Europe pushes plans to raise price of diesel

The European Commission pushed controversial plans last Wednesday for a tax on carbon emissions to promote clean energy use by increasing the cost of dirty fuels such as coal and diesel.

The aim is “to promote energy efficiency and consumption of more environmentally-friendly products,” the European Union executive said.

It would tax carbon dioxide emissions at €20 per tonne while also taxing the “actual energy that a product generates” – at €9.60 per gigajoule for motor fuels and €0.15 per gigajoule for heating fuels.

The idea is for the 27 EU states “to redesign their overall tax structures in a way that contributes to growth and employment by shifting taxation from labour to consumption.”

EU taxation commissioner Algirdas Semeta said the target date for adoption after negotiations with the states and the European Parliament would be 2013 – but that industry would get until 2023 to adapt.