Commission launches debate on 'green' tax reform

Shifting tax burdens from labour to environmentally damaging activities is one of the main options of a new Green Paper launched on 28 March by Commissioners Dimas and Kovacs. With climate change and energy security issues high on the EU's agenda, the Commission wants to begin a broad consultation on the use of market-based instruments to stimulate sustainable consumption and production. Taxes, charges, subsidies and tradable permits can help realise environmental and energy objectives by taking into account the hidden costs of unsustainable behaviour and production.