EC Eyes on Carbon Tax

The European Commission would soon present a legislative proposal to introduce a carbon tax across the EU

The European Commission said on Mar.4 it would soon present a legislative proposal to introduce a carbon tax across the European Union (EU) on the use of fossil fuels such as gasoline, natural gas and coal, Xinhuanet reported.

Commission spokeswoman Emer Traynor told a press conference that the commission was ready to present a legislative proposal in the coming months, setting a minimum standard for EU carbon tax.

Taxation is a sensitive issue in the EU, which is reserved for national sovereignty under EU rules and any change requires unanimity among all member states. The commission had previously been reluctant to endorse the idea of an EU-wide carbon tax since member states were divided on the issue.

Last Oct., financial department directors from EU member states held a discussion on carbon tax across EU, an indication of ripe time for action.

In fact, some member states of EU such as Sweden, Finland and Denmark have already introduced such tax on national basis. Ireland joined the team last Dec. and France is pushing for a similar domestic legislation. The United Kingdom, however, expressed disapproval.

A carbon tax refers to all relevant carbon dioxide emissions and content, different from carbon tariffs on imports.