The European Commission has proposed to revise the Energy Taxation Directive in order to encourage the use of low- and zero-emission vehicles in the transition towards climate-neutral road transport. The proposal aims to establish preferential minimum tax rates for low-carbon sustainable fuels and electricity compared to higher minimum tax rates for fully-fossil or high-fossil content fuels. The current road transport fleet across the EU and new low-emission vehicles will be based on internal combustion engines for many years, but the use of low-carbon sustainable fuels could contribute to road transport CO2 reductions. ACEA supports the intention of the Commission to amend the Energy Taxation Directive to establish these preferential minimum tax rates. However, it is noted that nearly all member states in the European Union already apply tax rates to petrol and diesel that are higher than the current minimum tax rates, so it is questionable if future fuel tax rates will congregate to the proposed (higher) minimum levels or member states will choose higher tax rates for all road transport fuel.
