International
Labour
Organization
European
Union
International
Institute for
Labour Studies
Green policies in
the EU: A review
EC-IILS JOINT DISCUSSION PAPER SERIES No. 14
GREEN POLICIES IN THE EU: A REVIEW
GREEN POLICIES IN THE EU: A REVIEW
INTERNATIONAL LABOUR ORGANIZATION
INTERNATIONAL INSTITUTE FOR LABOUR STUDIES
Abstract
This paper is part of a series of discussion papers that have been prepared by the International Institute
for Labour Studies (IILS) within the framework of the joint project “Addressing European labour market
and social challenges for a sustainable globalization”, which has been carried out by the European
Commission (EC) and the International Labour Organization (ILO). The discussion paper series provides
background information and in-depth analysis for two concluding synthesis reports that summarize the
main findings of the project. This paper relates to the second part of the project “Preparing European
labour markets to adapt to the long-run challenge of ensuring the joint social and environmental
sustainability of globalization” and the concluding synthesis report “Towards a Greener Economy: The
Social Dimensions”. The main purpose of this discussion paper is to examine the variety of green policies
that EU Member States have implemented to address environmental sustainability. The paper starts with
presenting available green policy instruments, such as regulations, tax instruments, the EU emission
trading system, research and development (R&D) and public investment. It further discusses how these
instruments are adopted in different EU Member States. Furthermore, existing green labour market
policies in the EU are examined and the policy gaps are discussed.
TABLE OF
CONTENTS
Main Findings ................................................................................................................................................ 1
A.
Green Policy Instruments for the Environment........................................................................... 2
B.
Regulations .......................................................................................................................................... 4
C.
Tax Instruments ............................................................................................................................. 5
1.
Energy and Mineral Oil Taxes ......................................................................................................... 6
2.
Transport Taxes.................................................................................................................................. 8
3.
Taxes on Emissions and Air Pollution ......................................................................................... 10
4.
Tax Deductions and Other Special Provisions ........................................................................... 11
Trends in Taxation .................................................................................................................................... 14
5.
D.
Subsidies ............................................................................................................................................ 17
The European Union Emission Trading System (EU ETS) ................................................ 17
1.
The first trading period of the National Allocation Plans (2005-2007) .................................. 18
2.
The second trading period of the National Allocation Plans (2008-2012) ............................. 18
3.
The third trading period without National Allocation Plans (from 2013 onwards).............. 19
E.
Research and Development............................................................................................................ 21
F.
Public Investment ............................................................................................................................ 24
G.
Green Labour Market Policies .................................................................................................. 25
References .................................................................................................................................................. 28
Appendix 1 ................................................................................................................................................. 29
vii
List of figures
Figure 1: Environmental tax revenues by EU Member States and type of tax, 2009, % of GDP ... 15
List of tables
Table 1: Major policy instruments in the EU .............................................................................................. 4
Table 2: Fiscal policy instruments for sustainable transport ..................................................................... 9
Table 3: Common taxes in the EU ............................................................................................................. 11
Table 4: Energy efficiency measures ........................................................................................................... 12
Table 5: Environmental tax revenue in the EU Member States, 2008-2009........................................ 16
List of boxes
Box 1: Energy efficiency policies in the EU ................................................................................................ 6
Box 2: Renewable energy feed-in tariffs ..................................................................................................... 13
Box 3: Business opportunities through green technology....................................................................... 21
Box 4: Public–private partnerships ............................................................................................................. 23
Box 5: Education and Outreach .................................................................................................................. 25
viii
GREEN POLICIES IN
THE EU: A REVIEW
Main Findings
•
Environmental taxes and charges are the most widely used market-based instruments
for green policies in the EU with governments imposing taxes on transport, emissions
and air pollution, energy and mineral oil.
•
Subsidies and tax credits have been granted to enhance energy efficiency in a variety
of areas, including buildings, transport and households. Renewable feed-in tariffs
(FITs) were also introduced in the renewable energy sector. These taxes and credits
have raised supplies of clean energy and reduced emission of greenhouse gases
(GHGs).
•
The EU Emissions Trading System (EU ETS) is the first and largest international
scheme that aims to combat climate change and cost-effectively reduce industrial
GHG emissions.
•
In order to promote environmentally friendly energy generation and decrease
emissions, the governments of the EU Member States launched various climate
change programs and funds. Renewable sectors are expanded by investing more in
low-carbon energy production such as wind, solar, geothermal, hydro and nuclear
power. Major EU Member Statesannounced Public-Private Research Partnerships
(PPRP) to fund a wide range of renewable energy investments.
A.
•
Governments of EU Member States are promoting energy efficiency and the use of
renewable energy in the renovation and construction of buildings. Governments have
also conducted surveys and feasibility studies while launching educational programs.
•
The only evidence of green labour market policies is from countries that used tax
revenue to finance reductions in distortionary labour taxes. Other quantitative or
qualitative green labour market policies are not yet widespread in EUMember States.
Green Policy Instruments for the Environment
Green policies are all measures and instruments implemented by the government or other
governmental institutions that have the purpose and the potential to reduce CO2
emissions. Reducing CO2 emissions cannot be limited to a few industries like the energy
sector for example. A broad-based approach to encourage behavioural adjustments
throughout the entire economy is needed since the consumption of fossil based energy
resources can be decreased in many parts of the economy. The primary goal of policy
instruments is to reduce the damage to the environment at minimum economic cost.
A variety of policies can encourage the structural change toward a low-carbon economy.
INST-EC Discussion Paper No. 12 provides an in-depth discussion of the various tools
available for EU policymakers. These tools include:
i.
ii.
iii.
iv.
v.
Regulations
Tax Instruments
Emission Trading Systems (Certificates and Licenses)
Research and Development
Public Investment
While all of the instruments are relevant to the EU context, the first three options—
regulations, tax instruments and trading systems—are identified in the literature as the
main approaches to cope with global climate change (see Uzawa (2003) and Bertram
(1992)). Indeed, the EU has relied heavily on tax instruments and trading schemes in
addressing climate change, especially because these tools effectively assign a price to
carbon — a favoured approach among economists. Some countries have engaged in more
comprehensive tax approaches under Environmental Tax Reforms (ETR) in the 1990s. A
detailed discussion of ETR in Europe can be found in the INST-EC Discussion Paper
No. 13.
2
Green policies in the EU: A review
In order to promote energy saving and reduce CO2 emissions, the governments of EU
Member States have used various measures, such as taxes, subsidies, fees, laws and R&D
investment programs. A detailed listing of green policies enacted in EU Member States is
provided in the tables in Appendix 1. While many of these policies may not have originally
aimed to address global climate change, they are still relevant in the context of this paper.
Essentially, the observed policy instruments act to internalize the costs of environmental
externalities through a variety of means that will be elaborated below. The majority of EU
policies have focused, in some way, on the combustion of fossil fuels, which is the main
source of CO2 emissions.
It is clear that certain countries in the EU have taken a more active role in implementing
green policies. From the data in the green instrument tables in Appendix 11, the following
countries stand out: Belgium, Czech Republic, France, Italy, the Netherlands, Spain,
Sweden and the UK. These countries have each implemented over 30 green policies. Italy,
the Netherlands and the UK were all around 50 policies, topping the list of countries
included in this paper.
Section 2 discusses regulations on restriction of emissions by emphasizing emissions
standards and recently introduced legislation on a CO2 labeling scheme for cars. Section 3
presents tax instruments, including an analysis of the various types of tax deductions,
other special provisions and subsidies employed across the EU. Section 4 discusses the
EU ETS. Section 5 details various R&D policies, including public-private partnerships.
Section 6 discusses public investment, particularly in creating incentives for innovation
and infrastructure development. Finally, Section 7 briefly discusses the limited amount of
green labour market policies in the EU.
In Table 1, the major policy instruments adopted by the EU member states are illustrated.
Taxes/duty, fees and subsidies are classified by types and purpose. Detailed analysis of
each tools are followed in the further subsections of the paper.
1
Data in the tables is derived from the IEA’s Policies and Measures Databases and the
OECD/EEA Database on instruments used for environmental policy and natural resources
management).
3
Table 1: Major policy instruments in the EU
TAX/DUTY
Energy production, consumption
(e.g. the Netherlands and the
United Kingdom)
Mineral oil production, sales,
consumption (e.g. Denmark,
Greece and Luxembourg)
Transportation
- Vehicle registration/
usage/purchase (e.g. France )
-Import duty (e.g. Romania)
-Weight based (e.g. Germany)
-Emissions based (e.g. Ireland
and Spain)
-Sticker tax on use of new/old
cars (e.g. Finland)
-Vehicle insurance (e.g. Austria
and the United Kingdom)
-Air transport (e.g Bulgaria)
CO2 emissions, air pollution
(e.g. Estonia , Denmark and
Poland)
B.
FEE/CHARGE
Road tax for use of highways,
alpine roads, and on heavy
goods vehicle (e.g. Czech
Republic and Slovak Republic)
User fee on parking (e.g . Austria
and Finland)
Fee on CO2 emissions (e.g.
Denmark and Estonia)
Air pollution fee on small/
medium/major stationary
sources (e.g. Poland and
Slovenia)
Environmental sanction fee for
violations of the environmental
code (e.g. Sweden)
SUBSIDY
Energy efficiency, clean energy
including biofuels, biomass
(e.g. Lithuania and Spain)
Feed-in tariffs (e.g. Germany,
Italy and Luxembourg)
Transportation
-Clean vehicles (e.g. Cyprus
and Sweden)
-Purchase of eco-friendly
vehicles such as bicycles ( e.g.
Begium and Italy)
-Energy labelling scheme (e.g.
Finland and the Netherlands)
-Scrapping payment(e.g.
Austria and France)
Environmentally friendly
equipment (e.g. Hungary and
Italy)
Ecological buildings (e.g. Czech
Republic, Germany, the United
Kingdom)
Regulations
Currently, the use of emission-restricting regulations is not widely prevalent across EU
Member States, which have opted for more market-based approaches to the climatechange problem. Nevertheless, regulations have been used, in particular, to address
emissions from vehicles and transport. For instance, emissions standards have existed
since the 1970s and currently target four groups of emissions: nitrogen oxides,
hydrocarbons, carbon monoxide and particulate matter. 2 While emissions standards are a
common feature of environmental policies in many advanced economies, the EU has only
recently begun to address the issue of CO2 emissions from vehicles. Recent legislation has
set the timeline for the implementation of new standards in this area.
Legislation was adopted in 2009 and set emission performance standards for new
passenger cars, aiming to cap average emissions from these vehicles at 120 gCO2/km.
Furthermore, the standards seek to reduce the fleet average for all cars in the EU by 19
Recent emissions standards for vehicles include Euro 4 (2009), Euro 5(2010) and Euro 6 (2014).
None of these standards has addressed CO2 emissions. These standards are set at the EU level and
compliance is left to member countries.
2
4
Green policies in the EU: A review
per cent by 2012 with a limit-value curve that will allow heavier cars to emit more than
lighter cars, while maintaining the fleet average. Standards will be gradually phased in to
allow for a smoother adjustment, starting in 2012 with 65 per cent of each manufacturer’s
newly registered cars in compliance with the standard, 75 per cent in 2013, 80 per cent in
2014 and 100 per cent after 2015. Manufacturers will be required to pay a premium if they
fail to meet the standard requirements.
In December 2010, the EU also made progress on forming regulations for CO2 emissions
from vans, as a consensus was finally reached on the regulation text. Regulations on vans
seek to cut CO2 emissions by 14 per cent (to 175 gCO2/km) by 2017. The regulations are
modeled after those for new passenger vehicles and will be phased in with a cut in
emissions of 28 per cent intended by 2020 (to 147 gCO2/km). Again, a limit-value curve is
employed to set emissions limits by mass of vehicles and aiming to create a fleet average
of 175 gCO2/km. Premium payments will also be required of manufacturers that do not
comply with emissions restrictions. Additional incentives to manufacturers are also
included. For instance, super credits, which allow manufacturers to count extremely lowemitting vans (below 50g/km) as more than one vehicle, will be offered on a phased-out
schedule. And, manufacturers will be able to pool together to meet emissions targets
collaboratively.
Recently passed legislation introduced a CO2 labeling scheme for cars in an effort to better
inform consumer choices. Labels will provide information on fuel efficiency and CO2
emissions at the point of sale. Finally, legislation has also required a reduction in the GHG
intensity of fuels by 10 per cent by 2020, with phasing-in of requirements. Again, fuel
suppliers also have the option to pool together to meet standards.
C.
Tax Instruments
Environmental taxes and charges are the most widely applied market-based instruments
EU governments have imposed taxes on transport, emissions and air pollution, energy and
mineral oil. Subsidies and tax credits have been granted to enhance energy efficiency in a
variety of areas, including buildings, transport and households. Renewable feed-in tariffs
(FITs) were also introduced in the renewable energy sector. Implementation of FITs is
discussed in detail in the section on tax deductions and other special provisions. These
taxes and credits have raised supplies of clean energy.
5
Box 1: Energy efficiency policies in the EU
The EU has adopted the “20-20-20” plan, which sets climate and energy targets of
cutting GHGs by 20 per cent by 2020 compared with 1990 levels, achieving 20 per
cent of primary energy from renewable resources and improving energy efficiency by
20 per cent by 2020. As part of the strategy, many governments in the EU have
imposed taxes on usage of electricity, mineral oils, roads and vehicles, which vary
based on weight, purpose and emissions (see table 3). European countries have also
designed a wide range of taxes including a tax on plastic bags in Ireland, the nutrient
surplus charge in the Netherlands and waste disposal and batteries taxes in Denmark
(see EEA (2005)). The plan also includes conducting surveys and feasibility studies
while launching educational programs to provide information concerning renewable
energy, energy efficiency and pollution.
1.
Energy and Mineral Oil Taxes
Taxing energy and mineral oil as a means to raise tax revenue has a long tradition in EU
Member States. Several EU Member States had already introduced energy taxes on the
consumption of natural gas, coal, electricity and other oils since the 1950s. In the 1990’s,
several EU Member States started introducing fuel taxes that included both, energy and
mineral oil taxes, for environmental purposes. Later on, countries also started imposing
specialized taxes on the energy and the oil sector.
The fuel excise tax imposed by Bulgaria in 1991 and revised later in 2006 includes both
mineral oil and energy. Fuel is differentiated in three ways: by type, including petrol, diesel,
gas oil, kerosene, LPG, heavy fuel oil, natural gas coal and coke, by electricity and by its
use, such as whether it is used for heating or a propellant or for industrial or commercial
purposes.
Denmark introduced duties on energy based on their purpose of usage since early 1980s,
while duties on coal, electricity, and natural gas were imposed in 1995. The rest of the EU
Member Statesstarted implementing taxes on energy products from early 1990s; Poland in
1990 and Austria in 1996. The Netherlands introduced separate taxes on energy, including
a coal tax in 1992, and an energy tax and mineral tax in 1996. Italy has excised duties on
consumption of all sources of energy since 1993. And, Romania and Slovenia imposed a
fuel excise tax in late 1990s. Slovenia also introduced energy efficiency tax in 2010.
Italy has imposed an additional tax on electricity in towns and provinces since 1988. The
electricity tax for manufacturing and transportation mode was levied in Germany as a
result of their green tax reform in April 1999. Spain has levied electricity tax on
production, distribution and importation since 1998.
6
Green policies in the EU: A review
Non-fossil fuel obligation and climate change taxes were imposed on consumption of
natural gas, coal and electricity in the UK since 2001. A number of countries like Sweden
revised their energy taxes including, the electricity tax and energy and CO2 tax on fuels in
2010 that were introduced in the early 1990s. Some of the EU Member States like Czech
Republic and Slovak Republic levied electricity, natural gas and solid fuels taxes in late
2000s.
Since the 1950s, some EU Member States have imposed taxes on petrol. For example,
Denmark imposed a duty on petrol in 1950 and on mineral oil products in 1977. The rest
of the EU started implementing different taxes on oil and petrol from the early 1990s. The
Netherlands levied a separate petrol tax and a mineral oil tax in 1990 and in 1996. Italy
imposed a special regional tax on oil and petrol in 1990 and also excised duty on petrol
from 1993. While the original purpose of mineral oil taxes was to raise revenues, they can
today be regarded as climate change policies and indeed several EU Member Statesraised
mineral oil taxes in the course of their environmental tax reforms. Germany, for instance,
raised the taxation on mineral oils in 1999. In Spain, a tax on mineral oils was extended to
include retail sales of unleaded petrol, diesel, kerosene and others.
Many countries made revisions to their mineral oil taxes in 2010. Sweden revised its CO2
tax on petrol and diesel, which was first introduced in 1991. Duties on hydrocarbon oils
like petrol, diesel and biodiesel were also changed in the UK.
