Cathal Crowe (Clare, Fianna Fail)
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287. To ask the Minister for Finance his views on the proposed revision of the Energy Taxation Directive; his future plans on the issue in the context of Ireland’s upcoming Presidency of the EU Council; and if he will make a statement on the matter. [66266/25]

Simon Harris (Wicklow, Fine Gael)
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The Energy Tax Directive (Directive 2003/96/EC or ETD) is the legislative framework for taxation of energy products used for heating and propellant purposes within the EU. The ETD was first implemented in 2003 with the primary aim of harmonising tax rates across the EU and ensuring the proper functioning of the Internal Market. The Directive prescribes minimum rates of tax for fuels and fuels uses and also provides for reliefs and exemptions for certain fuel uses.

As part of the Fit for 55 package, the EU Commission published a proposal to revise the ETD in 2021 with the aim of providing an adapted framework, which contributes to reaching EU 2030 targets and achieving climate neutrality by 2050 in the context of the European Green Deal; providing a framework that preserves and improves the EU internal market by updating the scope and the structure of rates as well as by rationalising the use of tax exemptions and reductions by Member States; and preserving the capacity to generate revenues for the budgets of the Member States.

In order to secure an agreement it is important that the ETD recast proposal strikes a balance between climate ambition, Member State specificities and EU competitiveness, and reaching a compromise acceptable to all Member States has proved challenging.

At this stage, it is too early to identify specific files, including the ETD, that will form part of Ireland’s Presidency of the ECOFIN Council. Our priorities will be announced much closer to our Presidency commencing on 1 July next year in order to capture the state of play on specific files and progress made under preceding presidencies – namely the current Danish and incoming Cypriot presidencies.