EU's Energy Tax Rules Lagging Climate Goals, Report Says

Law360 (September 12, 2019, 5:36 PM EDT) -- The European Union's energy tax framework hasn't kept pace with modern climate initiatives, in part because the rules don't contain an updated carbon element and give considerable flexibility to member states, according to a report released Thursday.

The EU's energy taxation directive, enacted in 2003, doesn't contribute to the bloc's more recent policy goals to address climate change, according to the report published by the European Commission.  Although the directive initially helped to prevent a “race to the bottom” among member countries, including by setting minimum tax rates for motor fuels, there's a dissonance between the desired and actual effects, the...

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