Several countries introduced new energy and mineral oil taxes in the course of
environmental tax reforms (ETR’s), thereby attempting to apply a more comprehensive
tax policy approach. New green taxes are adopted while restructuring existing taxes and
charges. Targeting renewable energy and energy-efficiency has been a main policy goal of
ETR’s of EU Member States. Some of the methods in the greening of taxation are as
follows:
•
Tax on fuels and electricity introduced by Finland in 1990 and parking fines
•
Duty on coal was excised in Denmark in 1982, fee on petrol is charged in 1992, duty
on natural gas in 1995 and passenger car petrol in 1997, CO2 tax on fuels in 1998
•
The Netherlands levied a petrol tax in 1990 and on coal in 1992, and started a
comprehensive CO2 reduction plan in 1998 supporting the environmental projects and
research by different tax incentives and subsidies
•
France imposed a tax on natural gas in 1986, the reconstruction of environmental
taxes and charges since 1999 and tax rebate on environmentally friendly house
equipment in 2001
•
Germany’s introduction of electricity tax and an increase of tax on mineral oils in 1999
7
•
Italy levied additional tax on electricity consumption in 1988, special tax on oil in
1990, excised duty on petrol and energy products in 1993,charge on air pollution in
1997, tax for registration of vehicles in 1999
•
Sweden introduced a number of subsidies in the environmental and energy research
such as investment subsidy for renewable energy in 1991, support for climate
investment in 2003. Additionally, excised energy, CO2 taxes on petrol and electricity.
•
An increase of fuel duty and climate change levy in the UK.
To reduce fossil fuel consumption, the German government has undertaken a three stage
eco-tax reform on gasoline and heating fuel since 1999. In the beginning, the tax was
raised by DM 0.06 per litre on gasoline, DM 0.04 per litre on heating fuel, DM 0.032 per
kWh on natural gas, and DM 0.02 per kWh on electricity. Between 2000 and 2003, the
yearly tax was increased by DM 0.06 per litre on gasoline and DM 0.005 per kWh on
electricity. But after 2003, the eco-tax still remained at its 2003 level. At the same time,
exemptions were granted to alleviate the tax burden. The manufacturing industry, for
example, paid 20 per cent of the tax on electricity, heating oil and gas. And, oil and gas for
power generation were not taxed.
The recent energy tax reform in Denmark created a green tax system that promotes
renewable energy and targets reduction of CO2 emissions and gross energy consumption.
In March 2009, the Danish Parliament agreed to launch the energy tax reform by cutting
taxes on work and raising taxes on energy, climate and transportation by about EUR 1.1
billion.
2.
Transport Taxes
EU Member States have imposed different types of vehicle-related taxes based on weight,
purpose and emissions. Finland was one of the first countries to introduce a vehiclerelated tax, with a tax on passenger cars and vans in 1958 (updated in 2009), and also a tax
on registered cars in 1967 (updated in 2004). Most of the European countries, like Austria,
Hungary, Latvia and the Netherlands, started levying vehicle-related taxes starting in the
early 1990s.
In countries like Spain, until late 2007, the passenger car registration tax was linked to the
cylinder capacity of the vehicle but from 2008, the registration tax was imposed according
to car CO2 emissions/fuel consumption.
Since the early 1990s, many countries, like Ireland, introduced CO2 emission based vehicle
taxes. Recently, France introduced CO2 emissions reduction measures, including a tax on
company cars and a bonus/tax for registration of motor vehicles with low/high emission
in 2008). In 2010, France imposed an annual tax on motor vehicles with large CO2
emissions (more than 245 g/km). Denmark has collected fees from heavy goods vehicles
since the late 1990s.
8
Green policies in the EU: A review
Table 2: Fiscal policy instruments for sustainable transport
Fuel tax
-
Gasoline/diesel tax (e.g. Poland)
Carbon tax (e.g. Sweden)
Vehicle tax
-
-
Annual vehicle attribute taxes and fees (EU)
Tax and fee reductions or exemptions for new clean, fuel
efficient cars (e.g. Denmark, Germany, the Netherlands)
Scrapping subsidies (e.g. Italy)
Annual fees for CO2 and smog externalities (e.g. Denmark,
the UK)
Import duty (e.g. Romania, Bulgaria and Lithuania)
Fee/tax on air plane
-
Emission landing charges (e.g. Sweden)
Tax on air transport (e.g. Austria, Bulgaria)
Road fees/tax
-
Congestion pricing (e.g. the UK)
Highway/Electronic road, road toll (e.g. Austria, Germany,
Czech Republic)
Road tax (e.g. Bulgaria, Slovak Republic)
User fee
-
Parking fees (e.g. Austria, Finland)
In-lieu fees for parking (e.g. Germany)
New vehicle incentives
-
“feebate”: variable purchase tax with fuel consumption (e.g.
Austria)
Vehicle insurance
-
Fines for lack of mandatory insurance (e.g. the UK, Denmark)
Insurance-specific auto tax (e.g. France, Austria)
Pay-as-you drive and pay-as-you pump insurance (e.g. the
UK)
Fleet vehicle incentives
-
Incentives for clean, fuel-efficient company cars (e.g. the UK)
-
Source: UNEP, OECD, IEA
In recent years, Germany implemented a weight and emission-based tax and charged a fee
on heavy goods vehicle road toll since 2005. In the Netherlands, subsidies for lowemission vehicles are linked to vehicle labelling. In Romania, fees are levied on foreign
registered vehicles that exceed standard dimensions. Portugal has implemented a
municipal tax, truck tax and also a circulation tax on vehicles that transport goods,
passenger cars and motor cycles.
Other kinds of vehicle-related taxes have included a sticker tax on the use of new and old
cars and a diesel tax both introduced in Finland in 2004. Import duties on vehicles were
also imposed in Romania, Bulgaria and Lithuania in the early 1990s. Additionally, air
transport is taxed in countries like Austria and Bulgaria.
As for road transport, Austria has collected taxes on the use of lorries and trailers on roads
since 1981. Austria and the Czech Republic also introduced fees for the use of highways in
the second half of the 1990s. Czech Republic has charged additional road taxes on
passenger cars since 1993 and electronic road toll fees since 2007.
9
3.
Taxes on Emissions and Air Pollution
In a number of EU Member States, CO2 emissions-related instruments have included air
pollution fees and air emissions charges. The first CO2 tax was imposed in Finland in
1990, followed by countries like Denmark, Finland, Germany, the Netherlands, Poland,
Slovenia, Sweden and the UK. Since 2000, Estonia started charge a fee on CO2 emissions.
The Czech Republic was one of the first countries to charge air pollution fees. The
pollution fees on major sources were introduced in 1967, and were extended to medium
and small stationary sources in 1991. The Slovak Republic introduced similar pollution
fees on small sources in 1967 and on medium and large stationary sources in 1992.
Poland and Lithuania have been charging several air pollution fees since 1990. Italy started
charging tax on air pollution since 1997 and Latvia since 1995. Air pollution noncompliance fees have been charged in Bulgaria since 1993, but in Romania and Latvia
from 2000 and 2001 respectively. The Netherlands started providing subsidies for CO2
reduction since 1998, cutting the transport CO2 emissions, carbon credits and subsidy
projects on CO2 re-use through underground storage in 2002. In Hungary, an air load tax
and air pollution tax were levied in 2001 and 2004.
Spain introduced various taxes on air pollution starting with the tax on emissions to air in
1996. After providing tax deduction for environmental instruments since 1997, Spain
introduced separate emissions and pollutants taxes including, a tax on activities that cause
environmental harm in 2001; separate taxes on air pollution and on environmental
damages caused by CO2 and SO2 emissions were introduced in 2006.
10
Green policies in the EU: A review
Table 3: Common taxes in the EU
Fuel Tax/Fuel Excise Tax
e. g. Bulgaria, the Netherlands, Romania, Slovenia, Cyprus, Lithuania, Estonia, Finland, Latvia
Energy Tax
Mineral oil tax
e. g. the Netherlands, Italy, Sweden, the UK, Austria, Slovenia
Electricity
Coal
Natural Gas
Heating
e. g.
Germany,
Denmark, Spain,
Italy, Sweden,
Czech Republic,
Slovak Republic,
Luxembourg,
Malta, the UK,
Finland
e. g.
Denmark,
the Netherlands,
Denmark, Slovak
Republic, Czech
Republic
e. g.
e.g.
Denmark,
Luxembourg
France,
Czech Republic,
Italy,
Slovak Republic
e. g. Denmark, the Netherlands,
France, Germany, Italy, the UK,
Spain, Austria, Greece, Ireland,
Luxembourg, Slovak Republic
Petrol
Diesel
e. g.
e. g.
Denmark,
the UK, Sweden,
the Netherlands, Ireland, Finland
Italy, Sweden,
the UK
Source: OECD, IEA
4.
Tax Deductions and Other Special Provisions
Special tax provisions are widely used in EU Member States, particularly to increase the
energy efficiency in environmentally friendly house equipment, buildings, vehicles and
heating systems. Among the tools utilized are subsidies, grants, tax credits, tax deductions
and exemptions.
Some EU Member States, like the Netherlands, launched tax incentive instruments to
promote environmental initiatives. The Dutch government set up the Green Funds
Scheme in 1995 to provide environmental tax credits to investors and loans to
environmental projects through "green banks". Spain revised its 1997 tax deduction for
environmental investments, such as renewable energy, air and water quality in 2006.
Tax credits encourage the production and sale of renewables because they reduce
production costs, relative to the costs of producing substitutes like petrol and diesel fuel.
Thus, Italy introduced tax credits for biomass heating systems in 2001, subsidies for the
support of eco-friendly activities in 2004 and subsidies for energy efficiency in 2007.
Lithuania has used tax exemptions for bio-fuels since 2000. In the UK, the first and
second rounds of Bio-Energy Infrastructure Scheme were launched in 2003 and 2008 to
provide grants to stimulate the use of small-scale biomass supplier fuel for heating and
electricity generation. In Poland, rationalization of heat consumption in the household
sector was introduced in 1998. France’s 2009 Finance Law was targeted to support
11
renewable energy and increase financing for energy efficiency investments. The law
provides consumption tax reduction on a variety of bio-fuels, ranging from EUR 15 to
EUR 21 in 2009, EUR 11 to EUR 18 in 2011, and EUR 8 to EUR 14 in 2012.
Allowances for environmentally friendly vehicles and grants for the promotion of
alternative energy sources have been provided in Cyprus since 2000 and 2003. In 2005,
France revised the 2001 tax rebate on environmentally friendly house equipments.
Recently, Hungary granted subsidies under the light bulb change programme. In its
support for public transportation, Italy provided a personal income tax allowance in 2008
and subsidy for purchase of eco-friendly vehicles such as bicycles in 2009.
Table 4: Energy efficiency measures
Clean
Vehicles
e.g. France,
Italy, Cyprus,
Denmark,
Sweden,
Germany,
the UK, Sweden,
the Netherlands,
Spain, Hungary
Equipments
Buildings
Feed-in tariffs
e.g. France,
Italy, Germany,
Hungary, the
Netherlands,
Spain, Belgium,
Denmark
e.g. France,
Denmark,
Germany,
Finland, the
Netherlands,
Spain, Belgium,
Denmark,
Ireland,
Lithuania, Czech
Republic,
Hungary,
Portugal
e.g. France,
the UK,
Germany,
Bulgaria
Italy, Spain,
Hungary,
Luxembourg
Renewables/
Clean energy
subsidy
e.g. France,
Slovenia, Spain
- Biofuels
e.g. Lithuania,
France, Italy,
Spain
- Biomass
e.g. Poland, Italy,
the UK,
Sweden, the
Netherlands
Source: OECD, IEA
In recent years, governments of EU Member States, particularly France and Germany,
have started promoting energy efficiency and the use of renewable energy in the
renovation and construction of buildings by taking initiatives such as setting a new norm
for the public and private buildings and providing zero-interest loans. For example,
through the environmental policy called the Grenelle de l’Environnement, the French
government aims to cut the energy consumption of existing buildings by at least 38 per
cent by 2020. Additionally, in 2012 the government is planning to reduce the existing
public buildings’ energy consumption by 40 per cent and GHG emissions by 50 per cent.
The norm for new offices and public buildings will be 50 kWh/m/year starting in 2010.
The government established agreements with the banking and construction sectors to
provide zero-interest loans to owners to improve the energy efficiency of their buildings
(see Barbier (2009)).
12
Green policies in the EU: A review
Box 2: Renewable energy feed-in tariffs
FITs promote market development of renewable energy technologies, such as solarwind or geothermal-generated electricity. FITs offer producers of renewable energy
long-term purchase contracts on favourable prices, usually at least the cost of
production. Investments in renewable energy provide then a stable and calculable
return. Producers of energy can be companies but also house owners who install solar
panels on their roofs and can sell excess energy at a guaranteed price. In the long run,
advanced technology and economies of scale are expected to decrease production cost
so that renewable energy sources become competitive with their fossil-fuel-based
counterparts. FITs are one of the most effective policy instruments in terms of
overcoming cost barriers.
Through effective implementation of FIT law, several European countries like
Germany (solar energy) and Denmark (wind energy) have successfully developed a
renewable energy industry. Benefits of FIT include reduction of CO2 emissions,
secured domestic energy supply, promotion of technological innovation, fair market
conditions for renewable technologies and creation of jobs.
The first Feed-In Law in Germany in 1990 supported producers of electricity from
small hydro stations and wind energy installations. Since that time, the adoption of the
Energy Supply Industry Act in 1998 and the Erneuerbare-Energien-Gesetz (EEG)
(further amended in 2004), or the 2000 Renewable Energy Sources Act, indicated a
commitment to raising the share of renewable energy in total electricity supply in
Germany to 12.5 per cent by 2010, and to at least 20 per cent by 2020.
Other EU countries like France, the UK, Italy, Spain and Bulgaria have introduced
FITs for different types of renewable energy since the beginning of 2000. The French
government offered a series of new FITs in the biogas and mechanisation, wind
power, photovoltaic, hydro, solar and geothermal sectors since 2001. The FITs for
most technologies in France were superseded by subsequent regulations and further
new tariffs were introduced in the area of hydropower (2007), biomass (2009) and
solar PV (2010).
In April 2010, the UK government provided FITs for small-scale low-carbon
electricity produced from a wide range of renewable energy technologies including
bio-energy, hydropower, solar photovoltaic and wind. Italy stimulated the production
of electricity from solar thermodynamic plants, connected to the electricity grid and
plants had to be equipped with thermal accumulation systems relative to the intensities
of industries within the economy.
13
Trends in Taxation
As discussed in the tax instruments section, most of the taxes are imposed on energy.
Figure 1 shows environmental tax revenue independently for EU Member States, and as a
percentage of total tax revenue, for 2008 and 2009. The data shows that on average,
environmental taxes account for 7.1 per cent of total taxes, with revenue ranging from
EUR 1 to 40 million and 4.4 to 11.9 per cent of total tax revenue. This indicates that wide
variation of tax policies and revenues exist among EU Member States. For example, in
Denmark and the Netherlands, green taxes account for over 10 per cent of total tax
revenue, in comparison to Belgium and France, where environmental taxes are less than 5
per cent of total tax revenue.
Moreover, Figure 1 also reveals little growth, if any, in environmental tax revenue. There is
only a 0.34 average per cent growth in environmental tax revenue between 2008 and 2009,
with most EU Member States actually experiencing a decline in revenue. Such a decline in
revenue amongst the majority of Member States can ultimately denote, however, that
environmental taxes serve a more significant purpose than a tax instrument; environmental
taxes are changing the consumption habits of communities by creating a price differential
between environmentally-friendly and environmentally hazardous products. Decreased tax
revenues reveal that green taxes are acting as an efficient disincentive in reducing the
consumption and use of environmentally dangerous goods and limited natural resources. 3
Exclusions exist for Latvia, Lithuania and Slovenia, which all witnessed markedly high
increases in environmental tax revenue.
Several countries have already raised environmental taxes substantially. These taxes can
become an essential part of governments' budgets but the trends are declining. As
examined in the INST-EC Discussion Paper No. 13, on average, environmental tax
revenue in the EU has amounted to 2.5 per cent to 3 per cent of GDP, with a declining
trend. Environmental taxes account for between 7 and to 8.25 per cent of total tax
revenue on average, also with a declining trend. Table 5 shows the environmental tax-toGDP ratio by Member State and the composition of environmental tax revenue, through
taxes on energy, transport-fuel and pollution. Energy taxes are taxations on both transport
and stationary use of energy products, such as electricity, natural gas and coal. 4 The high
share of taxes from transport fuels is almost exclusively from minimum excise taxes on
petroleum. Lower taxes often exist for transport and use of fuels for heating and
businesses, with Member States motivated by social rather than environmental concerns. 5
Last, pollution taxes are taxations on hydrocarbons and other pollutants as an instrument
in the EU’s reduction of CO2 emissions.
“Taxation Trends in the European Union: Data for the EU Member States, Iceland and Norway.”
Part II, Environment. Eurostat, European Commission. 2010. (154).
4 “Taxation Trends in the European Union.” (152).
5 “Taxation Trends in the European Union.” (154).
3
14
Green policies in the EU: A review
As seen in the table, energy taxes are by far the most significant form of environmental
taxes, representing around three quarters of environmental tax receipts. Following taxes
on energy usage, transport taxes comprise on average, slightly less than one quarter of
environmental tax revenue. 6 Moreover, despite minor exceptions, the green tax revenue
for most Member States falls within 2 to 3 per cent of GDP. Only 4 countries – Denmark,
Malta, the Netherlands and Slovenia – have environmental tax revenues that exceed 3.5
per cent of GDP. In the case of Denmark, increases in transport and pollution taxes,
remarkably higher than other EU Member States, account for the elevated tax-to- GDP
ratio.
