Text · Opinion parliamentary committee draft
On the proposal for a Council directive restructuring the Union framework for the taxation of energy products and electricity (recast)
Document ITRE-PA-719575 · COM(2021)0563 – C9xxxx/2021 – 2021/0213(CNS)
- Kind
- Opinion parliamentary committee draft ITRE-PA-719575
- Date
- 16 February 2022
- Committee
- Committee on Industry, Research and Energy
- Rapporteur
- Robert Hajšel
- Dossier
- 2021-0213
More facts (2)
- Formats
- Official page PDF Word
- Reference
- COM(2021)0563 – C9xxxx/2021 – 2021/0213(CNS)
Text
The text as parsed from the official Word file. Every paragraph has a link (¶) and can be saved to a project as a passage.
Jump to an amendment (26)
- Amendment 1
- Amendment 2
- Amendment 3
- Amendment 4
- Amendment 5
- Amendment 6
- Amendment 7
- Amendment 8
- Amendment 9
- Amendment 10
- Amendment 11
- Amendment 12
- Amendment 13
- Amendment 14
- Amendment 15
- Amendment 16
- Amendment 17
- Amendment 18
- Amendment 19
- Amendment 20
- Amendment 21
- Amendment 22
- Amendment 23
- Amendment 24
- Amendment 25
- Amendment 26
Short justification
The revision of the Energy Taxation Directive is a necessary tool to reach the climate and energy targets. The Commission proposal is going in the right direction by introducing a new tax rate structure based on energy content and environmental performance and not on volume anymore. The current directive is from 2003 and does not reflect market situation, therefor we need to revise and align the tax rates with our energy and climate goals. There should be no more exemptions and reductions for environmentally harmful activities, while renewables and cleaner technologies should receive the correct price signal. At the same time, the transition should be socially just and reflect a fair distribution of costs between income classes. The most vulnerable households should not bear the cost of the transition.
With those aims in mind, I am proposing changes in four main areas, starting from the good basis of the Commission.
First, I propose the creation of social monitor and energy poverty reporting. While social policies remain a national competence, Member States should use the higher revenues from taxes to tackle the social consequences of the transitions. Therefore, we introduce periodical reporting by Member States on how they use the increased revenues to tackle direct consequences of the revised taxation. At the same time, we ask the Commission to regularly report on the situation with energy poverty and energy prices in the Member States. Such information will serve for future revisions.
Secondly, we propose to replace the current definition of vulnerable consumers with a quantitative definition of energy poverty. The risk of poverty rate is merely catching a low-income condition and does not reflect the multiple dimensions of energy poverty such as energy costs, housing stock and disposable income. Exemptions for people living in a condition of energy poverty are also possible after the end of the transition period.
Third, we strengthen provisions to incentivise the uptake of renewables by making the tax exemption mandatory. In this regards, we also encourage innovative activities such as active consumers, PPAs and energy communities by making exemptions also for them. On the other hand, taxation should always apply only to final consumption and the risk of double taxation has to be eliminated. Neither energy use within the energy value chain nor any form of conversion and storage should be taxed.
Fourth, we ask the Commission to develop and adopt by a common certification framework to specify the origin and the source of the electricity consumed. The digitalization of the electricity grids will help to overcome the technical obstacles. This will also improve transparency for consumers.
The Committee on Industry, Research and Energy calls on the Committee on Economic and Monetary Affairs, as the committee responsible, to take into account the following amendments:
| Text proposed by the Commission | Amendment |
|---|---|
| (17a) Energy taxation should only apply to final consumption, and neither energy use within the energy value chain nor any form of conversion and storage should be taxed. That principle should apply to all forms of energy-conversion processes and to energy products and electricity used for the transport and storage of energy products and electricity. In that context, conversion should be understood as the process of converting one form of energy into another, such as using natural gas to generate electricity or producing hydrogen from electricity or natural gas. |
This should prevent double taxation. Unlike the fossil fuels that are mined, low-emission fuels as well as electricity are produced. Therefore, it is necessary not to tax inputs, but only the result of production.
