On the 17th of November 2021, we submitted our feedback to the European Commission’s proposal to revise the Energy Taxation Directive (ETD).
The revision aims to align the tax system for energy products with the Union’s energy and climate policies, promote clean technologies, reduce the scope of applying outdated exemptions and reduced rates, and prevent the implementation of divergent national rates.
We believe that this revision should be an occasion to foster and facilitate the decarbonisation of the heating sector through:
- Enabling the most favourable treatment of solutions such as biomass;
- Focusing on the potential of energy efficiency measures as a prerequisite to fuel switch and key to optimising any heating installation, whether using renewable energy sources or not.
Therefore, we propose that:
- The minimum level of taxation for sustainable biomass applicable to heating fuels should be reduced to zero;
- Exemptions and reductions must be duly justified and conditioned based on environmental performance and energy efficiency.