Figure 1: Environmental tax revenues by EU Member States and type of
tax, 2009, % of GDP
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
BE BG CZ DK DE EE IE EL ES FR IT CY LV LT LU HU MT NL AT PL PT RO SI SK FI SE UK
Environmental Tax-Energy as % of GDP
Source: Eurostat
6
Environmental Tax-Transport as % of GDP
Environmental Tax-Pollution as % of GDP
“Taxation Trends in the European Union.” (150).
15
Table 5: Environmental tax revenue in the EU Member States, 2008-2009
2008
BE
Environmental
tax revenue (in
EUR millions)
6.790,6
Environmental
tax as % of total
tax revenue
4.4
Environmental tax
revenue (in EUR
millions)
6.874,1
Environmental
tax revenue as
% of total tax
4.66
BG
1.218,89
CZ
3.627,66
10.6
1.060,5
10.48
6.8
3.418,01
7.23
DK
13.329,06
11.9
10.662,62
9.97
DE
54.538
5.7
54.164
5.69
EE
379,25
7.3
413
8.31
IE
4.506,83
8.3
3.781,2
8.39
EL
4.561
6.0
4.611
6.52
ES
17.840
4.9
17.163
5.35
FR
40.061
4.9
39.927
5.04
IT
38.130,84
5.7
39.864,54
6.08
CY
542,3
8.0
490,1
8.23
LV
451,17
6.7
429,33
8.69
LT
533,95
5.5
543,22
6.98
LU
986,15
7.0
931,4
6.61
HU
2.853,33
6.7
2.436,09
6.64
MT
200,51
10.2
194,89
9.77
NL
23.140
9.9
22.764
10.42
AT
6.795,09
5.6
6.658,16
5.69
PL
9.486,9
7.5
7.944,34
8.05
PT
4.406,32
7.2
4.202,98
8.07
RO
2.486,23
6.3
2.213,99
6.99
SI
1.119,53
8.1
1.260,83
9.47
SK
1.317,32
6.8
1.225,48
6.76
FI
4.992
6.3
4.553
6.17
SE
8.934,3
5.8
8.212,71
6.02
UK
43.768,75
6.5
40.603,37
7.44
24.189
7.1
79.455
7.397
EU
Average
Source: Eurostat
16
2009
Green policies in the EU: A review
5.
Subsidies
Subsidies have been a popular tool in the EU. Countries like Slovak Republic have
provided subsidies for environmental purpose since 1991. In Italy, the motor vehicle
scrapping subsidy was introduced in 2007. In the Netherlands, subsidies were provided for
the generation of electricity, which included biomass installation and offshore wind
generation.
In particular, the use of low-emission vehicles is supported through subsidies. The Power
Shift Programme, launched in the UK in 1996, offers grants to buyers of clean-fuelled
vehicles, including vehicles running on natural gas, liquefied petroleum gas and electricity
(see EEA (2005)). Also, grants are offered to British operators of commercial vehicles and
public operators. The French government has promoted clean-fuel alternatives to other
petroleum products in both private and public transport vehicles by subsidizing and
reducing taxes on electric and natural gas powered vehicles since 1999. In this sense, a
bonus was provided for the acquisition of clean vehicles in 2007.
D.
The European Union Emission Trading System
(EU ETS)
As defined by the European Commission (EC), the EU ETS is the first and largest
international scheme that aims to combat climate change and reduce industrial GHG
emissions cost-effectively. By allowing participating companies to trade emission
allowances, the EU ETS assists EU Member States in fulfilling their commitments to
reduce GHG emissions at least cost. From 2005 to 2009, the global carbon market grew to
a total value of USD 144 billion, of which the EU ETS accounts for USD 123 billion (see
Robins et al. (2009)).
The EU ETS was launched in 2005, with a first trading phase from 2005 to 2007 and a
second phase from 2008 to 2012. It covers over 10,000 installations in the energy and
industrial sectors that generate almost half of the EU's total CO2 emissions and 40 per
cent of its total GHG emissions. On 1 January 2008, the EU-27 Member States under the
ETS were joined by Norway, Iceland and Liechtenstein. According to a July 2008
amendment to the EU ETS Directive, the aviation sector will be added to the system
starting in 2012.
The EU ETS allows participants to buy and sell allowances within the trading limit
determined by the ETS. The holder of an allowance has the right to emit one tonne of
CO2 or equivalent amount of another GHG. The ETS covers the CO2 emissions in the
power sector, including all fossil fuel generators over 20 MW, iron and steel
manufacturing, oil refining, cement, glass, ceramics and paper and pulp production. After
2005, member states were permitted to “opt in” smaller installations within these sectors,
17
and under the second phase from 2008-2012, new sectors were added and include nonCO2 GHG emissions. From 2005 to 2007, member states could apply to "opt-out"
specified installations, but after 2008 all eligible installations were required to be covered
under ETS.
In the first and second trading periods under the scheme, Member States had to draw up
National Allocation Plans (NAPs), which determine the total quantity of GHG emission
allowances that the companies in EU Member States are granted. Each Member State had
to decide the total quantity of allowances for the trading period and allocate the
allowances among the installations covered by ETS. For the third trading period starting in
2013, the allocation will be set directly at the EU level, suspending the use of national
allocation plans.
1.
The first trading period of the National Allocation Plans
(2005-2007)
Each Member State prepared and published their first NAPs by 31 March 2004 and 1 May
2004 (for 10 Member States that joined the EU in 2004). The allocations granted to
installations were required to be within the framework of the Kyoto Protocol. The
following plans were accepted by the Commission:
•
In 2004, Austria, Denmark, Germany, Ireland, the Netherlands, Slovenia, Sweden, the
UK, Belgium, Estonia, Finland, France, Latvia, Luxembourg, Portugal, and the Slovak
Republic, Cyprus, Hungary, Lithuania, Malta and Spain
•
In 2005, Poland, the Czech Republic, Italy and Greece
The NAPs for the first trading period successfully established the free trading of emission
allowances within the EU by developing the core infrastructure of a dynamic carbon
market. Due to the adoption of emission projections, however, excessive allocation of
allowances occurred in some Member States and sectors.
2.
The second trading period of the National Allocation Plans
(2008-2012)
While NAPs of the first trading period were time-consuming and complex, and not
sufficiently transparent, NAPs in the second period were much simpler. The second
trading period is crucial because it coincides with the first commitment period of the
Kyoto Protocol. The NAPs were prepared and published by 30 June 2006 and during this
period, the EU Member States have to achieve their targets to limit or reduce GHG
emissions. All second period NAPs are approved by the EC and while member States
individually meet their Kyoto commitments, the second period EU cap is about 13 per
cent lower than the first period cap and 6 per cent lower than comparable 2005 emissions
18
Green policies in the EU: A review
(see Ellerman & Joshkow (2008)). The total cap, quota and allocation of emissions to
energy and industrial facilities vary according to countries.
From 2008-2012, Italy committed to cut CO2 emissions by 13.65 million tonnes with a
total cap of 201.63 million tonnes. The annual emissions quota for new industrial plants is,
on average, 16.93 million tonnes. The share of emissions that can be offset by credits
created in developing nations is 15 per cent of the total amount, except for fuel-fired
power plants (up to 19.3 per cent).
In Denmark’s second NAP, a total of 125 million CO2 emission allowances were allocated.
On 13 March 2003, a new climate change strategy was adopted that identified tools to
achieve Denmark's Kyoto target of 21 per cent GHG emission reductions in the period
2008-2012.
In Greece's NAP, 69.1 million tonnes of CO2 emissions per year were allocated, with the
expected result in a 16.6 per cent reduction in GHG emissions for 152 industrial
enterprises. The whole emission rights are allocated free of charge and totals to 345.6
million tonnes of CO2. About 4.8 per cent of the total emissions rights, or 16.7 million
tonnes of CO2, will be spent on new plants in 2008-2012.
Due to widening differences in national methods for allocating allowances to installations,
it is difficult to ensure fair competition in the internal market. Therefore, the EC has
supported improvements in the harmonization and refinement of these methods and also
encouraged access to credits from emission-reduction projects outside the EU. Moreover,
the conditions for linking the EU ETS to ETS elsewhere should be provided, and the
monitoring, verification and reporting requirements need to be enhanced.7
3.
The third trading period without National Allocation Plans
(from 2013 onwards)
For the third trading period, allowances will be allocated through harmonized rules and
there will be a single EU-wide cap. The main allocation method will be the auctioning of
carbon allowances. The EC summarized the following major changes 8:
•
7
8
Derogation of the rule “no allowances are to be allocated free of charge to electricity
generators” is allowed temporarily (or is optional) to some Member States as of 2013.
The amount of free allowances to power plants is limited to 70 per cent of carbon
dioxide emissions in phase 1 and declines in the following years. Moreover, free
allocation in phase 3 is only provided to power plants.
Refer to the EC’s Climate Action site: http://ec.europa.eu/clima/policies/ets/index_en.htm
Summary of the main changes is stated on the above website of the EC’s Climate Action
19
•
Detailed explanations of criteria are used to determine the sectors or sub-sectors
exposed to a significant risk of carbon leakage. Installations of all exposed industries
for 100 per cent free allowances if international agreement is reached and the most
efficient technology is used.
•
Member States may compensate certain installations for CO2 costs passed on in
electricity prices if the CO2 costs might otherwise expose them to the risk of carbon
leakage.
•
The level of auctioning of allowances for non-exposed industry will be raised in a
linear manner: 70 per cent by 2020 and reaching 100 per cent by 2027.
•
10 per cent of the allowances for auctioning will be redistributed to Member States
with low per capita income from those with high per capita income. Also, 2 per cent
of auctioned allowances are added to support Member States, which in 2005 had
achieved a reduction of at least 20 per cent in GHG emissions compared with the
reference year set by the Kyoto Protocol.
•
The share of auctioning revenues that is used in solving climate change issues within
the EU as well as in developing countries is increased from 20 per cent to 50 per cent.
•
New sectors and new entrants will be able to use credits but the total amount must
not exceed 50 per cent of the reduction between 2008 and 2020.
•
300 million allowances from new entrants reserve will be used to support up to 12
carbon capture and storage demonstration projects and projects on innovative
renewable energy technologies.
•
The opting out of small combustion installations is extended to all small installations,
the emission threshold is raised from 10,000 to 25,000 tonnes of CO2 per year, and
the capacity threshold for combustion installations is raised from 25MW to 35MW.
In order to achieve the GHGs reduction target, the cap on carbon will be tightened by 1.7
per cent a year from 2013, and 60 per cent of allowances will be auctioned compared with
current rate of 3 per cent.
By putting a price on carbon emissions, emissions from installations in the scheme are
falling, which shows how the EU ETS could effectively trade the GHG emissions.
Progressive changes including the auctioning of allowances will be introduced in 2013.
The successful implementation of the EU ETS has encouraged other countries to adopt
compatible cap and trade schemes.
20
Green policies in the EU: A review
E.
Research and Development
An effective strategy to reduce CO2 emissions and promote environmental sustainability
must combine market-based instruments with direct public intervention such as
regulations, public investment and increased promotion of R&D. The R&D activities of
private enterprises, which are promoted by both tax and price incentives, alone are
insufficient –governments have to support adequate R&D activities and make green
investments in order to boost and accelerate the green transition.
Box 3: Business opportunities through green technology
The world’s low-carbon energy and efficiency technologies market is forecasted to
grow from USD 740 billion in 2009 to USD 1.5-2.7 trillion in 2020, most likely
tripling to USD 2.2 trillion or at least doubling in the worst case scenario. During this
period the fastest growing sector will be electric vehicles, expanding more than 20
times to reach USD 473 billion (see HSBC (2010)).
The HSBC expects that the EU will meet its renewable energy targets, but not its
energy efficiency targets (see Robins et al. (2010)). It foresees limited growth in clean
energy in the U.S. and expects current clean energy targets to be exceeded in China.
At present, the EU has the largest share of the low-carbon market (33 per cent),
which includes low-carbon energy production and energy efficiency, followed by the
U.S. (21 per cent) and China (17 per cent). But as indicated in the HSBC conviction
scenario, the share of the EU is expected to fall to 27 per cent because of an
increasing market share of China (24 per cent) (see Robins et al. (2010)).
Several European countries have contributed substantial amounts of funds to research
programs on renewable and environmentally friendly energy generation since 1970s. In
recent years, government expenditure on environmental R&D has risen rapidly, taking the
form of investments, subsidies and tax credits. Denmark has implemented the Energy
Development and Demonstration Program since 1976 and subsidized many new energy
and electricity efficiency related research and development since the end of 1999.
Sweden has invested in energy research, renewable energy and climate change since 1991
and has subsidized activities on introducing renewable energy, as was done with wind
power in 2004. Lithuania started implementing an energy efficiency and housing project
and set up an Environmental Investment Fund in 1996. In the Netherlands, research on
environment and technology has been supported by subsidizing the climate indifferent
energy, reduction of GHG and management of waste since the late 1990s.
21
Governments are providing grants and subsidies in the research and development of
sustainable development, environmental education, renewable energy sources and
protection of air and water though special funds and programs, such as the State
Environmental Fund of the Czech Republic (SEFCR). The Austrian Climate and Energy
Fund, established in 2007 with a budget of EUR 500 million, also promoted R&D on
sustainable energy technologies and technology deployment and diffusion.
Denmark created the Energy Development and Demonstration Program in 1976 and has
also actively subsidized the research and development in the environmentally friendly
electricity generation and efficient use of electricity since the late 1990s. Additionally,
subsidies were granted to the support of ecological buildings and to the development of
new energy technologies in 2007.
France is supporting the clean energy development by providing subsidy for multiple
renewable energy sources under programs such as Renewable Energy Market
Development Program (1999). Additionally, government crediting and loan guarantees are
provided for energy efficiency and renewable energy investment since 2001.
22
Green policies in the EU: A review
Box 4: Public–private partnerships
Although public investment plays an important role in green R&D, private
corporations and consumers are still encouraged to finance the climate economy. In
recent years, major EU countries have announced Public-Private Research
Partnerships (PPRP) to fund a wide range of climate change and renewable energy
investments.
For example, the Renewable Energy and Energy Efficiency Partnership (REEEP) was
established in 2002 and is funded by the governments of Australia, Austria, Canada,
Germany, Ireland, Italy, the Netherlands, New Zealand, Norway, Spain, the UK, the
U.S. and the EC. In addition to governments and governmental organizations, several
non-governmental organizations like the North American Insulation Manufacturers
Association (NAIMA) and business organizations like the National Australia Bank are
involved as donors. This partnership targets clean energy by providing policy and
regulatory initiatives and facilitating financing for energy projects.
France is one of the major countries that rely on partnerships to encourage private
funding in climate change projects. The Renewable Energy and Energy Efficiency
Partnership (REEEP) and National Strategy for Research and Development in the
Field of Energy were established in 2002 and in 2007. Through the Hydropower
Revival Plan of July 2008, the French government intends to increase the capacity and
efficiency of hydropower and by 2020, raise the final energy consumption to 23 per
cent. The plan involves large-scale public investment in hydropower dams as part of le
Grenelle de l'Environnement and will ensure high water quality. The renewable process of
the plan encourages the participation of private sector.
According to the International Energy Agency (IEA), on 25 April 2006, France
established PPRP to support climate change policy and decrease the use of petroleum
products.1 The Agency for Industrial Innovation is providing public funding for three
major programs including a 88 million euro programme to improve energy efficiency
in buildings, a 96 million euro project for a "green chemistry" initiative, and a 62
million euro initiative to create energy-efficient subway cars.
In February 2009, the French government launched the fourth PREDIT programme
which first started in 1990. This program’s priority is energy and environment and the
largest share of the 145 million euro budget is allocated to the reduction of CO2
emissions, improvement of data on pollution and coordination of research into very
energy-efficient, low- or zero-carbon dioxide emitting vehicles.
In 2010, the UK government announced its plan to establish a private and public
funded commercial Green Investment Bank (GIB) that would include a public
investment of up to 1 billion pounds. The GIB’s main role is to facilitate the delivery
of the UK’s emission reduction targets as set by the Climate Change Act 2008. By
helping to overcome barriers that constrain investments, the GIB could lead to a
substantial increase in investments in low-carbon technologies and infrastructure in
the UK (see UK GIBC (2010)).
23
F.
Public Investment
Public investment is one of the tools that can help to facilitate the reduction in GHG
emissions. Governments can either increase total public investment, or – perhaps more
practically, given the strained public budgets in many countries – shift public investments
from “brown” capital to “green” capital.
In order to promote environmentally friendly energy generation and decrease emissions,
the governments of the EU Member States have launched various climate change
programs and funds. Most of the EU Member States have also expanded their renewable
sectors by investing more in the low-carbon energy production such as wind, solar,
geothermal, hydro and nuclear power. In Germany, for example, the operators of
renewable energy plants have been able to sell green electricity on the market since 1996.