| Text proposed by the Commission | Amendment |
|---|---|
| (18) Energy products used as a motor fuel for certain purposes and those used as heating fuel are normally taxed at lower levels than those applicable to energy products used as a propellant. Electricity should always be among the least taxed energy sources in view of fostering its use, notably in the transport sector. To that purpose, Member States should endeavour to apply the same level of taxation to electricity used to charge electric vehicles as for heating purposes during the necessary time following the entry into force of this Directive. | (18) Energy products used as a motor fuel for certain purposes and those used as heating fuel are normally taxed at lower levels than those applicable to energy products used as a propellant. Electricity should always be among the least taxed energy sources in view of fostering its use, notably in the transport sector. To that purpose, Member States should endeavour to apply the same level of taxation to electricity used to charge electric vehicles as for heating purposes during the necessary time following the entry into force of this Directive. In this context, the Commission should put in place a certification system distinguishing the origin of electricity production. |
| Text proposed by the Commission | Amendment |
|---|---|
| (27a) By contributing to a reduction in GHG emissions and energy dependency and to providing flexibility to the grids, energy communities and prosumers self-producing renewable energy are an essential cornerstone of the energy transition. In order to incentivise such practices in all Member States, self-produced electricity should be exempted from taxation. |
| Text proposed by the Commission | Amendment |
|---|---|
| (28) Targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. An exemption from taxation may temporarily prove necessary to protect vulnerable households. | (28) Targeted reductions in the tax level may prove necessary to tackle the social impact of energy taxes. An exemption from taxation may temporarily prove necessary to protect households living in a condition of energy poverty as defined in this Directive. |
| Text proposed by the Commission | Amendment |
|---|---|
| (28a) Energy is essential and access to energy services is a basic social right. Energy poverty should be considered as the inability of a household to support an level of energy supply adequate to guarantee basic levels of comfort and health, due to one or more of the following factors: low income, high-energy prices and low quality, poor performing housing stock. |
| Text proposed by the Commission | Amendment |
|---|---|
| (28b) Households should be able to afford the heating, cooling and electricity needed for a decent quality of life and to live in a healthy indoor environment in both warm and cold seasons. In that regard, energy poverty should also encompass those households that spend a large share of their disposable income on energy services, those that are at risk of poverty after deducting housing and energy costs, as well as those obliged to reduce their energy expenditures due to their income conditions. The quality of housing stock should also be a criterion defining a condition of energy poverty. |
| Text proposed by the Commission | Amendment |
|---|---|
| (28c) The implementation of this Directive may have socio-economic consequences as well as a diverse impact between income classes and Member States. In this regard, a Social Monitor is established by this Directive to assess the implementation of the Directive and its impact in the different Member States, regions and income classes. The Social Monitor will assign reporting obligations to both the Commission and Member States. While the Commission will provide a more holistic overview, also in relation with the evolution of energy prices, Member States will describe the social measures taken to ease the potential socio-economic consequences of the Directive, with a special emphasis on the state of energy poverty. According to the assessments of the Social Monitor, if no significant progress is made to mitigate energy poverty, Member States might decide to prolong the transition period for households living in a condition of energy poverty. |
| Text proposed by the Commission | Amendment |
|---|---|
| (29) In view of the financial, economic and environmental effects on each Member State, such as the need of electrification of the transport sector, it is necessary to provide for a procedure authorising the introduction by Member States, for a set period, of other exemptions or reduced levels of taxation. For reasons of protection of environment and human health, including the reduction of air pollution, it is necessary to provide for a procedure authorising the introduction by Member States, for a set period, of specific increased rates. Such authorisation, following a justified request by Member States and on a proposal from the Commission, should be adopted by means of a Council implementing decision in accordance with Article 291 of the TFEU. Such measures should be under regular review. | (29) In view of the financial, economic and environmental effects on each Member State, such as the need of decarbonisation of the transport sector, it is necessary to provide for a procedure authorising the introduction by Member States, for a set period, of other exemptions or reduced levels of taxation. For reasons of protection of environment and human health, including the reduction of air pollution, it is necessary to provide for a procedure authorising the introduction by Member States, for a set period, of specific increased rates. Such authorisation, following a justified request by Member States and on a proposal from the Commission, should be adopted by means of a Council implementing decision in accordance with Article 291 of the TFEU. Such measures should be under regular review. |
