Energy Taxation Directive
01020304
With the European Parliament.
Last active 13 Nov 2024
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What this bill does
In plain terms: what it changes and who it affects.
This proposal updates EU energy taxation to tax fuels and electricity by energy content and environmental impact, reducing fossil-fuel tax advantages.
Who it affects
It affects energy consumers, households, energy-intensive businesses, transport operators, aviation and shipping, agriculture, forestry, fishing, and suppliers of fuels and electricity across the EU.
Core of the proposal
- Sets EU minimum tax rates by gigajoule and environmental performance, not fuel volume.
- Ranks fossil fuels highest, with lower rates for electricity, renewable hydrogen, advanced biofuels and biogas.
- Ends or limits tax exemptions for aviation, waterborne navigation, fishing and some fossil-fuel uses.
- Allows targeted reductions for vulnerable households, public transport, agriculture, forestry and energy-intensive businesses.
Key provisions
- Takes effect
- The proposal states that the recast rules would apply with effect from 1 January 2023.
- Transitional law
- Several minimum rates phase in over ten years, including aviation, household heating, vulnerable-household exemptions, and certain lower-carbon or sustainable fuels.
Articles changed · 1 across 1 law
- Council Directive 2003/96/EC (32003L0096)
- entire act: repeals and recasts the entire directive on energy products and electricity taxation
Latest update
26 May 2026The most recent development in this bill's progress.
Moved to European Parliament
Documents
1 recentSourcesOEIL