German authorities accepted extra costs caused by green tariffs and also started
purchasing green power.
According to IEA, around 80 per cent of the GHG emissions originate in energy
production and consumption. 9 Thus, governments have drawn measures to increase
energy efficiency, reduce GHG emissions and achieve the indicative target. Some of these
plans include Italy's Provisions on GHG Emissions Reduction (1998), Denmark's Climate
Change Strategy (2003), the Netherlands’ Energy Efficiency Action Plan (2007), Austria’s
New Energy 2020 program (2008), the UK’s Low Carbon Transition Plan (2009) and
Finland's Long-term Climate and Energy Strategy (2008). The Austrian Climate and
Energy Fund of 2007 also increased energy efficiency and reduced CO2 emissions in
transport.
In order to reduce energy consumption in the transport sectors, governments took
additional measures in the framework of national programmes and plans by increasing
investment in public transportation and road construction, updating HGV-toll and
reforming vehicle tax on a CO2 basis. These measures were undertaken by the German
government through the Transport Initiative of 2001, Future Investment Programme
(2008) and the National Energy Efficiency Action Plan (2007) and the Integrated Energy
and Climate Change Programme (2007).
The UK is subsidizing the Green Technology Challenge and the England Rural
Development Programme by investing in infrastructure and public transportation since
2002. The Carbon Trust provides an interest-free loans scheme for small or medium-sized
enterprises for acquiring and installing energy efficient technologies.
A major challenge to greater public investment is budget constraints induced by the
economic crisis. The need for fiscal prudence has severely reduced the capacity of
governments to appropriate funds for “green” goals. Yet, public investments play a strong
9
24
See http://www.iea.org/textbase/pm/?mode=re&id=4247&action=detail.
Green policies in the EU: A review
role in influencing the market and encouraging the private sector towards a green
transition, and play a complementary role to larger market-based mechanisms. Besides
public investments, private investments should be promoted through incentives or
standards of three major instruments like regulations, taxes, and cap and trade.
Box 5: Education and Outreach
Governments conducted surveys and feasibility studies while launching educational
programs to provide information concerning renewable energy, energy efficiency and
pollution. Environmental and ecological websites are launched to reduce household
carbon emissions. The French government also set up an information network with
five hundred people operating on energy efficiency "Points Info Energie" in 2000 and
Ecological Consumption Website in 2008, to reduce individual CO2 emissions.
Additionally, in France, surveys, Diagnostics and related studies were done under the
“Disposition Général des Aides à la Décision” since 2000 in order to identify possible
solutions to resource mismanagement..
The klima:aktiv programme in Austria (2004-2012) targets energy efficiency and
increased the use of renewable energy in all sectors of the economy by providing
direct grant, information and advice. In Germany, a joint project, "Partnership for
climate protection, energy efficiency and innovation", is implemented to support
company visits by members of the chambers which will provide energy consulting
services. This project is initiated by the Federal Ministry of Economics and
Technology (BMWi) and the Federal Ministry for the Environment, Nature
Conservation and the Nuclear Safety (BMU) together with the Association of German
Chambers of Industry and Commerce (DIHK).
G.
Green Labour Market Policies
As defined in the INST-EC Discussion Paper No. 10, green labour market policies are
those that intend to increase the level of employment or improve working conditions
within an economy that is transitioning towards a green economy. Labour market policies
play a significant role in addressing challenges specific to the green transition and provide
opportunities to smooth the necessary structural changes. Implementation of the right
policy mix can lead to positive net employment effects from the green transition.
However, specific labour market policies that are targeted at facilitating the green
transition from the labour market side are not widely observed throughout the EU.
In fact, the only evidence of green labour market policies is from countries that used tax
revenue to finance reductions in distortionary labour taxes, largely in search of the double
dividend. Refer to the INST-EC Discussion Paper No. 13 for a detailed discussion of tax
25
revenue recycling and its influence on the labour market. The case of Germany, included
in that report, is pertinent to this section. Germany used revenue from energy and
petroleum taxes to subsidize social security contributions levied on labour, which had the
effect of reducing the effective wage cost.
Several studies detailed in the report indicated that this revenue recycling resulted in
slightly positive employment effects as well as a small reduction in emissions, although
different findings were observed across various studies. In a research project
commissioned by the German Federal Environmental Agency (UBA), Markus & Görlach
(2005) show that ecological tax reform created 250,000 jobs, particularly in labourintensive sectors during 1999-2003. Thus, it is safe to assume that at a minimum, no
cumulative negative effects on employment resulted from German policy.
In other countries, green policies have included a consideration of the labour market. For
example, in July 2009, the British government set out the long-term strategy to cut the
nation's carbon emissions by 2020 - 18 per cent from 2008 levels under the UK Low
Carbon Transition Plan. Besides the emission reduction, the plan also targets energy
supplies and creation of jobs. The plan includes five major sectors: power and heavy
industry; transport; homes and communities, workplaces and jobs; farming, land and
waste. In Denmark, the Parliament agreed to launch the energy tax reform in March 2009,
by cutting taxes on labour and raising taxes on energy, climate and transportation by about
EUR 1.1 billion.
Other quantitative or qualitative green labour market policies have not yet been
implemented in EU Member States. Given the sectoral employment shifts that are to be
expected from a green transition (see INST-EC Discussion Paper No. 16), several green
labour market policies might be necessary in the future.
Relevant questions in this regard include the early identification of future skills and needs
and corresponding adjustment of education systems. Some industries 10 (e.g. renewable
energy sector) are driving the structural change. New technologies are applied in these
industries and workers need to be trained especially in the natural and engineering
sciences. Other skills, in declining industries, may not be needed in the future. Thus, skills
mismatches may occur during the transition and adequate labour market policies need to
be available.
Such mismatches of labour demand and labour supply can also have geographical reasons.
For example, the mining industry is often concentrated in certain regions of a country. A
decline of the coal and oil industry can therefore cause disproportionally high effects in
those regions that result in regional unemployment. Emerging industries which demand
additional labour might be located in different geographical regions. For example, wind
mill parks are often erected in coastal areas or even in the sea, possibly far away from the
In particular enterprises which fall into Category I and Category III of the employment matrix in
INST-EC Discussion Paper No. 10.
10
26
Green policies in the EU: A review
mining industry where labour might be released. A possible regional mismatch of labour
supply and labour demand must be adequately addressed by governments, e.g. by offering
mobility assistance like tax deductions for moving costs.
Other green labour market policies can refer to changing wage shares in high vs. lowcarbon industries as well as other effects on income distribution. The effects of a green
transition on gender issues needs to be determined and appropriate policy responses must
be identified.
27
References
Bertram, G., 1992. Tradeable Emission Permits and the Control of Greenhouse Gases. Journal of
Development Studies, (23), 423-446.
Coase, R.H., 1960. The problem of social cost. Journal of Law and Economics, (3), 1-44.
EC’s Climate Action, Emissions Trading System
http://ec.europa.eu/clima/policies/ets/index_en.htm
EEA, 2005. Market-based instruments for environmental policy in Europe, Copenhagen: European
Environment Agency (EEA).
Ellerman, A.D. & Joshkow, P.L., 2008. The European Union's Emissions Trading System in
perspective, Pew Center on Global Climate Change.
International Energy Agency, IEA, Policies and Measures: Climate change
http://www.iea.org/textbase/pm/?mode=cc
Markus, K. & Görlach, B., 2005. Effects of Germany’s Ecological Tax Reforms on the
Environment, Employment and Technological Innovation, Berlin: Ecologic Institute.
Robins, N., Clover, R. & Singh, C., 2009. A Climate for Recovery: The Colour of Stimulus Goes
Green, London: HSBC Global Research.
Robins, N. et al., 2010. Sizing the climate economy: We forecast the low-carbon energy market will
trible to USD2.2trn by 2020, London: HSBC Global Research.
UK GIBC, 2010. Unlocking investment to deliver Britain's Low Carbon Future, London: United
Kingdom Green Investment Bank Commission.
UNEP, 2009. A Global Green New Deal, Geneva: United Nations Environment Program
(UNEP).
Uzawa, H., 2003. Economic Theory and Global Warming, Cambridge, UK: Cambridge University
Press.
28
Incentives/Subsidies,
Fee/Charge
Fee/Charge
Fee/Charge
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Incentives/Subsidies, Policy
Processes, Regulatory
Instruments
Education and Outreach,
Incentives/Subsidies, Policy
Processes, RD & D, Regulatory
Instruments
Education and Outreach,
Policy Processes, Voluntary
Agreement
Education and Outreach,
Policy Processes
Education and Outreach
Education and Outreach
Education and Outreach,
Financial, Policy Processes,
RD & D
Regulatory Instruments
RD&D
New Housing Subsidisation Scheme
Charge for parking cars in limited parking zones in Vienna
Toll for alpine roads
Vignette for the use of highways
Road transport duty
Energy tax
Mineral oil tax
Motor vehicle tax
Tax on motor vehicle insurance
Vehicle registration tax
Tax on air transport Green Electricity Act
Promotion of Energy Efficient Electronic Products, The Group for
Energy Efficient Appliances (GEEA)
Integrated Planning for Building Refurbishment Guide
Consumer Guide to Energy Efficient Products
Federal Environment Fund
RD & D Budget Allocations - 1996
Renewable Energy Targets
Renewable Energy & Energy Efficiency Partnership (REEEP)
KlimaAktiv: Climate Strategy 2008 - 2012
Incentives/Subsidies
Type of Instrument
Combined Heat and Power (CHP)
Name of Instrument
1996 ended
2000 superseded
2001
2006
2004
2000
2002
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, electricity
Voluntary information activities in the field of energy efficient home electronics, office
equipment and IT-equipment.
In the field of new constructions and to transfer this know-how to comprehensive
(public) building refurbishment.
Online guide to the energy efficiency of myriad products supports the national
KlimaActiv climate strategy
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Multi-sectoral Policy
Aims to support energy efficiency and increased use of renewables in all sectors of the
economy through direct grant support, information, and advice.
2008 Multiple Renewable Energy Sources, electricity
Long/middle/short-distance routes
2008 Purchase or registration of various motor vehicles
2000 Insurance of motorvehicles < 3.5 tons
2002 superseded
2002
2011
1992
Consumption of petrol, diesel, heavy and light fuel oil
Consumption of natural gas, coal and electricity
The use of lorries and trailers on Austrian roads
Use of highways by motorcycles
Use of toll road by vehicles
Parking time spent in limited parking zones
To reduce GHG emissions in the building sector
2007 Use of motor vehicles
1996 01.01.2004
1981 31.12.2003
1993
Object
2002 To oblige grid companies to purchase electricity from CHP plants, provided that they
served public district heating supply.
1997 01.02.2010
2009
2000
Year of
Introduction Last Revision
AUSTRIA
The following tables were created with data from the International Energy Agency’s Policies and Measures Databases and the OECD/EEA
Database on instruments used for environmental policy and natural resources management.
Appendix 1
Green policies in the EU: A review
29
30
RD&D, Multiple Renewable
Energy Sources
Policy Processes
Climate and Energy Fund
Tax
Vehicles, vessels and aircraft tax - motor / transport vehicle tax
Source: OECD/IEA
Tax
Tax
Passenger cars excise tax - motor vehicles tax / excise duty
Tax
Motor vehicles import duty
Road tax
Fee/Charge
Tax
Liquid fuels product charge
Fuel excise tax
Fee/Charge
Fee/Charge
Air pollution non-compliance fees
Fuel road charge
Incentives/Subsidies
Name of Instrument
Feed-in Tariff for Hydro, Biomass or Wind Power
Source: OECD/IEA
Type of Instrument
RD&D
Building of Tomorrow
Strategic Plan to Reduce Transport's CO2 Emissions
2006
Education and Outreach,
Policy Processes,
RD&D
1993
2000
1998
2002
1994
1991
Object
Electricity: Bioenergy; Hydropower; Wind
2006 agricultural and construction vehicles, passenger cars
Total weight of the vehicle
2006 Engine power
2003 All motor vehicles
Electricity - business use, Electricity - households
LPG - heating business and non-business use
Natural gas Coal and coke
Heavy fuel oil - business and non-business use
LPG - industrial/commercial use
Kerosene - industrial/commercial use
Kerosene - heating business and non-business use
Kerosene (used as propellant),
Gas oil - industrial/commercial use
Gas oil - heating business use, heating non-business use
2006 Petrol, diesel, LPG (used as propellant)
2000 Petrol, diesel, boiler fuel, fuel oil, industrial gas oil
2002 Petrol, diesel, liquefied oil gas and other gaseous fuels
2003 Emission of pollutants into air above permitted level
2007 planned
2000
Implemented in Austria, Italy, Czech Republic, Poland, Spain and Belgium and to address
the large unexploited potential for reducing thermal energy demand
Cooperation between Austrian and Bulgarian, Romanian firms in energy production,
building renovation and energy efficiency.
Aims at zero-waste, zero-emission production
Object
Developments in solar and energy efficient building: the passive house and the low
energy solar building method.
2009 The Austrian Climate and Energy Fund has a budget of approximately EUR 500 Million to
spend over four years.
The goal of reducing CO2 by 20% by the year 2005 (from 1988 levels). Combined
transport was also supported .
Year of
Introduction Last Revision
BULGARIA
1991
2007
1999
1999
2007
Year of
Introduction Last Revision
Education and Outreach
Type of Instrument
Expert System for an Intelligent Supply of Thermal Energy in
Industry (EINSTEIN)
Bilateral Partnerships to Promote Renewable Energy and Energy
Efficiency
Factory of Tomorrow
Name of Instrument
AUSTRIA
2003
1992
1992
1998
2003
2000
2002
Incentives/Subsidies
Incentives/Subsidies
Tax deduction for investments in energy efficiency & renewable Incentives/Subsidies
energy by Enterprises
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Financial support for demonstration projects - Flanders
Carpooling & Car Sharing - Wallonia, Flanders & Brussels-Capital
Tax deductions for investments in energy efficiency and
renewable energy- Federal
Subsidies to Improve Energy Efficiency of Public Buildings Wallonia & Brussels Capital Region
Brussels - Subsidy schemes for energy efficiency measures
Subsidies for energy efficient equipment - Wallonia
Promotion of modal shift in transport
Energy Fund Grants for Small-Scale Heat Generation - Wallonia
Tax deductions on travel to and from home
Supporting alternative mobility - the Bruxell'Air bonus
Subsidies for Passive House construction and Low-Energy
renovation
2007
2006
2005
2005
2004
2004
2007
Incentives/Subsidies
Subsidies for Passive House construction and Low-Energy
renovation
Renewable Energy Support Scheme - Wallonia
2005
Object
Specific incentives for the construction of passive energy houses or buildings, or
renovations that result in the building meeting low-energy house standards.
Multiple Renewable Energy Sources, electricity
Multiple Renewable Energy Sources, Multi-sectoral Policy
Subsidies for demonstration projects in the fields of rational use of energy (RUE) and
renewables.
Deduction for increased investments which promotes research and development of
new products and advanced technologies with no harmful effect on the environment
and use of energy.
The Walloon Region invests in car sharing and participates in a European project in this
field.
Tax reductions for individuals undertaking energy efficiency and certain renewable
energy investments in their homes
Various financial incentives have been introduced by the regions for improving the
energy efficiency of existing buildings.
Subsidies for individuals, businesses and collective housing owners making energy
efficiency investments (energy audits, efficient equipment, refurbishments, etc.).
Provides subsidies to private sector entities in industry, agriculture and services
wishing to invest in energy efficient equipment meeting minimum standards.
Free train service for civil servant commuters; Extension of the fiscal deduction of
expenses incurred for home-work travel, when using alternative transport.
Awarded grants for the installation of micro-cogeneration systems and high-efficiency
wood-burning furnaces and heating boilers.
2009 Extended the existing deduction for professional expenses relating to journeys between
home and work to cover all modes of transport, including walking, cycling and public
transport.
Have the option of giving up their old vehicles in exchange for incentives offered by the
Regional government in the form of a one- or two-year subscription to a car share
programme Cambio
Specific incentives for the construction of passive energy houses or buildings, or
renovations that result in the building meeting low-energy house standards.
Year of
Introduction Last Revision
Incentives/Subsidies
Type of Instrument
Subsidies for Renewable Energy Investment - Wallonia
Name of Instrument
BELGIUM
Green policies in the EU: A review
31
32
Education and Outreach
Education and Outreach,
Incentives/Subsidies,
Regulatory Instruments
Policy Processes
Policy Processes
Policy Processes
Financial,
Incentives/Subsidies, RD&D
Policy Processes
Education and Outreach
Annual Renewable Energy and Energy Conservation RD&D
Tender - Wallonia
"Enterprise Ecodynamique" (Ecodynamic Company) seal of
approval
CO2/RUE Policy Plan - Flanders
Energy Consumption Labelling of New Appliances
Support for Pre-Feasibility Studies (AMURE) - Wallonia
National Climate Plan - Federal
Rational Use of Energy Decree - Flanders
Technology Subsidies - Wallonia, Flanders & Brussels-Capital
Advice and support for building professionals: The Facilitator
network
Choosing an eco-friendly vehicle: The ecoscore
Source: OECD/IEA
Support for Pre-Feasibility Studies (AMURE) - Wallonia
Flemish Climate Policy Plan 2002-2005
Climate Plan - Brussels-Capital
Energy Fund - Supported Research - Wallonia
Renewable Energy Development Fund - Flanders
Education and Outreach,
Incentives/Subsidies,
Regulatory Instruments
Education and Outreach,
Education and Outreach,
Tradable Permits
Incentives/Subsidies, Policy
processes, Regulatory
Instruments, Tradable
permits
Incentives/Subsidies, Policy
processes, RD&D
Education and Outreach,
RD&D
Education and Outreach,
RD&D
Education and Outreach,
Voluntary Agreement
Education and Outreach
Green Certificates Scheme - Flanders
Green Certificates Scheme - Wallonia
Incentives/Subsidies
Type of Instrument
Fiscal Deduction to Promote Energy Efficiency
Name of Instrument
Object
Multiple Renewable Energy Sources, electricity
To promote energy efficiency measures in the residential sector through a fiscal
deduction.
