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Enegry-svaing industry support EU tax plan Energy-saving industry supports EU tax plan
ENDS Environmental Daily Monday, May 26, 1997 A controversial European Commission proposal to set EU-wide minimum levels of excise duty for most types of energy has won support from an association that represents "sustainable energy technology businesses. The European Business Council for a Sustainable Energy Future (known as E5) describes the proposal as "a small step in the right direction".
E5's support contrasts with the position of most EU business groups. Several trade association have severely criticised the proposal, especially those representing heavy energy-using sectors such as chemicals. The European employers' association, UNICE, said recently that the proposal would damage industrial competitiveness, be ineffective at reducing greenhouse gas emissions, and have "no real impact on job creation"
In E5's comment, executive director Paul Metz says that: "[The Commission's] proposal is not perfect, but a small step in the right direction. It will...stimulate energy users in business and households to take more energy conservation measures. Many such available opportunities are profitable investments, so-called 'no-regret' measures. The overall economic effect will be positive...and create many jobs in Europe."
E5 calls for some changes to the proposal. It wants the Commission to more clearly relate proposed levels of taxation to the carbon or uranium content of fuels in order to make the most polluting fuels also the most expensive. Whereas the Commission's proposal calls on member states to maintain fiscal neutrality by reducing other taxes to compensate for increased taxes on fuels, E5 says that fiscal neutrality should be a goal only in countries with the highest general taxation levels.
E5 was launched last year to represent businesses operating in a range of "sustainable energy" sectors, such as renewable energy and cogeneration. Other sectors represented in its membership are rail transport and telecommunications. Its members stand to gain from moves to put pressure on fossil fuel use, including policies to curb greenhouse gas emissions.
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