| Text proposed by the Commission | Amendment |
|---|---|
| (35a) Delegated acts should be in line with and contribute to the objectives of the EU Green Deal. In this regard, delegated acts should not result in changes to the minimum levels of taxation which may undermine the achievement of the energy and climate targets, including sector specific targets referred to the Renewable Energy Directive, as well as of the objective to achieve climate neutrality by the 2050. The resulting change to the minimum level of taxation should not be equal to 0, unless meant for specific purposes defined in this Directive, such as for the promotion of renewable energy or to protect consumers and households living in a condition of energy poverty. Any change should be duly justified and supported by scientific analysis and assessments and their implications to the aforementioned targets. |
| Text proposed by the Commission | Amendment |
|---|---|
| (36) Every five years and for the first time five years after the entry into force of this Directive, the Commission should report to the Council on the application of this Directive, examining in particular the minimum levels of taxation, the impact of innovation and technological developments, especially as regards energy efficiency, the use of electricity in transport and the justification for the exemptions, reductions and differentiations laid down in this Directive. The report should take into account the proper functioning of the internal market, environmental and social considerations, the real value of the minimum levels of taxation and the wider relevant objectives of the Treaties. | (36) Every five years and for the first time five years after the entry into force of this Directive, the Commission should report to the European Parliament and the Council on the application of this Directive, examining in particular the minimum levels of taxation, the impact of innovation and technological developments, especially as regards energy efficiency, the use of electricity in transport and the justification for the exemptions, reductions and differentiations laid down in this Directive. The report should take into account the proper functioning of the internal market, environmental and social considerations, the real value of the minimum levels of taxation and the wider relevant objectives of the Treaties. |
| Text proposed by the Commission | Amendment |
|---|---|
| b) ‘low-carbon fuels’ shall mean low-carbon hydrogen and synthetic gaseous and liquid fuels the energy content of which is derived from low-carbon hydrogen, as well as any fossil-based fuels, which meet the technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to climate change mitigation according to Article 10 of Regulation (EU) 2020/852 of the European Parliament and of the Council36 and Annex I to Delegated Regulation (EU) […]/[…]37 . ‘Recycled Carbon Fuels’, as defined by Article 2(35) of Directive (EU) 2018/2001, shall be included in this category. | (b) ‘low-carbon fuels’ shall mean recycled carbon fuels as defined in Article 2, point (35), of Directive (EU) 2018/2001, low-carbon hydrogen and synthetic gaseous and liquid fuels the energy content of which is derived from low-carbon hydrogen as defined in Article 2, point (12), of Directive (EU) 2021/0425, as well as any fossil-based fuels, which meet the technical screening criteria for determining the conditions under which a specific economic activity qualifies as contributing substantially to climate change mitigation according to Article 10 of Regulation (EU) 2020/852 of the European Parliament and of the Council36 and Annex I to Delegated Regulation (EU) […]/[…]37 . |
| 36 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13) | 36 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13) |
| 37 Commission Delegated Regulation (EU) […]/[...] supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives, C/2021/2800 final (OJ […], p.[…]). | 37 Commission Delegated Regulation (EU) […]/[...] supplementing Regulation (EU) 2020/852 of the European Parliament and of the Council by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation or climate change adaptation and for determining whether that economic activity causes no significant harm to any of the other environmental objectives, C/2021/2800 final (OJ […], p.[…]). |
| Text proposed by the Commission | Amendment |
|---|---|
| An energy product has a dual use when it is used both as heating fuel and for purposes other than as motor fuel and heating fuel. The use of energy products for chemical reduction and in electrolytic and metallurgical processes, when energy products are used directly in or to provide a direct energy input to the process, or their consumption is connected to the process, shall be regarded as dual use, | An energy product has a dual use when it is used both as heating fuel and for purposes other than as motor fuel and heating fuel. The use of energy products for chemical reduction and in electrolytic and metallurgical process, including various hydrogen production methods, such as methane pyrolysis or carbon capture, storage and utilisation when energy products are used directly in or to provide a direct energy input to the process, or their consumption is connected to the process, shall be regarded as dual use, |