Multiple Renewable Energy Sources, electricity
The seal, awarded for three years, demonstrates that the company or organisation will
take on various environment-related actions.
Rational use of energy (RUE) and the reduction of CO2 emissions
1999
1990
2005
2003 ended
1983
2004
2000
2002
"Ecoscore" to help consumers choose cars that have a lesser impact on the
environment.
1994 To evaluate potential energy efficiency or renewable energy investments within a
company
Multiple Renewable Energy Sources, Heating and Cooling (Domestic / Industrial Process)
Describes 33 emission reduction projects.
Multiple Renewable Energy Sources, Multi-sectoral Policy
Energy and environmental policies are discussed in the broad context of sustainable
development.
Obligations with regard to a rational use of energy
To reduce the total vehicle-kilometres travelled by 20%, increase the share of total
displacements in the region by bicycle by up to 10%, to promote environment-friendly
vehicles for public transport and introduce mobility plans by private companies.
2000 superseded The European directives on energy labelling of dish-washers, dryers and washing
machines have been transposed into Belgian law.
1990
1994 Multiple Renewable Energy Sources, Multi-sectoral Policy
1999 ended
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, electricity
1999 ended
2003
2000 superseded Multiple Renewable Energy Sources, Multi-sectoral Policy
2002
2002
2000
Year of
Introduction Last Revision
BELGIUM
Tax
Fuel excise tax
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Incentives/Subsidies
Incentives/Subsidies
Fee/Charge
Fee/Charge
Fee/Charge
Fee/Charge
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Voluntary
International Financial Co-operation
PHARE programmes
Support for transport projects
State Environmental Fund of the Czech Republic (SEFCR)
SEFCR Programmes:
Preparation of regional strategies for sustainable
Promotion of environmental education and enlightenment
Promotion of renewable energy sources
Protection of air
Protection of water
Support for environmental research and development Support of energy savings and use of renewable energy
Support to NGOs
Green Investment Scheme
Building Retrofit Subsidies: PANEL programme
Air pollution fee -- major stationary sources
Air pollution fee -- small stationary sources
Electronic road-toll fee
Highway fee Air pollution fee -- Medium stationary sources
Electricity tax
Fuel excise duty
Natural gas tax
Road tax
Solid fuels tax
Measures to Support Low Emission Cars
Voluntary agreement on expansion of natural gas use in
transport
Type of Instrument
Fee/Charge
Excise duty - motor vehicles
Name of Instrument
Subsidy
Energy saving and promotion of alternative energy sources Source: OECD/IEA
Subsidy
Type of Instrument
Allowances for environmentally friendly vehicles Name of Instrument
2006
2008
2008
2009
2004
1967
1991
2007
1995
1991
2008
1993
2008
1993
2005
2005
2005
2005
2005
1991
2008
2007
2009
2008
2008
2010
2010
2008
Year of
Introduction Last Revision
CZECH REPUBLIC
2003
2000
Year of
Introduction Last Revision
CYPRUS
Object
Object
The Czech government made changes to national system of road taxation in an attempt
to encourage the increased deployment of cleaner cars.
Voluntary agreement on expansion of natural gas use in transport
Solid Fuels
Environmental research and development - grants
Support for energy savings projects - grants
Support to NGOs - Grants
Provides householders (family houses and apartment buildings) grants of up to half of
Support for the repair, reconstruction and modernisation of apartment buildings
Ammonia, CO, heavy metals, other pollutants
Other small sources, small combustion sources
Vehicles with max. allowed weight higher than 3,5t
The use of highways by transport vehicles < 3.5 tonnes
Ammonia, CO, heavy metals, other pollutants
Electricity
Motor petrol, LPG Heavy fuel oils, other mineral oils
Gas
Use of passenger cars and other vehicles
grants and loans
Energy performance contracting
Energy Saving Fund, EU - 6. environmental programme
Fund of small projects, National Phare Programme
Cross Border Cooperation, soft loans for municipalities
Combined transport, support of public transport
International Financial Cooperation
Consumption of natural gas, coal and electricity
Use of motor vehicle
Grant scheme
Environmentally friendly vehicles
Green policies in the EU: A review
33
34
Type of Instrument
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Fee/Charge
Fee/Charge
Fee/Charge
Fee/Charge
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Research programme for renewable energy & sustainable energy
Energy Development and Demonstration Programme
Research of environmentally friendly electricity generation
Subsidies for development of new energy technologies
Subsidies for R&D regarding efficient use of electricity
Subsidy for more effective energy use in electricity sector
Subsidy for more environmental friendly electricity
Charge on batteries
Environmental duty for passenger cars and vans
Fee on petrol
Scraping charge on passenger cars and vans
Duty on certain mineral oil products
Duty on CO2
Duty on coal
Duty on electricity
Duty on insurance on pleasure boats
Duty on motor vehicle compulsory insurance
Duty on natural gas
Duty on petrol
Subsidy
Name of Instrument
Subsidy for ecological buildings
Source: OECD/IEA
Type of Instrument
Incentives/Subsidies,
Regulatory Instruments
Incentives/Subsidies,
Regulatory Instruments
Energy Management Act
Education and Outreach,
Incentives/Subsidies, Policy
processes, Regulatory
Instruments
Energy Act
Incentives/Subsidies,
Regulatory Instruments
Secondary Legislation on the Methodology for the Purchase of
Incentives/Subsidies,
Electricity From Renewables and CHP
Regulatory Instruments
State Programme to Support Energy Savings and Use of Renewable Education and Outreach,
Energy and Secondary Sources
Financial, Policy processes,
Regulatory Instruments,
RD&D
Energy Labelling
Education and Outreach,
Regulatory Instruments
Name of Instrument
Act on the Promotion of the Use of Renewable Energy Sources (Act
No. 180/2005 Coll.)
Energy Act - Amended
Object
Multiple Renewable Energy Sources, Framework Policy
Appliances
1991
2004
1950
1995
2002
1982
1998
1977
2002
1992
2000
1995
2002
2002
2001
2007
1999
1976
2005
2001
Education projects and research in energy science
2008 Leaded and unleaded petrol
2010 Natural gas used as motor fuel or town gas
Insurance of private cars, mopeds, motor cycles
Insurance on pleasure boats
Electricity consumption for heating and other purposes
Lignite, pit coal, petroleum coke and others
2010 Petrol, gasoil, diesel oil, fuel oil, electricity and others
Diesel oil, gasoil, autogas, motor fuel and others
Cars registered during 2002 - 2006
Consumption of petrol
Duty on passenger cars (max 9 persons) and vans
Nickel-cadmium movable round cells and others
Subs. for more environmentally friendly electricity production
Subsidy for more effect. energy use in electricity sector
Efficient use of electricity
2007 Development and demonstration of energy technologies
New electricity production technologies
2007 Development and demonstration of energy technologies
Year of
Introduction Last Revision
Object
Multiple Renewable Energy Sources, Heating and Cooling (Domestic / Industrial Process)
2001 superseded
Grants for ecological buildings
Multiple Renewable Energy Sources, Framework Policy
2001 superseded
DENMARK
Multiple Renewable Energy Sources, Framework Policy
Multiple Renewable Energy Sources, Framework Policy
2001 2010
superseded
2010 Multiple Renewable Energy Sources, Electricity
2004
2005
Year of
Introduction Last Revision
CZECH REPUBLIC
1998 ended
Voluntary
Policy Processes
Policy Processes
Public Investment
Policy Processes
Education and Outreach
Regulatory Instruments
Regulatory Instruments
Education and Outreach
Education and Outreach
Education and Outreach,
Policy processes
Agreements on industrial energy efficiency
Climate Change Strategy
Promotion of energy savings in buildings
Promoting energy efficiency in the public sector
Action Plan for Transport
Energy Labelling of New Cars
Finance Act 2009 - energy target for state institutions
Law on design of energy-using products
Energy Labelling of Smaller/Larger Buildings
Promotion of Energy Efficient Electronic Products, The Group for
Energy Efficient Appliances (GEEA)
Baltic Energy Efficiency Group (BEEG)
Source: OECD/IEA
2000
Voluntary
Object
Agreement on phasing out traditional double-glazed windows
Agreement to make environmentally friendly
CO2 emission allowances during the five years of the scheme.
2005 Agreements on industrial energy efficiency
2005
The CO2 quota system
To reduce CO2 emissions from road transport, combining initiatives on green car taxes,
investment in public transport, intelligent traffic systems and new roads.
2005 CO2 emission trading in the electricity sector
Use of heavy goods vehicles
The use of petrol-driven passenger cars
Use of vehicles
First time registration of motor vehicles
1996 superseded
2008
GEEA develops technical definitions and testing methods for the purpose of identifying
and promoting high efficiency electronics products.
Multiple Renewable Energy Sources, Multi-sectoral Policy
Appliances
Approaches to attain Denmark's Kyoto target of 21% GHGs emissions reductions in the
period 2008-2012 compared to 1990
2006
The Act on promoting energy savings in buildings, together with three supplementary
decrees (on energy labelling, inspection of boilers and heaters, and inspection of
ventilation and air conditioning systems respectively) are key instruments
A Circular on improving energy efficiency in state owned institutions imposed certain
2005
obligations on state institutions.
2001 superseded A new Action Plan for reducing CO2 in the transport sector, drawing on earlier
recommendations.
2000
A label showing energy consumption and CO2 emissions is required on the windscreen
of all new passenger cars in all showrooms in Denmark.
2009
The Finance Act 2009 imposed an energy-saving target on state owned institutions
2003
1996
2004
2006
Voluntary
2005
2001
Agreement on support of energy efficient window solutions
Trading system
The CO2 emission allowance system
Agreement on green public purchasing
Trading system
Emissions trading in the electricity sector
2009
1998
Tax
Sustainable Transport - Better Infrastructure Strategy
Voluntary
Tax
Road user charge
1997
2007
Agreement on green public purchasing for local government
Tax
Passenger car fuel consumption tax
2007
Tax
Motor vehicle weight tax
2007
Year of
Introduction Last Revision
Denmark National Allocation Plan 2008-2012
Tax
Type of Instrument
Motor vehicle registration duty
Name of Instrument
DENMARK
Green policies in the EU: A review
35
36
Tax
Tax
Fuel excise tax Heavy goods vehicles tax Subsidy
Subsidy
Fee/Charge
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Education and Outreach, Tax,
Policy, Public Investment,
Policy processes
Policy processes
Education and Outreach, RD&D
Voluntary Agreement
Regulatory Instruments
GHG Emissions Trading
Education and Outreach
Education and Outreach, Tax,
Policy
Energy Audit Programme
Energy Grants for Residential Buildings
Parking fine
Motor vehicle tax (Diesel tax)
Vehicle tax (Sticker tax)
Car tax
Charge on exceeding of GHG emission limits
Excise on fuels and electricity
Strategic stockpile fee
Vehicle tax
Amendment of Car Tax and Annual Vehicle Tax Regimes
Government Decision on Energy Efficiency Measures
Long-term Climate and Energy Strategy
ClimBus Technology Programme
Voluntary Energy Efficiency Agreements for 2008 - 2016
Building Code
National Allocation Plan for Emissions 2008-12
Energy Labeling of Passenger Cars
Government Decision on Energy Efficiency Measures
Source: OECD/IEA
Energy and Climate Policy Strategy
Subsidy
Soft loans for pollution control investments by SME
Type of Instrument
Tax
Air pollution charge
Name of Instrument
Tax
Motor vehicle excise tax Source: OECD/IEA
Fee/Charge
Air pollution non-compliance fees Type of Instrument
Subsidy
Name of Instrument
Environmental Investments Centre (EIC)
ESTONIA
2010
2010
2008
1976
2008
2004 ended
2008
2005
2008
1967
2008
1990
2004
1958
2004
2004
1992
1993
1992
1992
Grant scheme
Object
Object
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Framework Policy
Revisions to the car tax levied on passenger cars upon registration and to the annual
vehicle tax levied on all registered vehicles.
2008 Set minimum requirements in the National Building Code for thermal insulation and
ventilation of new buildings
Emissions Abatement. The plan allocates 36.7 MtCO2 equivalent per year to energy and
industrial facilities.
Offers customers information about the level of energy efficiency and CO2 emissions of
new cars
Resolution on energy saving and energy efficiency measures to be implemented during
the current decade.
2010
2004 Registered vehicles
Motor petrol, diesel, aviation gasoline, and others
2009 Tax on unleaded petrol, kerosene, diesel oil and others
Emission overrun, period 2008-2012
2009 First registration of passenger cars, vans and others
Use of new and old passenger cars, new and old vans
Use of lorries, passenger cars and vans
Unnecessary idling
To improve the energy economy of residential buildings.
Subsidy scheme for energy audits
Pollution control investments by SMEs
The use of lorries and trailers
2010 Consumption of natural gas, coal and electricity
CO2, SO2, Heavy metal emissions
Use of motor vehicle
2009 Charge of excess/illegal emission of pollutants
Year of
Introduction Last Revision
FINLAND
2003
1993
1991
1995
1993
1990
Year of
Introduction Last Revision
1999
Subsidy
Subsidy
Subsidy
Subsidy
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Tax
Tax/ subsidy
Tax/ subsidy
Fee/Charge
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Trading system
Policy processes
Incentives/Subsidies, Tax,
Regulatory Instruments
Public Investment, Regulatory
Instruments
Renewable Energy Feed-in Tariffs (I)
Renewable Energy Feed-in Tariffs (II)
Renewable Energy Feed-in Tariffs (III)
Renewable Energy Feed-In Tariff: Solar PV
Renewable Energy Feed-In Tariff: Biomass
Financing for Energy Efficiency Investments
Government Crediting and Loan Guarantee for Energy Efficiency
and Renewable Energy Investment - FOGIME
Renewable Energy Feed-In Tariff: Hydropower (IV)
Renewable energy market development (support for
demonstration and diffusion)
Promotion of Electric and Natural-Gas Powered Vehicles
Finance Law 2009: Sustainable energy provisions
Extension of Tax Credit for Large Collective Equipment,
Renewable Energy Equipment, Thermal Insulation and Heating
Regulation Equipment
Charge on production of petrol refineries
Annual tax on motor vehicles with large CO2 emissions
CO2-related bonus-malus system f. motor vehicle registration
Tax on company cars
Tax on vehicles axles
General tax on polluting activities
Tax on natural gas
Mineral oils tax
European Union GHG Emission Trading Scheme
Le Grenelle de L'Environnement
Finance Law 2009: Sustainable energy provisions
Hydropower Revival Plan
1999
Subsidy
Tax rebate on some environmentally friendly house equipment
2009
2009
2007
2005
1986
1999
1968
2008
2010
2002 ended
2009
2007
2001
2002
2009
2010
Clean energy development
Feed-in tariffs were established under the Electricity Law of 2000. Wind energy, Small
hydro, Combustible waste, Solar, Biogas from landfills, Municipal solid waste ,
Cogeneration.
Biomass , Methanisation, Geothermal , Animal waste, Solar photovoltaics.
Energy Production including Renewable and Hydropower to boost hydropower to raise
the share of renewable sources of energy
Multiple Renewable Energy Sources, Framework Policy
2007 EU GHG Emission Trading Scheme
Tax on diesel and petrol
Tax on natural gas
Substances emitted into atmosphere
Tax on trucks and tractors using public traffic routes
Tax on company vehicles based on CO2 emissions
Bonus (tax) for vehicles with low (high) emissions
Motor vehicles with CO2 emissions larger than 245 g/km
Production capacity of petrol refineries
To promote the use of natural gas in transport vehicles as a clean-fuel alternative to
other petroleum products by tax reduction.
Contains various provisions to increase financing for energy efficiency investments and
in support of renewable energy.
Tax credit on the acquisition of large collective equipment, renewable energy
equipment and thermal insulation and heating-regulation material
For small and medium-sized businesses' energy sustainability (efficiency and
renewables) investments.
Comprises EUR 6.07 cents/kWh, a bonus of between 0.5 and 3.5 for small installations
and between 0 and EUR 1.68 cents/kWh
Multiple Renewable Energy Sources, Framework Policy
Funds for energy efficiency investments in industry are available from SOFERGIE
2010 Biogas and methanisation, Onshore wind power , Offshore wind power, Photovoltaic,
Geothermal
For solar photovoltaic (PV) electricity, in place for 20 years, are indexed annually. After
2012 they will be reduced by 10% annually.
