Europe’s diesel cars received indirect subsidies totalling almost €27 billion last year through lower fuel taxes, a new study has found. Diesel fuel was taxed at, on average, 14 cent less per litre than petrol in 2014, according to Europe’s tax deals for diesel, which was published by T&E last month.
Six of the largest oil and gas companies in Europe have called for the UN to let them help devise a global carbon pricing system. Responding to rising pressure ahead of the Paris climate talks at the end of this year, the chief executives of Royal Dutch Shell, BP and BG Group from the UK, France’s Total, Norway’s Statoil and Italy’s Eni have sought direct talks with governments.
Further decarbonisation of transport through a shift to alternative fuels and electro-mobility forms a major part of the European Commission’s strategy for an ‘energy union’, unveiled last week. With transport being responsible for more than 30% of EU energy consumption and a quarter of emissions, the Commission said legislation on ‘decarbonising the transport sector, including an action plan on alternative fuels’ would be put forward in 2017.
Twenty-one Nobel prize winners have urged the EU to immediately implement the Fuel Quality Directive (FQD) which would label tar sands as dirtier than other fuels. ‘The extraction of unconventional fuels – such as oil sands and oil shale – is having a particularly devastating impact on climate change,’ wrote the laureates in a letter to European commissioners and environment ministers earlier this month.
by Magnus Nilsson, T&E Senior Campaigner
Raising taxes on fossil fuels is pretty much the only climate policy tool that in all circumstances delivers real emission reductions. Telling people that the cost of petrol and diesel will have to rise may be a difficult message for politicians to put across, but if this method is rejected or not possible, climate policy will simply become unnecessarily costly.
350 000 jobs ‘lost’ and chance to cut imports and emissions missedAverage fuel tax in Europe has fallen in real terms by €0.10 per litre since 1999, which has cost 350 000 jobs. These are the findings of a new study by T&E, which coincides with publication of the Commission’s proposals to revise the EU Energy Tax Directive. The proposed revision seeks to narrow the gap between Europe’s differing rates of diesel tax but leaves untouched the current ban on taxing aviation and shipping fuels.