European Court of Auditors calls for improvements in energy taxation

Current tax rates for different energy sources do not reflect the extent of pollution caused by their use. That’s the conclusion of an analysis by the European Court of Auditors published Monday. While energy taxes could help combat climate change by providing incentives for utilities to switch to renewable energy, the Court said, they do not reflect the extent of pollution caused by fossil fuels. But fossil fuel subsidies have barely declined over the past decade, it says. As a result, the relative cost of renewables has risen, and the energy transition is being delayed.