| Text proposed by the Commission | Amendment |
|---|---|
| Changes to the minimum levels of taxation shall be duly justified in view of reaching the objectives of the EU Green Deal, especially the targets set out in the Renewable Energy Directive, Energy Efficiency Directive and the objective to reach climate neutrality by the 2050, at the latest. | |
| Changes to the minimum levels of taxation shall not bring any of those minimum levels to 0, unless otherwise specified in this Directive. |
| Text proposed by the Commission | Amendment |
|---|---|
| Without prejudice to other Union provisions, Member States may apply under fiscal control exemptions or reductions in the level of taxation to: | Without prejudice to other Union provisions, Member States shall apply under fiscal control exemptions or reductions in the level of taxation to: |
| Text proposed by the Commission | Amendment |
|---|---|
| - generated from renewable gases and renewable fuels of non-biological origin; |
The inclusion of non-biological renewable fuels and renewable gases in the list of products eligible for the derogation is in line with the environmental assessment proposed in Annex I to the Directive. It is also in line with the Commission delegated regulation on taxonomy, which states that from 2036 onwards, electricity production in gas installations must be switched to 100% renewable gases. To achieve this goal, it will be necessary to mobilize all available hydrogen production technologies.
| Text proposed by the Commission | Amendment |
|---|---|
| Member States shall exempt consumers under PPAs, energy communities and active consumers whose self-production of electricity derives from products specified in this Article. |
By contributing to reduce GHG emissions and energy dependency and to provide flexibility to the grids, energy communities and prosumers self-producing renewable energy are essential cornerstone of the energy transition. In order to incentivise these practices in all Member States, the self-produced electricity should be exempted from taxation
| Text proposed by the Commission | Amendment |
|---|---|
| Member States may also exempt energy products and electricity used for high-efficiency cogeneration. |
Possible tax exemptions or reductions in the level of taxation for energy products and electricity used in the heat production process in the high-efficiency cogeneration should be maintained as set out in the current Directive, as the application of the minimum tax rate will lead to a significant and disproportionate increase in the tax burden.
| Text proposed by the Commission | Amendment |
|---|---|
| The Commission is empowered to adopt a delegated act in accordance with Article 29 to supplement this Directive by establishing a common certification framework identifying the origin of the electricity consumed. | |
| The certification shall provide information to consumers on the energy sources of the electricity consumed. Member States shall implement the certification by the end of the transition period. | |
| In line with Article 22 of the Energy Efficiency Directive, Member States shall mitigate distributional effects for measures and policies meant for the adequate functioning of the certification system. | |
| Once the certification system is implemented, Member States may exempt electricity produced from products specified in this Article. | |
| The Commission shall adopt that delegated act by 1st January 2025. |
| Text proposed by the Commission | Amendment |
|---|---|
| For the purposes of point (c), energy products and electricity used by households recognised as vulnerable may be exempt for a maximum period of ten years after the entry into force of this Directive. For the purposes of this paragraph, ‘vulnerable households’ shall mean households significantly affected by the impacts of this Directive which, for the purpose of this Directive, means that they are below the ‘at risk of poverty’” threshold, defined as 60% of the national median equivalised disposable income. | For the purposes of point (c), energy products and electricity used by households living in a condition of energy poverty as defined in the Energy Efficiency Directive shall be exempt for a maximum period of ten years after the entry into force of this Directive. |
| Text proposed by the Commission | Amendment |
|---|---|
| As set out in the proposal for a Directive of the European Parliament and of the Council on energy efficiency (recast) (COM(2021)558), energy poverty means a household’s inability linked to the non-affordability to meet its basic energy supply needs and lack of access to essential energy services as to guarantee basic levels of comfort and health, a decent standard of living, including adequate heating and cooling, lighting, and energy to power appliances, in the relevant national context, existing social policy and other relevant policies, as a result of an insufficient disposable income. |
| Text proposed by the Commission | Amendment |
|---|---|
