EU Commission launches debate on further use of market-based instruments to support environment and energy related policy purposes
Environment Commissioner Stavros Dimas said: "Market-based instruments such as emissions trading, environmental taxes and targeted subsidies harness the power of market forces to protect the environment. This more flexible and cost-effective approach has proved its value but it is still underutilised. In launching this Green Paper our goal is to promote the use of market-based instruments whenever they are appropriate to the circumstances so that Europe's environment is protected most effectively."
László Kovács, the Commissioner responsible for Taxation and Customs Union said: "Fiscal policies will have an important role to play in the delivery of the ambitious objectives endorsed by the last European Council." He added: "Taxation should in the first place discourage what is undesirable rewarding at the same time all sorts of positive behaviour, being it energy savings or environment-friendly activities. Tax revenues can then be used to favour economy-friendly activities, such as innovation or jobs."
Read the full press release IP/07/430 published on 28 March 2007 on the website of the European Commission.
The Green Paper builds amongst others on the results of Ecologic’s project: The Use of Market Incentives to Preserve Biodiversity.