When the European Green Deal was announced in December 2019, we lived in a different world. The flagship project of the von der Leyen Commission was born B.C. (before COVID-19), but unlike the many other initiatives and practices that perished before the new reality, the Green Deal is needed now more than ever. [...]

The goals, commitments, and challenges that the EU faces today in energy, climate and environmental issues have significantly evolved. Not to mention the Emissions Trading System, currently inconsistent with the ETD. 

It is obvious that there is a pressing need to modernise the Directive and use it as an instrument at the service of the European Green Deal goals. In other words, the review must bring fewer taxes to green production and clear planning for phasing out fossil fuel subsidies, in line with the commitments established in the Paris Agreement and with the ‘do no harm’ principle.

Phasing out fossil fuels subsidies is no minor issue. In 2018, they represented €50bn across the EU, approximately 30 percent of that year’s total energy subsidies. In fact, the report on the State of the Energy Union 2020 pointed out the “need to step up efforts to reduce subsidies from wasteful energy consumption and to promote the energy transition”. 

Environmental taxation is a broad and cross-cutting discussion that requires working in many different areas such as industry, trade, consumption, travel, and transport, to name a few. Making sure that the negative externalities derived from these activities are duly covered is just as important as promoting good practices that produce positive externalities.

Renewable energy and clean technologies are just an example. In any case, I believe that the European Union should lead this discussion. Likewise, the EU should be in charge of managing the resources resulting from this potential green taxation reform - because the EU is the one leading and coordinating the efforts of all Member States in achieving climate neutrality. [...]

Artículo disponible en www.theparliamentmagazine.eu