conference - eesc.europa.eu · contributors: etsa project...
TRANSCRIPT
1
Conference
TowardsacommonEUtaxpolicyinfavourofthe
greenenergysectorBrussels
1December2016Shortreport
Formoreinformationabouttheresearchproject,see
http://www.idee.ceu.es/en/research/areas-of-research/competit-law-regulation-in-the-internal-market/jean-monnet-project-etsa-ce)
Contributors:ETSAproject(Ref.553321-EPP-1-2014-1-ES-EPPJMO-PROJECT)andDER21014-58191-P
2
TowardsacommonEUtaxpolicyinfavourofthegreenenergysectorBrussels
1December2016Our conference took place on the 1st of December, at the European Economic &SocialCommittee(EESC).TheconferencewasorganisedbytheCatholicUniversityofLouvain, the CEU San Pablo University and the European Economic & SocialCommittee.The main objective of the conference was to open the debate on EU’s energytaxation and State aid regulation by gathering specialists of the energy field fromdifferent sectors.We indeed believed that there is a need to rethink EU’s energypolicy considering Europe’s economic, social and environmental goals. Theconference highlighted the diversity of interests related to EU’s tax policy, amongothers:thecompetitivenessofEuropeanindustries,theobjectiveofcompetition,theneedtoprotecttheenvironment,thefightagainstclimatechangeandtheneedforenergysecurityandaffordableenergysources).The conference contributed to EESC’s objective to include EU civil society in thediscussions surrounding all aspects of European energy policy, including energytaxes.Energy taxation iscertainlyakeyaspectofEU’senergypolicyas itdoesnotonlyhaveanimpactonEU’scitizensintermsofjobsbutalsointermsofeconomicgrowthandEUsustainabledevelopment.Theconferencehasbeenstructuredasfollowsinfourparts:(1)ashortintroductionbyProf.MartaVillarEzcurra(CEUSanPabloUniversity);(2)afirstsessiononenergytaxation as an instrument to internalise environmental costs, moderated by AlicePirlot (FNRS; Catholic University of Louvain); (3) a second session on energy taxincentives & EU State aid law, moderated by Prof. Edoardo Traversa (CatholicUniversityofLouvain);(4)aclosingsessionbyProf.JeronimoMaillo(CEUSanPabloUniversity).Inhershort introduction,Prof.MartaVillarEzcurraexplainedthemainobjectiveofthe research project entitled “Energy taxation and State aid control: looking for abettercoordinationandefficiency”thatshehasbeenleadingfortwoyears(seeherpowerpointpresentation, annex II). Shepointedout that it is important to rethinkthedefinitionofenvironmentaltaxesinEUStateaidlawandtolookforalternativestothecurrentassimilationofenergytaxesfallingundertheEnergyTaxDirectivewith
3
‘environmental taxes’ that benefit from a privileged treatment under EU State aidlaw.Inthefirstsession,wediscussedtaxesusedtodiscouragepollutingbehavioursandinternalise environmental costs. We also discussed potential reforms to theEuropeanenergy tax framework, including thepastproposal tomodify theEnergyTaxDirectiveandnew ideas toboost thedecarbonisationwithin theEU.First,Ms.MalgorzataKicia(EuropeanCommission,DGEnvironment)presentedsomethoughtsonthecurrentstateofenvironmentaltaxesintheEU,highlightingsomeofthemainfeaturesofEUenvironmental taxation.Second,Ms.MalinaKoleshanska-Nussbaum(EuropeanCommission,DGTaxud)discussed theroleofenergy taxation in theEU,highlighting thecurrentEUframework, themainelementsof the2011proposal tomodifytheEnergyTaxDirectiveandthemainreasonswhythisproposalfailed.Ms.Malina Koleshanska-Nussbaumalso drawour attention to a possibleway forward,including new political and technical proposals. Finally,Mr. JamesNix (Director ofGreen Budget Europe) gave us his viewpoint on key fiscal reforms and alliedregulatorychangesneededtoboostdecarbonisation intheEU.Hepointedouttheneed to categorise “undertaxation” as a fossil fuel subsidy and the role of theEuropeanSemester topush forenvironmental fiscal reform,considering that therearegoodargumentsinfavourofgreentaxation.The second session focused on the role of taxation in encouraging positivebehaviours,suchastaxincentivesinthefieldofenvironmentalprotectionortaxincentives