For electricity produced from biomass are in place.
2002 superseded
2006
Object
Bonus for the acquisition of clean vehicles
2005 Tax rebate on environmentally friendly house equipment
2001 superseded
2001
Subsidy
Subsidy for energy sector 2007
Year of
Introduction Last Revision
Subsidy
Type of Instrument
Bonus for the acquisition of clean vehicles
Name of Instrument
FRANCE
Green policies in the EU: A review
37
38
2001
2000
Financial
Education and Outreach;
Incentives/Subsidies; Policy
processes; RD&D; Voluntary
Agreement
Education and Outreach
Incentives/Subsidies
Education and Outreach;
Regulatory Instruments
Education and Outreach
Education and Outreach
Education and Outreach
Flexible depreciation
Renewable Energy & Energy Efficiency Partnership (REEEP)
Government Crediting and Loan Guarantee for Energy Efficiency
and Renewable Energy Investment - FOGIME
Survey and Pre-feasibility Assistance: Disposition Général des
Aides à la Décision
Network on Energy Efficiency
Incandescent Lamp Phase-out
Ecological Consumption Website - ADEME
Source: OECD/IEA
Campaign SOS Climat
2006
RD&D; Voluntary Agreement
2008
2008
2000
2001 ended
2002
2003
2007
2009
Year of
Introduction Last Revision
National Strategy for Research and Development in the field of
Energy
Public-Private Research Partnerships:
Type of Instrument
Policy Processes, Public
Investment, RD & D
RD&D
PREDIT 4: Sustainable transport
Name of Instrument
FRANCE
Object
The website is aimed at helping people make sustainable choices and reduce their
individual CO2 emissions.
ADEME provided surveys and pre-feasibility studies in renewables, energy efficiency,
waste management, pollution.
An information network on energy efficiency "Points Info Energie"
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Framework Policy
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Heating and Cooling , to reduce dependence on
petroleum products and mitigate climate change.
Multiple Renewable Energy Sources, Framework Policy
To coordinate policies on research and innovation in land transportation, PREDIT has
been in place since 1990.
Multiple Renewable Energy Sources, Multi-sectoral Policy
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
CO2 Building Restructuring Programme (CO2 Gebäude
Sanierungsprogramm)
KfW Housing Modernisation Programme
KfW Build Ecologically Programme
Clean Truck Procurement Subsidies
Special Fund for Energy Efficiency in SMEs
Tax on vehicles based on weight and emissions
Multiple Renewable Energy Sources - Wind: Electricity
2000
2005
Tax
Tax
Policy Processes
Policy Processes
Policy Processes
Education and Outreach;
Regulatory Instruments
RD&D
Voluntary Agreement
Duty on mineral oils
Motor vehicle tax
Climate Change and Energy Programme
Integrated Climate Change and Energy Programme
National Climate Protection Program
Energy Industry Act (Energiewirtschaftsgesetz)
Fifth Energy Research Programme
(5.Energieforschungsprogramme - Innovation und neue
Energietechnologien)
CHP Agreements with Industry (Vereinbarung zwischen der
Regierung der Bundesrepublik Deutschland und der
1985
2008
1996
Policy Processes
Financial;
Incentives/Subsidies; Policy
Processes; RD&D
Regulatory Instruments
Policy Processes;Regulatory
Instruments
Baltic Energy Efficiency Group (BEEG)
Federal States (Länder) Support for Renewable Energy
Eco-design requirements for energy-using products
Green power
Source: OECD/IEA
1998 Ended
Education and Outreach
Mandatory Fuel Efficiency Labelling for Passenger Cars
2004
2000
Education and Outreach
Promotion of Energy Efficient Electronic Products, The Group for
Energy Efficient Appliances (GEEA)
The operators of renewable energy plants not operating under the German Feed-In
Scheme, the EEG, selling the electricity at a premium on the market.
Multiple Renewable Energy Sources, Framework Policy
Multiple Renewable Energy Sources, Multi-sectoral Policy
To provide consumer information about fuel consumption and CO2 emissions with
regard to the marketing of new passenger cars came into force in 2004
Products meeting the specified efficiency criteria are eligible to bear the GEEA label.
To support, among other things, company visits by members of the chambers
2000 Superseded Multiple Renewable Energy Sources, Electricity
2009
Education and Outreach
Partnership for Climate Protection and Energy
Multiple Renewable Energy Sources, Heating and Cooling (Domestic / Industrial Process)
Multiple Renewable Energy Sources, Electricity
Multiple Renewable Energy Sources, Multi-sectoral Policy
Sets reduction objectives by sector and developed a number of related measures.
Multiple Renewable Energy Sources, Multi-sectoral Policy
Tax on petrol, diesel and others
Electricity for buses and rail traffic, manufacture and others
Incentives/Subsidies;
Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz EEG) Regulatory Instruments
2001
2005
2007
2008
1999
Tax
Duty on electricity
Electricity use
Fee/Charge
2009 Use of motorways by lorries and trucks
Fee/Charge
2005
To relieve barriers to initiating energy efficiency measures
To encourage a shift to the use of cleaner vehicles in the heavy goods transport sector.
New KfW 40 or 60 energy-saving houses, passive houses and installation of renewablesbased heating technology in new buildings.
The KfW reconstruction bank provides long-term, low-interest loans for various
measures to modernise and improve housing.
To provide financial support to the activity It is a modernisation programme for existing
buildings to improve energy efficiency and reduce CO2 emissions.
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Multi-sectoral Policy
Object
Heavy goods vehicle road toll
2009
2008
2007
2005
2005
2001
1995
1999
Year of
Introduction Last Revision
Tax on electricity bills
New vehicle car tax system
Incentives/Subsidies
Incentives/Subsidies
Ordinance on the Fee Schedule for Architects and Engineers
Type of Instrument
Name of Instrument
Preferential Loan Programmes offered by the Reconstruction
Loan Corporation (KfW)
GERMANY
Green policies in the EU: A review
39
40
2004
Law 1559/85: Regulation of alternative forms of energy and
specific issues of power production
Source: OECD/IEA
Founding decree of the Centre for Renewable Energy Sources
(CRES)
National Allocation Plan 2008-12
Incentives for Investment in Combined Heat and Power
2008
GHG Emissions Trading
Regulatory Instruments
1987
The plan allocates 69.1 MtCO2 equivalent of emissions per year to energy and industrial
facilities, about 9% less than the allowance initially proposed by Greece (75.5).
Multiple Renewable Energy Sources, Framework Policy
Multiple Renewable Energy Sources, Heating and Cooling (Domestic / Industrial Process)
1985 Superseded Multiple Renewable Energy Sources, Electricity
1990
Incentives/Subsidies;
Regulatory Instruments
Incentives/Subsidies;
Regulatory Instruments
Policy Processes
Multiple Renewable Energy Sources, Framework Policy
Multiple Renewable Energy Sources, Multi-sectoral Policy
1994 Superseded Multiple Renewable Energy Sources, Electricity
Incentives/Subsidies
Development incentives for renewable energy sources
The use of a motor vehicle based on cylindre volume
Law 2244/94
Tax
Tax on motor vehicle usage
Object
Unleaded petrol, diesel, aviation fuel and others
First registration of a motor vehicle
2001
Tax
Mineral oil tax
Year of
Introduction Last Revision
Law 2941/2001
Tax
Type of Instrument
Tax on motor vehicle purchases
Name of Instrument
GREECE
Subsidy
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Tax
Tax
Tax
Tax
Tax
Tax
Trading system
Trading system
GHG Emissions Trading
Education and Outreach;
Incentives/Subsidies; Policy
Processes; Voluntary
Agreement
Education and Outreach
Financial;
Incentives/Subsidies;
Regulatory Instruments;
Tradable Permits
Light bulb change programme
PHARE EEFS Preferential Loans for Energy Efficiency Investments
National Energy Saving Programme - 2006
Feed-in Tariff (Electricity Act)
Air load charge
Air pollution levy
Product charge on other oils
Tax on foreign registered vehicles
Tax on motor vehicles
Vehicle tax
EU Emissions Trading Scheme
Kyoto Emissions Trading Scheme
National Allocation Plan: 2005 - 2007
Renewable Energy & Energy Efficiency Partnership (REEEP)
Structural Funds for Environment Protection and Infrastructure
Operative Programme (EIOP) Subsidies
Implementation of the EU Directive on the Energy Performance of
Buildings
Apple of Our Eyes: ESCOs to Fund Energy Efficiency Improvements Voluntary agreement
for Public Schools
Electricity Act 2005
Incentives/Subsidies; Policy
Processes
Source: OECD/IEA
Efficiency Labeling for Household Appliances
Subsidy
Type of Instrument
Green Investment Scheme: Climate Friendly Home Program
Name of Instrument
Object
2005
2006
2006
2006
A partnership with Energy Service Companies (ESCOs) to improve the energy efficiency of
buildings used for public education.
Multiple Renewable Energy Sources, Electricity
Multiple Renewable Energy Sources, Bioenergy, Hydropower, Wind, solar Thermal,
Ocean - Framework Policy
Ministerial decrees on appliance energy efficiency
Multiple Renewable Energy Sources, Multi-sectoral Policy
2002
Annual allowances for each year of the scheme.
2007
Kyoto ETS CO2
2008 EU ETS for CO2
Tax on vehicles
Use of motor vehicles and trailers
Use of foreign registered lorries
2008 Lubricating oil
2009 Breaking or exceeding air quality regulations
2005 Non-toxic dust, suphur dioxide
Multiple Renewable Energy Sources, Multi-sectoral Policy
A soft-loan credit facility to support the energy efficiency investments by small and
medium-sized enterprises
To replace the energy portion of the Széchenyi Plan
Light bulb change programme
Energy efficiency sub-programme, panel sub-programme
2006
2008
2005
1991
1991
2006
2001
2004
2003
2006
2000
2009
2009
Year of
Introduction Last Revision
HUNGARY
Green policies in the EU: A review
41
42
1999
2010 Auto-diesel, heavy oil f. private boats, Kerosene, others
2002
1999 Superseded Multiple Renewable Energy Sources, Framework Policy
Policy Processes
Education and Outreach;
Incentives/Subsidies; Policy
Processes; Voluntary
Agreement
Incentives/Subsidies; RD&D
Financial; Policy Processes;
Regulatory Instruments;
Tradable Permits
GHG Emissions Trading
House of Tomorrow Programme
Green Paper on Sustainable Energy
Ireland National Allocation Plan 2008-12
Source: OECD/IEA
Renewable Energy & Energy Efficiency Partnership (REEEP)
Policy Processes
2008
The NAP is to allocate CO2 (MtCO2), with allowances made available for purchase.
Multiple Renewable Energy Sources, Multi-sectoral Policy
Stimulating the widespread uptake of superior energy planning, design, specification
and construction practices in both the new home building and home improvement
2001 Superseded markets.
2006 Superseded Multiple Renewable Energy Sources, Framework Policy
2007 Superseded Multiple Renewable Energy Sources, Framework Policy
2008 Registration of motor cycles and other vehicles, based on CO2 emissions
2009 Use of vehicles based on engine size and CO2 emissions
Coal for business use and other use
2009 Petrol, aviation gasoline, and others
Green Paper: Towards A Sustainable Energy Future For Ireland
1993
2005
1999
White Paper: Delivering a Sustainable Energy Future for Ireland
Tax
Mineral Oil Tax
2008
Tax
Tax
Duty on other sorts of oil
Vehicle Registration Tax
Tax
Use of Motor Taxation to encourage more efficient vehicles
2008
To support the development of new low-carbon and energy efficient housing through
providing capital grants to developers.
The Irish government initiated a tax incentive scheme enabling companies to write off
100% of the cost of designated energy efficient equipment against corporation tax in the
year of purchase.
To reform its motor taxation policies to favour more environmentally friendly vehicles,
with lower CO2 emissions and better fuel economy.
Tax
Tax
Energy Efficiency Tax incentives for business
2008
Tax
Incentives/Subsidies
Low Carbon Homes Programme
2009
2001
Object
Providing for greater flexibility for the payment of new house grants in the future,
including differential rates to encourage more efficient use of energy, and the use of
renewable forms of energy.
Mineral Oil Tax on Coal
Incentives/Subsidies
Year of
Introduction Last Revision
Motor Vehicle Tax
Incentives/Subsidies
Support for Exemplar Energy Efficiency Projects
Type of Instrument
New House Grants
Name of Instrument
IRELAND
2008
2010
2001
Subsidy
Subsidy
Subsidy
Subsidy
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Subsidies to promote energy efficiency Subsidies to reach energy efficiency goals
Tax credit for biomass heating systems Tuscany -- Reduced rates in regional tax on productive activities
(IRAP)
Feed-In Tariff for Solar Thermodynamic Energy
New Feed-In premium for photovoltaic systems
Funding for energy efficiency, renewable energy and bike-sharing
Smart Grid Development Incentives
Special fund to support the implementation of energy efficiency
targets
Car Sharing
Excise duty on oil/petrol
Tax for registration of vehicles
Additional regional tax on natural gas consumption
Additional tax on electricity - towns / provinces
Charge on air pollution
Excise duty on energy products Excise duty on energy products Regional oil/petrol tax Tax on electrical energy - State Tax on insurance for civil liability
Tax allowance for efficient fridges
Tax allowance for electric motors
EU Emission Trading Scheme for CO2 Framework agreement between the Ministry of Environment and
ENEL "One cent for the climate"
Provisions on GHG emissions reduction
2004
Subsidy
Subsidy Program to Increase Bicycle Use 1961
2007
2007
2007
1999
2008
Voluntary
1998
1999
1977
1988
1997
1993
1953
1990
1998
Financial,
Incentives/Subsidies, Policy
Processes
Fee/Charge
Fee/Charge
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Trading system
Voluntary
2010
2010
2007
2001
2010
2007
2009
2008
Subsidy
Personal income tax allowance for public transport
2007
Object
Consumption of natural gas, coal and electricity
Use of motor vehicle
Additional regional tax on natural gas consumption
Consumption of electricity
SO2 Emissions
Consumption of any sources of energy
Use of motor vehicle
Special tax on oil
Industrial and private consumption
Tax on insurance for civil liability
For the purchase of high-efficiency fridges and freezers.
For the purchase or installation of high-efficiency electric motors.
Emission trading Scheme
Use of electric vehicle
2008 Fund collecting for environmental purpose
2010
2010
2010
2007
2007
2009
2010
2008
2000
2002
The guidelines for the national policies and measures for the GHG emissions reduction.
It also sets the targets.
To support investments related to the development of smart grids and the installation
of smart meters by electricity distributors.
A special fund for the implementation of objectives related to energy efficiency,
environmental protection and workplace safety
To encourage the sharing of private means of transport among several users
For bike-sharing projects, energy efficiency measures and the use of renewable energy
sources by municipalities, institutions and regional managers of national parks.
To stimulate the production of electricity from solar thermodynamic plants, including
hybrid ones.
Eco friendly industrial activities
Tax credit for biomass heating systems
Use of energy efficiency items
2009 Purchase eco friendly goods and furniture
2009 Purchase of eco-friendly vehicles like bicycles
2009 Allowance to use public transportation
2009 Car bonuses subsidies
Year of
Introduction Last Revision
Subsidy
Type of Instrument
Motor vehicle scrapping subsidies Name of Instrument
ITALY
Green policies in the EU: A review
43
44
2000
2009
Voluntary
Incentives/Subsidies; Policy
Processes; Tradable Permits
Education and Outreach;
Incentives/Subsidies; Policy
Processes; Voluntary
Agreement
Education and Outreach;
RD&D; Voluntary Agreement;
Regulatory Instruments;
Tradable Permits
Voluntary Agreement
2009
2007
1991
2008
Regulatory Instruments;
Regulatory Instruments;
RD&D
Policy Processes
Policy Processes
GHG Emissions Trading
Research for energy efficiency and renewable energy in urban
areas
Energy Audits in Public Buildings
Vehicle Certification
Industry 2015: Industrial Innovation Projects
Climate Change Action Plan
Measures to promote distributed generation and market
liberalisation
National Allocation Plan 2008-2012
Source: OECD/IEA
2009
Education and Outreach; ,
Regulatory Instruments;
Incentives/Subsidies; RD&D;
2007
2008
1998
2009
Regulatory Instruments;
Implementation Regulation: calculation methodology of building
energy performance
National Guidelines for Energy Certification Scheme of buildings
1996 ended
Policy Processes
1999
2000 ended
2002
2001
1998
1999
Voluntary
Voluntary
Voluntary
2001
Voluntary
2001
1999
Voluntary
Voluntary
1998
Year of
Introduction Last Revision
Voluntary
Type of Instrument
Financial Law of 8 Dec. 1995 No. 549
Voluntary Climate Pact
Demand Side Management to Reduce GHG Emissions - ENEL
Voluntary Agreement
Programmatic Agreement between Ministry of the Environment
and FIAT and Unione Petrolifera Voluntary agreement between State and Local Institutions, Trade
Unions, car industries and farmers Voluntary agreement between Ministry of Environment, Ministry
of Industry and ENEL Finance Act 2008 : Renewable energy provisions for the Green
Certificates System
Renewable Energy & Energy Efficiency Partnership (REEEP)
Memorandum of Understanding between Ministry of Environment
and PIRELLI Memorandum of Understanding between Ministry of Environment
and Italian Mines Association Memorandum of Understanding between Ministry of Environment
and Ministry of Public Works Memorandum of Understanding between Ministry of Environment
and MONTEDISON Programmatic Agreement between Ministries and SONDEL
Name of Instrument
ITALY
Object
To cut C02 emissions from sectors covered by the ETS.
