Taxation

The ‘Fit for 55’ regulatory framework for energy taxation aims to sync taxation with the EU’s climate policy objectives and allow users to switch to cleaner fuels by creating positive price signals.

It is paramount to ensure that the most energy-efficient fuels are less highly taxed so that they remain accessible and affordable for all.

The European energy taxation regime has incentivised the uptake of liquid gases and contributed to meeting the EU climate objectives. However, the affordability of renewable energy will continue to deter consumers.  

Renewable liquid gases will be the affordable energy source, heating and driving off-grid communities by 2050, but only if legislation does not favour certain technologies over others and achieves a technology-neutral financing system. 

Appropriate price signals should be created, distinguishing between low-carbon and high-carbon fossil fuels, to enable liquid gases and renewable liquid gases to fulfil their potential in the context of the European Green Deal.

The role of liquid gases

Liquid gases today cover the off-grid heating needs of more than 20 million EU citizens and 700,000 businesses, predominantly in areas where the natural gas network is unavailable. To enable their transition towards climate-neutral solutions, consumers in these areas need to have access to cleaner-burning fuels at an affordable price.

To avoid exacerbating energy poverty and ensure the competitiveness of rural businesses, Member States should also have the possibility to provide specific derogations to energy used for heating purposes in both residential and business applications.

by the numbers

Liquid Gases by
the Numbers.

  • Liquid gases cover the energy needs of 20 million EU citizens and 700 000 businesses in rural and off-grid areas, and should therefore remain affordable and accessible to all. 20% 20%

%

  • To avoid exacerbating energy poverty that affects around 22,5% of people in rural areas, derogations should be allowed for energy used for heating purposes in both residential and business applications. 22,5% 22,5%

  • Autogas is the number one alternative fuel in the EU with over 8.5 million vehicles in circulation. 8.5% 8.5%

We must support alternative fuels with a track record of success.

We must give Member States the necessary flexibility to tailor energy taxation to the needs of households and businesses.

We must ensure consistency with the Renewable Energy Directive.

We must ensure a level playing field for heating fuels.

Liquid Gas Europe advocates for:

  1. A full cooperation with the European Commission in implementing the ETS II in a fair and fruitful way.
  2. The creation of a tax system that supports the goals of CO2 reductions and climate neutrality, aimed at reducing the taxes for the least emitting fuels.
  3. The recognition of sustainable fuels towards renewable targets in heating.
  4. Appropriate road and fuel taxes to incentivise consumers to choose vehicles running on liquid gases.