Blowing in the Wind
I've been following the European discussion on Windfall tax on energy companies on and off for a while. The discussion itself is on and off at times, and very bouncy at others. Googling for "windfall tax EU" brings funny results. First link says "EU backs Italian oil industry windfall tax proposal." The following link says "EU ministers reject proposal for windfall tax on oil firms". The topic was hot last summer when oil prices were high, but now cooled down with the barrel price.
I would like to see the EU continue investment support for renewable energy sources like solar and wind energy. EU approved their new environmental policy recently, and it was reported to be either a) a victory for the environmentalists b) a victory for brick&mortar industry c) none of the above. It has been very difficult to draw conclusions recently on where Europe is heading with its energy politics.
Energy is a tricky topic because, on one hand you want to support new technologies that would not consume raw natural resources. On the other hand, do you want to impose a windfall tax on these same companies? According to the European Climate Change Programme, when a non-ecological oil and coal companies produce energy, they need to pay the Co2 emission fee. The companies add this fee into their prices, so the price of energy rises. When energy is traded in the market, also the "good" renewable energy companies gain profits that they wouldn't otherwise get. These are the windfall profits. Then why impose windfall tax at all? Well, because it's a good way to collect money from the "bad" energy industry and direct it to the "good" energy industry.
I tried to navigate for answers in europa.eu pages but couldn't find anything meaningful. Their environment pages haven't been updated since March 2008. The "activities" portal has a page for environment that contains 35 links. I click on one, the EU council's environment pages. I land on a page that says "no documents currently available". Then I go to press pages and search for recent press releases on environment. It brings four releases, none of which are on the environment programme. Then I do a search on the general press release page, and get a list of press relases that are shown, not by their titles, but by a code number (0.8919 for example) and an issuer - all issued by Rapid - Press Releases - EUROPA. How's that supposed to help me?
As a tax payer I demand to understand what is going on with enegry investment and tax plans in EU! I am waiting for responses.
I would like to see the EU continue investment support for renewable energy sources like solar and wind energy. EU approved their new environmental policy recently, and it was reported to be either a) a victory for the environmentalists b) a victory for brick&mortar industry c) none of the above. It has been very difficult to draw conclusions recently on where Europe is heading with its energy politics.
Energy is a tricky topic because, on one hand you want to support new technologies that would not consume raw natural resources. On the other hand, do you want to impose a windfall tax on these same companies? According to the European Climate Change Programme, when a non-ecological oil and coal companies produce energy, they need to pay the Co2 emission fee. The companies add this fee into their prices, so the price of energy rises. When energy is traded in the market, also the "good" renewable energy companies gain profits that they wouldn't otherwise get. These are the windfall profits. Then why impose windfall tax at all? Well, because it's a good way to collect money from the "bad" energy industry and direct it to the "good" energy industry.
I tried to navigate for answers in europa.eu pages but couldn't find anything meaningful. Their environment pages haven't been updated since March 2008. The "activities" portal has a page for environment that contains 35 links. I click on one, the EU council's environment pages. I land on a page that says "no documents currently available". Then I go to press pages and search for recent press releases on environment. It brings four releases, none of which are on the environment programme. Then I do a search on the general press release page, and get a list of press relases that are shown, not by their titles, but by a code number (0.8919 for example) and an issuer - all issued by Rapid - Press Releases - EUROPA. How's that supposed to help me?
As a tax payer I demand to understand what is going on with enegry investment and tax plans in EU! I am waiting for responses.
Hello everybody. Jack here
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