Multiple Renewable Energy Sources, Electricity
Energy performance monitoring in vehicle certification was set up and is being
progressively implemented.
Industry 2015 programme of two new funding mechanisms and a call for projects to
promote innovation in Italian industry.
To improve efficiency and energy savings for electricity and heat from renewable
sources, and in particular for the development of solar thermal,
Energy audits in public buildings and implementation of cost-effective interventions.
Buildings, Building Codes, Energy Performance
Buildings, Building Codes, Energy Performance
Multiple Renewable Energy Sources, Framework Policy
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Electricity
Multiple Renewable Energy Sources, Bioenergy, Hydropower, Wind, Solar, Geothermal,
Ocean - Electricity
Multiple Renewable Energy Sources, Multi-sectoral Policy
Collaboration for implementation of "Green" initiatives
Use of biofuel in transport sector
Use of low emission transportation vehicles
Electric power plants powered by methane gas
collaboration for implementation of "Green" initiatives
Sun power thermal plants in subsidised housing
Collaboration for implementation of "Green" initiatives
New initiatives in environmental and energetic fields
1995
Tax
Tax
Tax
Fuel excise tax Heavy-duty vehicles tax Motor vehicle import duty Source: OECD
1994
Tax
Turnover tax on vehicles
1993
2002
1991
1991
1991
Fee/Charge
Fee/Charge
Air emission non-compliance fees
2000
1996
Fee/Charge
Subsidy
Tax exemptions for bio-fuels Air pollution charge for mobile sources/fuels Subsidy
Lithuanian Environmental Investment Fund (LEIF) 1996
Object
2001 Use of motor vehicle
Charge of excess/illegal emission of pollutants
Object
1997 Customs value of old import vehicle
2002 The use of lorries and trailers
2002 Consumption of natural gas, coal , electricity
Taxable vehicle value exceeding 100,000 LTL
1999 Other pollutants emissions
1999 Use of motor oil
1999 Charge of excess/illegal emission of pollutants
Excise duty and VAT exemptions
Water protection
Energy efficiency improvements in residential buildings
2001 Old vehicle duty
2007 Consumption of natural gas, coal and electricity
2002 CO2, SO2, Heavy metal or other particle emissions
Year of
Introduction Last Revision
LITHUANIA
1999
1997
1995
1994
2001
Year of
Introduction Last Revision
Air pollution charge for stationary sources Subsidy
Energy Efficiency/Housing Project (EEHP
Type of Instrument
vehicles excise tax Name of Instrument
Tax
Tax
Fuel excise tax Source: OECD
Fee/Charge
Fee/Charge
Annual Motor vehicle charge
Air emissions charge Fee/Charge
Type of Instrument
Air pollution non-compliance fees Name of Instrument
LATVIA
Green policies in the EU: A review
45
46
2008
Voluntary Agreement
Education and Outreach,
Regulatory Instruments
Education and Outreach,
Incentives/Subsidies
Policy Processes
Luxembourg National Allocation Plan 2008-12
Voluntary Agreement to Raise Industrial Energy Efficiency
Energy Performance of Residential Buildings
Think Climate - Financial aid programme for energy savings and
renewable energy in housing
CO2 Reduction Action Plan
Fee/Charge
Fee/Charge
Annual Motor vehicle License
Electricity charges
Source: OECD
Licenses for operation of activation related to energy network serv Fee/Charge
Fee/Charge
Name of Instrument
Annual Vessel Registration
Source: OECD
Type of Instrument
2008
Fee/Charge
Fee/Charge
Tax
Tax
Tax
Incentives/Subsidies,
Voluntary Agreement
GHG Emissions Trading
Tax on electricity distribution
Tax on electricity production
Annual vehicle tax
Mineral oil tax
Tax on heating fuels
Energy Efficient Partner
Energy Efficiency Labelling
2004
Incentives/Subsidies
Investment Grants for SMEs and non-industrial enterprises
Year of
Introduction Last Revision
MALTA
1999
2008
2005
2008
2008
2005
1994 superseded
Year of
Introduction Last Revision
2005
Type of Instrument
Feed-in tariffs for renewable energy and cogeneration: Reglement Incentives/Subsidies
Grand-Ducal (30 mai 1994)
Feed-in tariffs for renewable energy and cogeneration: Law of 14 Incentives/Subsidies
October 2005
Grants for energy efficiency and renewable energy investments
Incentives/Subsidies
Name of Instrument
LUXEMBOURG
Oil distributor license
Use of electricity
Use of motor vehicle
Annual registration fee for small ships
Object
Label on electrical households appliances (washing machines, dryers, refrigerators,
freezers)
Multi-sectoral measures targeting emissions reductions.
All new buildings and existing buildings undergoing significant renovation must meet
new energy performance requirements.
Allocates an average of 2.5 Mt annually, clearly less than the 3.4 Mt from 2005 to 2007,
the first commitment period.
To increase industrial energy efficiency
Electricity distribution
Electricity production
The use of lorries and passenger vehicles
Leaded and unleaded petrol, diesel, kerosene, others
Gas oil and kerosene use for heating
Building
Grants are provided to companies investing in infrastructure, buildings, land,
equipment and installations.
Object
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Incentives/Subsidies;
Education and Outreach;
Incentives/Subsidies;
Education and Outreach;
Education and Outreach;
Education and Outreach;
Voluntary
Education and Outreach;
Policy Processes; Regulatory
Instruments Voluntary
Agreement
Financial;
Incentives/Subsidies; Policy
Processes; Tradable Permits
Incentives/Subsidies; RD&D
CO2-reduction plan
General support for environmental projects and activities
Subsidies to reduce transport CO2 emissions
Carbon credits
Subsidies for sustainable electricity generation
Support to environment and technology research
Duty on petrol
Energy Tax
Excise duty on mineral oil (other than petrol)
Fuel tax (tax on coal)
Motor vehicles tax (Motorrijtuigenbelasting)
Tax in connection with mineral oil stocks
Tax on heavy vehicles
Tax on passenger cars and motor cycles (BPM)
Tax for Commuters
Tax to Promote CHP
Kilometre Pricing System for Road Usage
Energy Investment Tax Deduction (EIA)
Environmental Tax on Flights from Netherlands
Tax Reduction for Investments in Energy Saving Equipment and
Sustainable Energy (Energie-investeringsaftrek)
Energy Investment Deduction (EIA)
Regulatory Energy Tax (Regulerende Energie Belasting - REB)
More with less Programme
Labelling of Vehicle Efficiency (Energielable voor autos)
Energy Labels on Passenger Cars
Covenant for the basic metals sector
Energy Transition
Energy Research Strategy (EOS)
Energy Tax Regime
Policy for heating and cooling (aanvalsplan warmte)
Subsidy
Type of Instrument
CO2 re-use through underground storage
Name of Instrument
Object
Encouraged entrepreneurs who invest in relatively innovative energy-efficient
technologies or projects of renewable energy
A new environmental tax will apply to plane tickets for all flights leaving the Netherlands
In 2011 this trial process should be finished.
Tax deductions for commuting in a private car were eliminated from 1 January 2001.
2010 Registration of motor cycles and passenger cars
2010 Use of highways by lorries > 12t
2009 Leaded and unleaded petrol, diesel and others
Ownership of vans, lorries and trucks
Coal
2010 Diesel used as motor fuel, for heating and aircraft
2009 Light fuel gas, natural gas, electricity consumption
2010 Unleaded and leaded petrol
Climate-indifferent energy, GHG, waste and others
Biomass installations, offshore wind generation and other.
Carbon credits in Develop. Countries and Eastern Europe
Transport of goods and persons reducing CO2 emissions
Environmental projects and activities
CO2-reduction plan tenders
Pilot projects on CO2 re-use
2004
2005
2006
1992
2001
2006
2008
2008
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Electricity
Multiple Renewable Energy Sources, Framework Policy
Environmental impacts of the basic metals sector
All new passenger cars carry an energy label stating its fuel consumption, level of CO2
emissions and efficiency category.
Aims to make 500 000 buildings 30% more energy efficient in the period 2008 - 2011,
increasing to 2.4 million buildings by the year 2020
A direct financial advantage to Dutch companies that invest in energy-saving equipment
and sustainable energy.
1997
Multiple Renewable Energy Sources, Heating and Cooling (Domestic / Industrial Process) Electricity
1996 Superseded Multiple Renewable Energy Sources, Fossil Fuels -Electricity
2006
2008
2004
2007
2001
2001
2006
1995
2001
1992
1996
1990
1998
2002
Year of
Introduction Last Revision
THE NETHERLANDS
Green policies in the EU: A review
47
48
Education and Outreach;
Policy Processes; Regulatory
Instruments Voluntary
Agreement
Incentives/Subsidies; RD&D
Public Investment; Policy
Processes; Regulatory
Instruments
Financial;
Incentives/Subsidies;
Tradable Permits
Policy Processes
Tax Credit, Preferential Loans,
Tradable Permits
Education and Outreach;
Policy Processes; Tax
Education and Outreach;
Regulatory Instruments
Renewable Energy & Energy Efficiency Partnership (REEEP)
Renewables for Government Buildings
Green Funds
Regulatory Instruments,
Voluntary Agreement
Education and Outreach;
Policy Processes; Tax
Education and Outreach,
Policy Processes;
Education and Outreach,
Voluntary Agreement
Promotion of Energy Efficient Electronic Products, The Group for
Energy Efficient Appliances (GEEA)
Technical Vehicle Upgrades for Fuel Efficiency
Source: OECD/IEA
EcoDriving (Het Nieuwe Rijden)
Energy Savings in Greenhouse Horticulture (GLAMI)
Implementation of EU Energy Performance of Buildings Directive
(EPBD): Energy Performance Certificate and Energy Labeling
Compass (Kompas)
Energy Efficiency Action Plan
Green Funds
RD&D Programme DEN (duurzame energie in Nederland)
Financial;
Incentives/Subsidies
Policy Processes
Type of Instrument
MEP: Environmental Quality of Electricity Production
(Milieukwaliteit van de Elektriciteitsproductie)
Renewable Energy & Energy Efficiency Partnership (REEEP)
Name of Instrument
2000
2000
2006
2006
2006
2006
1995
2007
1995
2001
2001 ended
To increase the passenger vehicle fleet's fuel efficiency by optimizing driving behavior so-called ecodriving - and encouraging a modal shift from passenger vehicles to other
forms of transport.
GEEA develops (and revises regularly) technical definitions and testing methods for the
purpose of identifying and promoting high efficiency electronics products.
CO2 Reduction Program/freight transport.
Covers the whole built environment, aimed at reaching the CO2-reduction goals as set in
the Kyoto agreement.
Building labelling scheme to encourage property buyers to choose property using
relatively less fossil energy - either through integrated renewable energy generation or
the building's energy efficiency.
To improve the efficiency of greenhouse horticulture
To improve energy efficiency and to achieve the indicative targets set for 2010 (11.376
gigawatt hours) to 2016 (51.190 gigawatt hours).
Public investment including investments in renewable energy.
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Heating and Cooling (Domestic / Industrial Process) Electricity
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Framework Policy
2002
2002
Object
Multiple Renewable Energy Sources, Electricity
2003 ended
Year of
Introduction Last Revision
THE NETHERLANDS
Tax
Trading system
Policy Processes
GHG Emissions Trading
EU Emissions Trading Scheme
Polish Energy Policy until 2030
Green Investment Scheme (GIS)
Source: OECD
1990
Fee/Charge
Excise tax on energy products
2009
2009
2005
1990
2001
Incentives/Subsidies
Loans from the National Fund for Environmental Protection and
Water Management
Charge on air pollution
1998
1992
Object
Investment and non-investment projects
A long-term strategy for the energy sector, fuel and energy demand forecasts, and an
implementation programme of policies and measures until 2012.
"Greening" of financial resources generated from the sale of AAUs, support effective
management of the scheme and that funds are used for climate protection.
2008 EU ETS for CO2
2007 Unleaded petrol, diesel fuels, and others
2010 Charge on various air pollutants including CO2
2010 Low-interest loans to environmentally sustainable projects.
2001 Rationalisation of heat consumption in HH sector
Year of
Introduction Last Revision
Subsidy
Subsidy
Type of Instrument
Rationalisation of heat consumption in household sector
(ECOFUND foundation)
Grants and loans from debt for environmental swap scheme
Name of Instrument
POLAND
Green policies in the EU: A review
49
50
2010
Tax
Tax
Tax
Tax
Incentives/Subsidies
Tax, Public investment
Public investment
Incentives/Subsidies;
Regulatory Instruments
Education and Outreach;
Incentives/Subsidy, Tax, Public
Investment, RD&D
Incentives/Subsidies;
Regulatory Instruments
Policy Processes
Municipal tax on vehicles
Tax on petroleum and energy products
Truck tax
Taxation on less efficient light bulbs
Energy Efficiency and Endogenous Energies (E4) Programme
Investment and Employment Initiative Programme
State vehicle park procurement rules: Fleet renewal and CO2
emission limits
Regulation for Electric Mobility in Portugal
1991
2002
Regulatory Instruments
Education and Outreach;
Regulatory Instruments
Management Regulation of Energy Consumption in Transport
(RGCEST)
Energy Efficiency Requirements for Appliances
Source: OECD
Object
Energy policies as pivotal in reconverting and modernising the Portuguese economy,
promoting a territorially-balanced growth and fostering job creation
The buildings certification system in Portugal operates in conjunction with two sets of
building regulations applied to construction.
To increase energy efficiency and security of supply by creating a framework
Establishes a pilot network of electric mobility stations, as well as incentives to use
electric vehicles.
To encourage efficiency by citizens and businesses and support energy efficiency
projects
CO2 emission limits on 90% of new vehicles purchased by the government.
