EU’s energy taxation policy contradicts climate goals, auditors say
Energy taxation, carbon pricing policies and fossil fuel subsidies must be aligned more closely if the European Union wants to reach its 2030 climate targets, EU auditors said in a new report published on Monday (31 January).
Under the EU’s current Energy Taxation Directive, polluting energy sources like coal may have a tax advantage compared to more carbon-efficient ones, according to the report by the European Court of Auditors (ECA).
“For instance, coal is taxed less than natural gas, and some fossil fuels are taxed significantly less than electricity,” ECA said in a statement.
On average, coal is taxed €2.9 per megawatt hour while natural gas is taxed €7/MWh. Electricity, by comparison, is taxed €32.1/MWh, according to the report (see table below).
