The European Union is considering an overhaul of its energy taxation system that would make clean energy competitive with dirtier fuels, while also raising funds to address debts.
Currently, energy taxation policies vary widely from country to country, often creating conflicting incentives and encouraging big polluters, according to a Reuters story.
Financial worries in Greece, Italy and Spain provide an opportunity for EU leaders to consolidate the various schemes in an effort to raise revenue without increasing unpopular income taxes.
The proposed tax would have two parts. The first is a tax based on the energy content of a fuel, rather than its volume. This would put biofuels–which have lower energy density–on equal footing with coal. The second part is a straight carbon tax in the range of 4 to 30 euros per ton of emissions.
Read the full story at the link below.
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