| (da) reductions in the level of taxation, which shall not fall below the minimum levels set out in Table B of Annex I to this Directive, for energy products with a market share of less than 1% in that Member State. |
Member States shall impose reduced excise duty rates on fuels that are still in the early stages of market development. Advanced biofuels made from liquid biological material such as manure even reach a negative carbon footprint. In this way, they can contribute to the decarbonisation of sectors such as transport and agriculture. The precondition for this development is to reach a minimum market share of 1
| Text proposed by the Commission | Amendment |
|---|---|
| For the purpose of this Directive, households living in a condition of energy poverty shall be identified using the following criteria: | |
| (a) the share of energy costs to the disposable income, after deduction of housing costs, is more than double the national median share; | |
| (b) the share of disposable income spent on energy services is above the median and the disposable income after energy and housing costs falls below the “risk of poverty” threshold; | |
| (c) the absolute energy expenditure is lower than half the national median energy expenditure; | |
| (d) total population living in a dwelling with a leaking roof, damp walls, floors or foundation, or rot in window frames or floor. |
| Text proposed by the Commission | Amendment |
|---|---|
| After the end of the transition period, if according to the Social Monitor as set out in Article 30a no significant progress has been made, Member States shall continue to exempt households recognised in a condition of energy poverty. |
| Text proposed by the Commission | Amendment |
|---|---|
| Article 26a | |
| Reporting obligations of the Commission - Social monitor | |
| By … [two years after the date of entry into force of this Directive] and every two years thereafter, the Commission shall adopt and make publicly available a report providing detailed assessments of the situation of energy prices in Member States and on the EU market and of the effects of this Directive thereon. | |
| That Report shall include all relevant facts and figures covering energy prices developments, as well as an assessment of the effects of the implementation of this Directive on those prices, with special emphasis on households living in the condition of energy poverty as defined in this Directive. | |
| The Commission shall in this respect take into consideration the different starting positions of Member States and assess possible extensions of the transitional period and exemptions. This shall specifically apply to justified cases related to households living in the condition of energy poverty to prevent inadequate price jumps that may occur after the end of the transitional period. | |
| The Commission in cooperation with Member States shall use the criteria set out in this Directive to identify and report on the number of households that are living in energy poverty. |
| Text proposed by the Commission | Amendment |
|---|---|
| Before adopting the delegated act, the Commission shall inform the European Parliament of the composition of the experts’ committee, the state of play and the result of the consultation process with the experts. |
| Text proposed by the Commission | Amendment |
|---|---|
| Article 30a | |
| Reporting obligations for the Member States - Social monitor | |
| By … [two years after the date of entry into force of this Directive] and every two years thereafter, Member States shall report to the Commission on the implementation of social measures directly or indirectly linked to the effects of this Directive. | |
| Such report shall include at least: | |
| (a) the ratio of the actual amount of increased revenues passed to MS’ national budget as a result of revised energy taxation to the amount of resources used on social measures tackling. | |
| (b) energy prices developments and relevant data available covering or mapping the energy poverty per region, per household, and per income group | |
| (c) a detailed mapping of social instruments and measures implemented in the MS tackling the socio-economic consequences linked to the application of this revision. |
Connections
The dossier, the decisions on this text and its other versions.
No connections found for this item.
Sources & citation
Where the facts on this page come from, and how to cite it.
- Data source
- Licensed CC BY 4.0.
- Retrieved
- 25 September 2026
Cite as
European Parliament (2022). “DRAFT OPINION on the proposal for a Council directive restructuring the Union framework for the taxation of energy products and electricity (recast)”. Text, 16 February 2022. docId ITRE-PA-719575. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/ITRE-PA-719575 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/ITRE-PA-719575 (CC BY 4.0).
BibTeX
@misc{epw-text-itre-pa-719575,
author = {{European Parliament}},
title = {{DRAFT OPINION on the proposal for a Council directive restructuring the Union framework for the taxation of energy products and electricity (recast)}},
year = {2022},
date = {2022-02-16},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/ITRE-PA-719575}},
url = {https://news.eu-parl.st-solutions.dev/texts/ITRE-PA-719575},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId ITRE-PA-719575. Data: EP Open Data API: document record (CC BY 4.0)}
}