Summary
Cefic’s position paper on the European Commission’s proposal to amend the Energy Taxation Directive (ETD) articulates the chemical industry’s support for Europe’s ambition to achieve climate neutrality by 2050. The document underscores the necessity for substantial volumes of renewable and low-carbon energy and breakthrough technologies, facilitated by supportive frameworks for substantial investments. Cefic recommends resolving overlaps between ETD and EU Emissions Trading System (ETS), maintaining Member State flexibilities for tax rates to ensure industrial competitiveness, and promoting hydrogen use through uniform taxation comparable to electricity. These measures aim to support energy efficiency, reduce greenhouse gas emissions, and enable a smoother transition toward climate neutrality without undermining the industry’s global market competitiveness.
Key Takeaways
- Resolve Taxation Overlaps: Differentiate between energy levies and environmental charges in ETD to prevent double taxation where ETS already applies.
- Safeguard Competitiveness: Maintain Member State flexibilities in taxation rates and exemptions for energy-intensive industries to protect EU market competitiveness and investment capacity.
- Promote Hydrogen Use: Establish uniform taxation for hydrogen equivalent to electricity, regardless of production methods, to encourage hydrogen uptake and reduce GHG emissions.