MEP says tax incentives would boost energy efficiency

John Attard Montalto has told fellow MEPs that the only way to bring about energy efficiency across the EU is by granting incentives to consumers to invest in energy-saving devices.

Speaking during a debate at the European Parliament in Brussels on a report about maximising the potential of energy efficiency, he suggested that taxation incentives would fulfil this purpose.

Dr Attard Montalto noted that after the steep rise in the cost of oil and the resultant hikes in petrol and diesel costs, electricity surcharges and other hefty bills for consumers, everyone had suddenly started to focus on energy saving, alternative energies and energy efficiency.

Although this was positive, one had to start translating words into action and not merely react to a sudden crisis.

"The only way to reach our targets is motivation of a fiscal nature," he told MEPs.

This, he suggested, could take the form of tax credits, reduced VAT, reduced licence payments or other fiscal incentives.

"This in turn will depend on how far each particular state will be prepared to motivate its consumers. Member states must make a decision to entice their citizens to invest in new technology which will enable efficiency in energy use.

"The decision depends on how far individual states are prepared to forfeit part of their recurrent income by way of taxes, levies or surcharges. This is the only way forward."

In its report the European Parliament said that increasing energy efficiency was the greatest, fastest and cheapest reaction to energy security worries, rising and volatile energy prices and environmental concerns.

The Parliament called for existing legislation in the field to be implemented and for the Commission to develop new measures in its forthcoming Energy Efficiency Action Plan to be published in the coming days.