The European Parliament is pushing for an early extension of the Emissions Trading Scheme (ETS) to road freight transport, which will lead to even more expensive diesel. Consumers will remain exempt from this fuel tax until 2029.

This is according to a proposal on which the Parliament's Environment Committee (ENVI) has reached a compromise. The plans, which have yet to be ratified in a vote, include introducing an ETS for commercial road transport in 2025, a year earlier than the European Commission originally planned.

Earlier this month, the EU parliament's transport committee opposed the plans because fuel prices are already skyrocketing even without an additional levy. To prevent greater consumer dissatisfaction, the parties in Brussels now want petrol stations to make a distinction between commercial and non-commercial customers until 2029.

To prevent transport companies from being hit too hard by the fuel tax, the Environmental Committee also wants a price ceiling of 50 euros per ton of CO2. Fuel suppliers should also be forced to absorb some of the extra costs themselves, the committee members argue. They are also likely to vote for an 'emergency brake', whereby the expansion of the ETS will not go ahead if fuel prices are higher than the record level of March this year.

The EU fuel tax is a controversial part of the European Commission's 'Fit for 55' greening package. For road transport, it requires fuel suppliers to acquire CO2 allowances, a process that gives the ETS the character of a fuel tax.

The vote in the environmental committee of the EU parliament takes place next Tuesday. Another plenary vote will follow in June. The result must then be negotiated with the member states in the European Council.

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Source: Nieuwsblad Transport

May 17, 2022