for renewable energy. This session also opened the debate on EU’senergy taxation, highlighting the diversity of perspectives on EU’s energy (tax)policy. The session draw the attention on the complexity to reconcile thesedifferentviewpoints.Someofthespeakershoweverinsistedontheneedtofindagood balance between these different interests (social, economic,environmental). First, Ms. Elisabetta Righini (King’s College London; Latham &WatkinsLLP)setthescene,explainingthe interactionbetweenEUStateaid lawand energy tax incentives. Second, Prof. Traversa structured the session in theform of a debate, asking each of the panellists to express their view on their“idealEUenergy taxpolicy in twentyyears fromnow”andon the roleof fiscalinstruments, tax incentives, in this ideal legal frameworkonenergy.Eachof thepanellistswasalsoaskedtoreactonwhethertax incentivesshouldratherfocuson production or on consumption.Mr. Philippe Lamberts (MEP, co-chair of theGreens/European FreeAlliance) pointedout that there is a pressing urgency to
4
mitigateclimatechangeandthatwecannotwaitany longer. Inhisopinion, theEUshouldmovetowardsagenuine‘EnergyUnion’.Mr.PetruDandea(MemberoftheEuropeanEconomic&SocialCommittee)highlightedtheroleof theEESC inreconciling different views and interests on EU’s tax energy policy, using theexample of a discussion regarding a new European energy/carbon tax that hadtaken place within the EESC. Finally, Ms. Anna Theeuwes (representative ofBusinessEurope)gaveusherperspectiveontheneedtodefineclearpolicygoalsbeforeadoptingtaxesonenergysources.Shealsomadeclearthat,inheropinion,anEUETSshouldbepreferredoverenergytaxes.Weconcludedthesecondsessionwithasmalldebatewiththeparticipants(seethe list, annex I) and closingwords from Prof. JeronimoMaillo (CEU San PabloUniversity).
5
AnnexI:Listofparticipants
Pierre-Edouard Altieri College of Europe Kris Bachus KU Leuven Anthony Baert Groen Pieter Baert BusinessEurope Eugenia Bardaro Cepess Anne-Caroline Burnet Cabinet du Vice-Président et Ministre Maxime Prévot Isabelle Callens ORES Rémi Collombet-Gourdon College of Europe Florence Debrouwer Cabinet Fremault Xavier Defoy Tax Institute (ULg) Justine Diepart Stibbe Vincent Doumergue College of Europe Ludovica Sara Fondi CEDEC Pauline Fournols College of Europe Burhan Gurbanov College of Europe Malgorzata Kicia DG Environment Malina Koleshanska-Nussbaum DG Taxud Eva Maria Kotorova College of Europe Philippe Lamberts MEP Marie Lamensch VUB, UCLouvain, KULeuven Noemie Laumont EDORA Jerónimo Maillo Universidad CEU San Pablo Pavla Mandatova EURELECTRIC Koen Meeus Federal Public Service Environment - Climate Change Section (Belgium) Carlo Monegato Latham & Watkins Noemie Monnart Cepess Fatima Najjar ORES James Nix Green Budget Europe Diana Pál-Hegedüs College of Europe Alice Pirlot UCLouvain - FNRS Research Fellow Javier Porras CEU San Pablo
./.. Leonie Reins KU Leuven Isabelle Richelle ULG - Tax Institute Elisabetta Righini Latham & Watkins LLP / King's College London Thibault Roy College of Europe Javier Ruiz Calzado Latham & Watkins
6
Antoine Tanzilli Cabinet of the Minister Prevot Anna Theeuwses BusinessEurope Flavia Tomat European Commission Edoardo Traversa UcLouvain Els Van Hover Vlaamse Overheid, LNE Amaury Vanlangendonck Euromonitor International Fanny Vanrykel Tax Institute (ULg) Damien Verhoeven Liedekerke Wolters Waelbroeck Kirkpatrick Samuel Verschraegen College of Europe Marta Villar CEU San Pablo University Sébastien Wolff UCLouvain
7
AnnexII:PresentationofProf.MartaVillarEzcurra
INTRODUCTION ON THE PROJECTEnergy taxation and State aid control: looking for a better coordination and
efficiency
Marta Villar - Tax Law Professor
Brussels, 1st December 2016
Jean Monnet Project ETSA - CERef.: 553321-EPP-1-2014-1-ES-
EPPJMO-PROJECT
Brussels, 1st December 2016 [email protected]
ETSA PROJECT
2
8
Brussels, 1st December 2016 [email protected]
THE USE OF THE CONCEPT “ENVIRONMENTAL TAX”
Assumptions
üLack of a common understanding of what energy taxes orenvironmental taxes are.
