Briefing

Fuel and carbon taxation in the EU

June 23, 2010

How a revised Energy Taxation Directive could make transport greener and the economy more efficient.

Pricing is of the utmost strategic importance in climate policies, not least in the transport sector where the behaviour of millions of actors is affected. Higher prices on fossil fuels give everyone incentives to reduce their climate impact as cheaply and as easily as possible. If we don’t make wise use of efficient market instruments the costs of an ambitious climate policy will rise unnecessarily, and perhaps dramatically.

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