deliver the same positive contribution as when they first came into effect in 2003.

The ETD lays down rules for the taxation of energy products used as motor or heating fuels and for electricity. Today’s report shows that while it initially made a positive contribution to the internal market, current rules do not contribute to the new EU regulatory framework and policy objectives in the area of climate and energy.