CETRiE - Carbon and Energy Tax Reform in Europe


Objective of the study
Media coverage and communication


CETRiE is a partnership between the European Climate Foundation and Green Budget Europe in association with Vivid Economics. The rationale of this project is the awareness that a way out of the crisis can only be achieved with a combination of sound public finances and exploration of new policies to reduce emissions.

After almost four years of financial and economic crisis, most Member States of the European Union are facing high budget deficits and are struggling with high public debts. Twenty-five of the Member States (with the exception of the UK and the Czech Republic) will shortly have to meet the strict rules laid down in The Treaty on Stability, Coordination and Governance (TSCG).

However, Member States have also committed themselves to an ambitious climate package to be achieved by 2020: Reduced greenhouse gas (GHG) emissions by 20% on 1990 levels; 20% energy savings; and 20% renewable energy in the energy mix.

In the context of these environmental targets and the urgent need for fiscal consolidation, the CETRiE project seeks to present and discuss the results of a major new report prepared by VIVID Economics. The report explores options for carbon-energy tax reforms in targeted EU Member States; the revision of the Energy Tax Directive (ETD); a tighter cap in the EU-ETS; and smart border carbon adjustments.

Objective of the study

The report provides solid and well-researched input into the debate about how best to deliver fiscal consolidation in the current very difficult economic and fiscal situation. It reveals that carbon and energy taxation may raise significant revenues while having a less detrimental macro-economic impact than other forms of indirect and direct taxation.


CETRiE Extended Executive Summary (2015)

CETRiE Executive Summary (2012)

Full CETRiE report (2012)

Selected Chapters of the CETRiE report (2012):
Deutsch / Français / Español / Magayar / Polski / Slovenščina

Media coverage and communication

Interview in Dnevnik with Kai Schlegelmilch, 4 October 2012, by Marjeta Kralj (Hungarian)

Article in Energetika, 21 September 2012, by Simona Drevenšek (Slovenian)

Article in Vecer, 21 September 2012
Original Article, 24 September 2012, by Simona Drevenšek (Slovenian)

Interview in Finance with Kai Schlegelmilch, 16 September 2012 (Slovenian)

Le Monde, 11 September 2012: La taxe carbone n'est pas une taxe "bobo"
''Un rapport récent conclut que les mesures de taxation de carbone peuvent générer d'importants revenus tout en ayant des répercussions moindres en termes de PIB, d'emploi et de coût social par rapport aux autres formes de taxes envisagées.''
Le Monde published the Op-Ed signed by Michel Rocard (former French Prime Minister), Hans Ei-chel (former German Minister of Finance), Yannis Palaiokrassas (former EU Commissioner for En-vironment and Fisheries) and Martin Bursík (former Czech Minister for Environment). They are a good example that Environmental Fiscal Reform is not an avant-garde any more but should be real-ity. Read the original text.

Press release from 16 May 2012

Open letter to Europe's Finance Ministers, 14 May 2012
In response to the report, Green Budget Europe brought together a number of ex-Finance Ministers to sign an open letter to Europe's Finance Ministers meeting in Brussels on 14 and 15 May, to call on policy makers to take note of the report's findings and to explore smart taxation as a means of achieving fiscal consolidation.

Contact: constanze.adolf (at) green-budget.eu