Improved energy efficiency of public buildings
Multiple Renewable Energy Sources, Multi-sectoral Policy
A new tax on inefficient lighting equipment
Vehicles for the transportation of goods
Unleaded and leaded petrol, coal, diesel and others
Aircraft, diesel driven passenger vehicles, boats
Use of motor vehicles
2010 Passenger vehicles and motor cycles
2007 Vehicles for the transportation of goods,
2005 superseded
Policy Processes
National Energy Strategy
Regulations on Thermal Behaviour of Buildings (RCCTE)
2007
Education and Outreach;
Regulatory Instruments,
Policy Processes
Regulatory Instruments
2010
2010
2010
2009
2001 ended
2008
National System for Energy and Indoor Air Quality Certification of
Buildings (SCE)
National Energy Strategy 2020 (ENE 2020)
Implementation of the CHP Directive
Energy Efficiency Fund
2009
Tax
Motor vehicle circulation tax
2007
Tax
Excise tax on motor vehicles
2007
Tax
Circulation tax
2007 First time registration of motor vehicles
Year of
Introduction Last Revision
Tax
Type of Instrument
Motor vehicle sales tax
Name of Instrument
PORTUGAL
Name of Instrument
Tax
Tax
Tax
Tax
Tax
Tax
Voluntary
Voluntary
Policy Processes
Policy Processes
Regulatory Instruments
Excise duty on electricity
Excise duty on natural gas
Excise on mineral oils
Road tax
Tax on installing nuclear equipment (or nuclear facility tax)
Tax on permits to enter historical city district with motor vehicle
Eco-labelling scheme
Environmental Management Systems accord. to ISO 14000
Decree on the Regulation of Network Industries
Slovak Republic New Energy Policy
Act on Energy and amendments
Renewable energy sources and energy efficiency improvement
Payment for water rights
CO2 tax
Energy Efficiency tax
Fuel excise tax
Vehicles excise tax
Emission allowances permit trade system
Source: OECD/IEA
Subsidy
Fee/Charge
Tax
Tax
Tax
Tax
Trading system
Type of Instrument
Tax
Excise duty on coal
Name of Instrument
Tax
Air pollution charge - large and medium sources
Source: OECD/IEA
Fee/Charge
Air pollution charge - small sources
Type of Instrument
Subsidy
Subsidies for environmental purposes
Name of Instrument
1992
Tax
Tax
Tax
Tax
Annual vehicle tax
Fuel excise tax
Vehicles excise tax
Vehicles import duty
Source: OECD/IEA
1996
Fee/Charge
Fuel road charge
2000
2002
2002
1997
2010
1999
1999
2004
2008 Subsidies for renewable energy sources and efficiency
2008 Use of hydroelectric power production up to 10 MW
2008 CO2, SO2, Methane emission
Consumption of natural gas, coal, electricity
2009 Consumption of natural gas, coal, electricity
2006 Use of vehicle by value
2009 Emission allowances permit trade system
Object
Multiple Renewable Energy Sources, Fossil Fuels, Electricity
Multiple Renewable Energy Sources, Bioenergy, Multi-sectoral Policy
Multiple Renewable Energy Sources, Electricity
1998 Environmental Management System
2002 Eco-label for various consumer products
2004 Entry and parking of motor vehicles in historical city district
2004 Distance from 5 to 20 kilometres
2004 Personal vehicles, utility vehicles and buses
2004 Unleaded & leaded petrol, diesel, kerosene and others
Natural gas use as propellant or for heat generation
Electricity
Coal
2003 CO2 emissions and emission of other substances
2003 Emissions to air from small sources
2000 Non-returnable subsidies, remunerative loans
Year of
Introduction Last Revision
SLOVENIA
2005
2006
2007
1996
1997
1993
2002
1993
1993
2008
2008
2008
1992
1967
1991
Object
2006 Consumption of natural gas, coal, electricity
use of vehicle by level of pollution
2001 Customs value of the vehicle
2002 Use of vehicle
Use of fuel
Foreign registered vehicles exceeding standard dimensions
2003 CO2, SO2, Methane emission
Year of
Introduction Last Revision
SLOVAK REPUBLIC
1993
1998
1996
Fee/Charge
Fee/Charge
Air emissions charge
Object
2005 Charge of excess/illegal emission of pollutants
Year of
Introduction Last Revision
2000
Type of Instrument
Fee/Charge
Fee for vehicles exceeding standard dimensions
Air emission non-compliance fees
ROMANIA
Green policies in the EU: A review
51
52
1987
Incentives/Subsidies
Education and Outreach,
Incentives/Subsidies
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Trading system
Financial; Policy Process;
Regulatory Instruments
Regulatory Instruments
Financing for Renewables and Energy Efficiency
Renove Plan for Electric Appliances
Andalusia -- Tax on air pollution
Aragon -- Tax on environmental damages caused by emissions to
air
Canary Islands -- Tax on petroleum fuels
Castille La Man. - Tax on activities that cause environmental harm
Extremadura - Tax on production and distribution of electricity
Galicia - Tax on emissions to air
Murcia - Tax on air pollution
Tax on electricity
Tax on mineral oils
Tax on motor vehicle
Tax on retail sales of certain mineral oils
Car registration tax linked to CO2 emissions
Tax on vehicle registration
GHG emissions trading scheme
Sustainable Economy Law
Building Energy Certification
Regulatory Instruments
Policy Processes
Policy Processes
Policy Processes
Education and Outreach;
Policy Processes; Voluntary
Agreement
Education and Outreach;
Regulatory Instruments
2006
Incentives/Subsidies
Incentives/Subsidies
Feed-in tariffs for Small Scale Co-generation/Renewable
Electricity Production
VIVE Plan (Innovative Vehicle - Ecological Vehicle)
Plan for the Progressive Replacement of Electricity Meters (Smart
meters)
Regulation on Indoor Heating and Air-conditioning Systems (RITE)
Spanish Strategy on Climate Change and Clean Energy 2007-2012New National Energy Plan 2008-16
Renewable Energy Plan 2005 - 2010
Renewable Energy & Energy Efficiency Partnership (REEEP)
1999
2008
Incentives/Subsidies
Feed-in tariffs for electricity from renewable energy sources
(Special regime)
2008
2008
2008
2007
2008
2005
2002
Object
To improve the energy efficiency of buildings.
Multiple Renewable Energy Sources, Multi-sectoral Policy
The plan predicts an annual growth of 1.4% in energy demand.
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Multi-sectoral Policy
Replacement of electricity meters
Multiple Renewable Energy Sources, Multi-sectoral Policy
General scheme
SOx plus NOx emissions
Production, storage and transform. of electrical energy
SOx plus NOx emissions
2006 Air pollution
The production or importation of electricity
Leaded & unleaded petrol, diesel, kerosene and others
Use of motor vehicles
Unleaded petrol, diesel, kerosene and others
New calculation method for the registration tax of passenger cars in Spain, linked to car
CO2 emissions/fuel consumption.
2008 First registration of new motor vehicle bases on CO2 emission
2000 Leaded and unleaded petrol, diesel, fuel, oil and others
CO2 emissions SO2 emissions
Emission of pollutants
2009 Royal Decree 661/2007, which was published on 26 May 2007, regulates the production
of electricity under a special regime applicable to electricity produced from renewable
energy sources.
2001 Using cogeneration systems or renewable resources, or biofuel or non-renewable
waste.
To subsidies the purchase of vehicles emitting less CO2 and to encourage the recycling
and dismantling of polluting vehicles over 10 years old.
Provided a credit line for investment in renewable energy and improving efficiency
projects
Grants
Subsidies for the refurbishment of existing residential buildings
2006 Air quality, water quality, renewable energy and others
2010 Planned
2005
1992
2008
2001
1998
1996
2006
1998
2004
2006
2002
2007
2008
Subsidy
Grants for Energy Efficiency in Buildings
1997
Year of
Introduction Last Revision
Subsidy
Type of Instrument
Tax deduction for environmental investments
Name of Instrument
SPAIN
Name of Instrument
2010
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Subsidy
Fee/Charge
Fee/Charge
Fee/Charge
Fee/Charge
Tax
Tax
Tax
Tax
Tax
Subsidies for energy research
Support for climate investments
Support for environmental goals and supervision
Support to introduce wind power, etc., on the market
Grants for Conversion, Energy Efficiency and Solar in Public
Buildings
Energy Audits for Companies
Eco Car Subsidy
Emission landing charges for air planes
Environmental sanction fee
Excavation charge
Road user charge
Energy and CO2 tax on fuels except petrol
Energy and CO2 tax on petrol
Energy tax on electricity
Motor Vehicle Tax
Tax on nuclear power
Tax Reduction for Environmental and Energy Investments in Public Tax
Buildings
Tax Reduction for Fossil Fuels used for Heat Production in CHP
Tax
Plants
Tax Reduction for Installation Costs of Biomass Heating Systems
Tax
and Energy Efficient Windows
2005 ended
Subsidy
2004 ended
2004
2005 ended
1983
1991
1998
1999
1999
1998
2007 ended
2004
2003
1993
Subsidy
Subsidies addressing climate change
1991
Subsidy
Research subsidy on electrical and hybrid vehicles
Object
Object
2008 Thermal installation in nuclear power station
Use of motor vehicles
2010 Electricity consumption
2010 Unleaded petrol
2010 Diesel, LPG, Methane, natural gas, heating oil and others
2001 Use of lorries
Material permitted for abstraction
Violations of the environmental code
Grants for companies which use at least 500 MWh per year of energy, therefore
relatively energy-intensive companies.
Private individual who buys a new low-emission car for private use will receive an "eco
car subsidy" of SEK 10,000.
Airplane motors with classification 0-6 according to the LTO-cycle
Support to introduce wind power, etc., on the market
Support for environmental goals and supervision
Support for climate investments
Subsidies for energy research
Subsidies addressing climate change
2000 Research subsidy on electrical and hybrid vehicles
Investment subsidy for renewable energy
Environmental research
The Administration is channelled to finance energy audits in beneficiary sites. Number is
estimated to be 260 for 2008-2012.
Governing the basic quality requirements that must be met by buildings, including their
installations, to comply with the basic safety.
As of 1 November 2007, an Energy Performance Certificate must be provided to buyers or
renters of buildings.
2002 Standards for energy savings in buildings , which set mandatory minimum requirements
(NBE-CT-79) for thermal insulation.
Year of
Introduction Last Revision
SWEDEN
2007
Investment subsidy for renewable energy
Type of Instrument
Education and Outreach;
Regulatory Instruments
2007
2007
1999
Year of
Introduction Last Revision
Subsidy
Name of Instrument
Type of Instrument
Education and Outreach;
Policy Processes; Regulatory
Instrument
Education and Outreach;
Regulatory Instruments
Regulatory Instruments
Environmental research
Source: OECD/IEA
Building Energy Certification
Technical Building Code
Energy audits
Housing Labels
SPAIN
Green policies in the EU: A review
53
54
Incentives/Subsidies
Education and Outreach;
Public Investment, Voluntary
Agreement, RD&D
Education and Outreach;
Funds
Education and Outreach;
Regulatory Instruments
Education and Outreach;
Regulatory Instruments
Education and Outreach;
Voluntary Agreement
Education and Outreach;
RD&D
Voluntary Agreement
Renewable Energy Investment Support Programme
Fuel Consumption and CO2 Labels for New Cars
Funding to Develop Sustainable Cars
Education and Outreach;
Trading system
Education and Outreach;
Policy Processes, Tax,
Regulatory Instruments
Energy Labelling of Domestic Appliances and Windows
GHG emissions trading scheme
Energy Declaration of Buildings Act - Incentives for Investment in
Lower-Energy Buildings
Source: OECD/IEA
Regulatory Instruments
Building Performance Standards (Building Regulations)
EKO Energy
Information Campaign on Energy Efficiency
Green Approach for Airplanes
Mandatory Eco-driving for Driver's License
Building Energy Performance Certificates
Government Subsidies for Local Energy Efficiency Measures
Tax; Incentives/Subsidies
Type of Instrument
Local Investment Programmes (LIP)
Name of Instrument
2006
2005
1995
1995
1997 ended
2006 ended
2006
2007
2008
2010
2000 ended
2002
1997 ended
1998 ended
2008
Year of
Introduction Last Revision
SWEDEN
Object
To promote the improvement of the energy performance of buildings
GHG emission
Green Approach is the equivalent to eco-driving, but for airplanes.
Energy performance certificate
Energy efficiency
Multiple Renewable Energy Sources, Bioenergy, Hydropower, Wind - electricity
Multiple Renewable Energy Sources, Framework Policy
2003
2009
2001
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Incentives/Subsidies
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Tax
Pay-As-You-Save (PAYS) pilots
Salix Project
Scottish Government Central Heating Programme
Wales Home Energy Efficiency Scheme (HEES)
Warm Front Scheme
Scotland - Small business energy efficiency loans
Scottish Government Warm Deal Programme
Northern Ireland - Energy Efficiency Levy
Reduced VAT for energy saving materials
Non-fossil fuel obligation levy
Climate Change Levy
Duty on hydrocarbon oils
Vehicle excise duty
Company Car Tax Reform
Vehicle Excise Duty (VED): fuel type and CO2 emission vehicle
bands
Vehicle Excise Duty (VED)
2004
Tax
Tax
Tax
Enhanced Capital Allowances (ECA) - Energy Technology List
Reduced VAT for energy saving materials
2000
2001
2004
Tax, Voluntary Agreement
Exemption from Climate Change Levy for Energy-Intensive
Businesses Under Climate Change Agreements
Landlords' Energy Saving Allowance (LESA)
2004
2001
1998
1997
1999
1999
2000
2000
2001
2006
2009
2007
Incentives/Subsidies
2010
2000
Energy Efficiency Loans for Small or Medium sized Enterprises
(SMEs)
Bio-energy Infrastructure Scheme
Subsidy
Feed-in Tariffs for renewable electricity
1996
Subsidy
The England Rural Development Programme
2002
Object
Several schemes
Investments in fuelling infrastructure, purchase of business cars
2008
It is charged on certain energy saving materials, provided that they are professionally
installed in a residential or charitable property (such as non-business or village hall).
All businesses in sectors that meet or exceed a 12% threshold of energy intensity are
now eligible to enter a CCA.
Building
The UK Company Car Tax system was revised so as to be make carbon-based.
Use of motor vehicles
2010 unleaded & leaded petrol, diesel, biodiesel and others
2009 Consumption of natural gas, coal, electricity and others
2000 A reduced rate of VAT of 5% - the lowest VAT rate allowed under EU agreements - is
charged on certain energy saving materials
Electricity production
Building
Building
Building
Building
Building
For small-scale low-carbon electricity produced from a variety of renewable energy
technologies.
Grants to buyers of clean-fuelled vehicles including vehicles running on natural gas,
liquefied petroleum gas and electricity.
Financial assistance, under the exemption from EU State Aid rules, to help SMEs acquire
and install energy efficient technologies by providing interest free loans
2008 Grants to stimulate the small-scale biomass suppliers fuel for use in heat and electricity
generation.
The household and buildings sector will need to achieve near-zero carbon emissions by
2050.
Salix Finance Ltd is a private company funded by government to establish energy
efficiency revolving loan schemes in the public sector.
Building
Year of
Introduction Last Revision
The 'Power shift' programme
Subsidy
Type of Instrument
Green Technology Challenge
Name of Instrument
UNITED KINGDOM
Green policies in the EU: A review
55
56
Voluntary
Incentives/Subsidies
RD&D
Education and Outreach;
Regulatory Instruments;
Tradable Permits
Regulatory Instruments;
Tradable Permits
Education and Outreach;
Financial; Policy Processes;
Regulatory Instruments;
Tradable Permits
Education and Outreach;
Climate Change Agreements (CCAs)
Environmental Transformation Fund
Research Councils Energy Programme (RCEP)
Renewable Energy Guarantee of Origin (REGO)
Multiple Renewable Energy Sources, Electricity
Multiple Renewable Energy Sources, Multi-sectoral Policy
Multiple Renewable Energy Sources, Multi-sectoral Policy
An obligation on energy suppliers to achieve targets for promoting reductions in carbon
emissions in the household sector.
2009 Multiple Renewable Energy Sources, Framework Policy; Bioenergy, Hydropower, Wind,
Solar Photovoltaic, Geothermal, Ocean
2001
2010
Education and Outreach,
Incentives/Subsidies
Education and Outreach
Education and Outreach; RD &
D, Policy Processes;
Regulatory Instruments;
Incentives/Subsidy, Public
Investment
Regulatory Instruments;
Policy Processes; Tradable
Permits
Energy Labelling for New Buildings
Low Carbon Transition Plan
2008
2010
2001 Superseded
2010
1997
1998 Superseded
2007
2009
Community Energy Savings Programme (CESP)
Climate Change Act
Object
Agreements with several British industries
2006 GHG trading scheme
To improve carbon management, help the transition toward a low-carbon economy, and
demonstrate strong international UK leadership.
Outlines how the British economy will be transformed to ensure the UK meets its
emission reduction targets, secures its energy supplies for, maximises economic
opportunities for jobs, skills and investment and ensuring policies are fair to protect the
most vulnerable in society.
To support partnerships of local councils, voluntary organisations and energy suppliers,
through communities offering free and discounted central heating, energy efficiency and
benefit checks.
Aims to improve energy efficiency and energy savings, reduce GHG emissions, and help
large organisations generate cost savings through reduced energy expenditure.
Covers five sectors: power and heavy industry; transport; homes and communities,
workplaces and jobs; farming, land and waste.
2000 Superseded Multiple Renewable Energy Sources, Multi-sectoral Policy
1992
2002
2008
2003
2004
2007
2001
2002 ended
2002
Year of
Introduction Last Revision
Education and Outreach;
Financial; Policy Processes
Market Transformation Programme, including Energy Labelling for Education and Outreach
Appliances
Carbon Reduction Commitment Energy Efficiency Scheme (CRC)
Regulatory Instruments,
Tradable Permits
Decent Homes
Regulatory Instruments
White Paper: A New Deal for Transport
Energy White Paper - Meeting the Challenge
Low Carbon Transition Plan
Renewables Obligation Plan
The Energy Savings Trust
Financial; Regulatory
Instruments
Incentives/Subsidies; Policy
Processes; Public Investment;
RD & D
Policy Processes
Trading system
UK Emissions Trading Scheme
Carbon Emissions Reduction Target (Energy Efficiency
Commitment 3)
Renewables Obligation Order
Trading system
Type of Instrument
GHG emissions trading scheme
Name of Instrument
UNITED KINGDOM
Public Investment, RD & D,
Policy Processes; Regulatory
Instruments; Tradable
Permits, Incentives/Subsidy
Climate Change Programme 2006
Source: OECD/IEA
RD & D
Research Councils Energy Programme (RCEP)
Anglo-Swedish Initiative for Greener Buildings
Market Transformation Programme - Partnership with China
Education and Outreach; RD &
D, Incentives/Subsidy,
Education and Outreach; RD &
D, Incentives/Subsidy, Policy
Processes, Voluntary
Agreement
Education and Outreach
Education and Outreach,
Regulatory Instruments;
Voluntary Agreement
Code for Sustainable Homes
Voluntary Agreement on the Phase Out of Incandescent Light
Bulbs
Low Carbon Buildings Programme
Education and Outreach
Type of Instrument
Act on CO2 advice line
Name of Instrument
2006
2004
2005
2006
2006 ended
2008
2007
2007
Year of
Introduction Last Revision
UNITED KINGDOM
Object
The Swedish and UK governments have launched a joint initiative to share best
practices in sustainable building.
Brings together within one framework all the Research Council activities on energy
research and training.
To tackle climate change, including several measures of energy efficiency
Participating in the Market Transformation Programme, the Chinese and UK
governments aim to harmonise and converge product performance, fostering
development of efficient products at low cost.
Provides the UK have access to a 'one-stop shop' service to help make their homes
greener.
Green policies in the EU: A review
57