Draft law proposes new CO2 tax.

The draft of upcoming Law of Energy Efficiency and Renewable Energies envises a tax on CO2 emissions derived form natural gas and petrol consumption.

The goal of this tax is to fund renewable energies and energy efficiency programs in the same way that it is currently done through taxes on electric power. The reasonig behind this measure is that both renewables and efficiency are profitable for the energy system as a whole so it does not make much sense to fund them through electric power bills and not other forms of energy. If applied, the new tax would come coupled with tax reductions on more efficient energy uses so that the net impact on tax collection woud be neutral.

The new tax would have its greater effects on transportation, heating systems and fossil fuel consuming industry. However, it would not apply to heavy industrial consumers that participate in the carbon market: these would be excempt from the tax because they are already paying for their emissions in another way.