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EC to reconsider bunker fuel tax exemption and rallies deployment of alternative fuels

11 Dec 2020

The European Commission on Wednesday (9 December) published its strategy paper ‘Sustainable and Smart Mobility Strategy-putting European transport on track for the future’.

When revising the Energy Taxation Directive, the Commission said it will aim at aligning taxation of energy products and electricity with EU energy and climate policies.

As part of the ongoing impact assessment, it is looking closely at current tax exemptions, including for aviation and maritime fuels, and will make proposals on how best to close any loopholes in 2021.

The taxation of energy content for various fuels should be better aligned, and the uptake of sustainable transport fuels better incentivised.

With regards to shipping, the paper states the deployment of alternative marine fuels, efforts under the zero pollution ambition should be made to drastically reduce the broader environmental footprint from the maritime sector. 

The Commission also aims to prioritise the establishment of wide ranging ‘Emission Control Areas’ in all EU waters ultimately aiming at zero pollution to air and water from shipping for the benefits of sea basins, coastal areas and ports.

In particular, the Commission said it has spearheaded efforts for covering the Mediterranean Sea and it aims to start similar work for the Black Sea.

Furthermore, the EU legislation on ship recycling will be reviewed, in order to determine possible measures to strengthen that legislation, i.e. to further promote safe and sustainable ship recycling practices.

Photo credit: guillaume-perigois
Published: 11 December, 2020


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