EU: new compromise text on the EU Energy Taxation Directive

The Energy Taxation Directive (ETD), that sets taxes on energy products in the EU such as motor fuels, heating fuels or electricity, has been in force since 2003. Back in 2021 the European Commission (EC) proposed a revision of the Directive to align it with the EU climate objectives. The overall objective was to provide a greater fiscal incentive for electricity, and other sustainable fuels, over fossil fuels. Please see SGS INSPIRE report on Fit-For-55 package.

Following a high-level meeting on tax questions that took place in March 2024, the Belgian presidency of the Council of the EU has been conducting one-to-one meetings with other national delegations to reach a consensus on the proposed ETD.

The Coun