v A few different definitions.ü Inaccurate definitions and terms used in the EUregulations and Commission’s guidelines causeuncertainty within the State aid framework.
vWhy?
3
Brussels, 1st December 2016 [email protected]
WHAT IS THE RESEARCH QUESTION?
Need of clarifying the key legal concepts related to Stateaids and tax measures in the energy sector.
q To improve legal certainty
q To favour greater efficiency with regard to taxbenefits and reductions from environmental andenergy taxes
4
9
Brussels, 1st December 2016 [email protected]
PRELIMINARY CONCLUSIONS
ENVIRONMENTAL TAXES AND ENERGY TAXES PRELIMINARY CONCLUSIONS
q They cannot be considered two overlapping concepts butsome taxes may fit into both categories.
q Energy goals (to ensure a competitive, sustainable andsecure energy system) may not always coincide withenvironmental goals.
5
Brussels, 1st December 2016 [email protected]
STATE AID REGULATIONEnvironmental taxes and energy taxes in the GBER and the 2014 guidelines
q Broad definition of “environmental tax” (no definition of energy tax)
üBoth taxes with a polluting tax base and with an environmental effect(they may not lead to a higher level of environmental protection).
q Tax incentives, reductions and exemptions: They are admitted only if theycan at least indirectly contribute to a higher level of environmentalprotection.
üWhat about energy goals? - GBER: the only aid schemes in the form oftax reductions allowed within the GBER are the ones related to theenergy taxes that fulfill the conditions of the ETD – they may not leadto a higher level of environmental protection.
6
10
Brussels, 1st December 2016 [email protected]
THE PATH
q Inconsistency
ü Harmonized energy tax incentives are qualified asenvironmental aid in the State aid context.
v Inconsistent with the objectives of environmental & competition policies.
v Rationale not convincing.ü Definition of environmental taxes in the GBER and in the 2014
guidelines is inconsistent with their approach and generalobjectives.
7
Brussels, 1st December 2016 [email protected]
HOW CAN WE SOLVE THIS INCONSISTENCY? 1.Modifying the current definition of environmental tax
q To accommodate it to the general concept of “environmental tax”q To incorporate to the “environmental tax” concept those energy taxes
out of the scope of the ETD but with similar characteristics2.Creating an independent regulation for energy taxes
q To include a unique reference to current energy taxes and their taxincentives instead of using the reference to “environmental taxes”
3.A combination of 1 and 2q To regulate environmental protection measures and other policy-driven
measures in a separate wayq To substitute environmental tax references for energy harmonized-taxes
POSSIBLE ALTERNATIVES
11
Brussels, 1st December 2016 [email protected]
OUR PROPOSAL
qTo refer directly to the concept of “harmonized energytax” (and not to the concept of “environmental tax”).
qTo split energy and environmental legal references withinthe GBER and the guidelines.
qTo review the current compatibility criteria towards moreaccurate, objective and non-discriminatory criteria.
9
Brussels, 1st December 2016 [email protected]
GENERAL DEFINITIONS
ü Environmental taxes - taxes that encourage a behavioural change topromote environmentally friendly behaviour and discourageenvironmental damage
§ Structure of the tax
§ No objective of the taxü Energy taxes - a subset of environmental taxes? Not always
§ Are not always able to achieve environmental protection
§ Can achieve other legitimate goals associated with other EUpolicies (competitive energy market, energy efficiency …)
10
12
Brussels, 1st December 2016 [email protected]
Thank you very much for your attention!
MORE INFORMATION AT http://www.idee.ceu.es/en/research/areas-of-
research/competit-law-regulation-in-the-internal-market/jean-monnet-project-etsa-ce
11