European Union Brewing the Introduction of Carbon Tax

According to a report on June 2, 2010 from a French media (www.lesechos.fr), the European Commission scheduled on June 23, 2010 to start the discussion on the carbon tax program. It is learned that the carbon tax price envisaged will be about EUR 20 for each ton of CO2.

As per the report, the carbon tax program of the European Union will be introduced in a Directive of the European Union in the name of "energy tax", also seen as carbon tax by considering the carbon emissions. The carbon tax of the European Union will be levied on varieties of energy such as fuel oil, fuel gas, and coal, with the amount of carbon tax to be calculated upon the carbon emissions and utilization ratio in the production process of different energy.

The carbon tax program will also consider implementing reduction and exemption measures on some fields, mainly concerning agriculture, low-income families, and poor and remote areas, the report said.

Currently, the carbon tax program of the European Union is still in draft, which is scheduled for an internal discussion in the European Commission on June 23, 2010.

It is reported that if all goes well, the European Union may gradually implement the carbon tax between 2013 and 2018.