EU auditor: Fossil fuels get more tax breaks than renewables

The European Union’s external auditor says the amount that energy sources are taxed doesn't mirror their greenhouse gas emissions

BRUSSELS -- European Union nations often still tax and subsidize their energy sources in contradiction with their committed climate goals, and a majority spend more supporting fossil fuels than renewables.

After reviewing carbon pricing measures, energy taxation levels and energy subsidies in the 27-country region, the EU’s external auditor warned Monday that the amount that energy sources are taxed does not mirror their greenhouse gas emissions.

The European Court of Auditors found that more polluting energy sources may get a tax advantage compared with others with better carbon efficiency. Coal, for instance, is on average taxed less than natural gas — which is more carbon efficient — and some fossil fuels are taxed less than electricity, which could be produced by low-carbon sources.

Auditors said their review aims to contribute to the debate around the European Commission proposal to change the bloc's energy tax directive, which sets minimum tax levels.