Green tax coming from 2027
As of January 2027, fossil fuels – i.e. gasoline, diesel, natural gas and any other fuel that emits pollutants and is used in buildings for heating, in road transport or in small industries – will be charged with a pollutant fee added, so that emissions are reduced by 42% by 2030 compared to 2005.
The European Commission is passing the responsibility to member-states to mitigate the impact on households and businesses from the implementation of the new regulation on decarbonization in vehicles, residences and enterprises.
As the date of application of the regulation approaches, and recognizing the pressures it will exert on energy prices and the competitiveness of businesses, Brussels issued member-states with a number of recommendations on Monday and announced its intention for additional guidelines for reducing energy taxation.
The Greek government has been the recipient of protests from business operators in the sectors that will be affected by the new regulation, as the costs they will incur are unbearable, close to 1 billion euros per year for the 2027-2032 implementation period and much more in the event of high fluctuations in carbon emissions prices.
It is estimated that over 150,000 small and medium-sized enterprises will be affected by the implementation of the regulation and more than 1.5 million households that already have difficulty meeting their energy and transport needs (vulnerable energy and transport households).
According to a recent study by the Institute for European Energy and Climate Policy (IEECP), the country’s small and medium-sized enterprises will bear an additional cost of €2 billion in the period from 2027 to 2032 – i.e. almost €330 million per year – which could rise to €3 billion in the event of higher prices.
The total burden on consumers based on current CO2 prices (€45 per ton), and assuming that fuel consumption in 2027 will be the same as today, is estimated by the Association of Petroleum Trading Companies at €800 million per year.
Kathimerini
