The Clean Industry Plan and Cuts to the Green Deal

The European Commission has just proposed three plans to decarbonise the energy industry, lower the price of energy and improve the competitiveness of companies, reforms that have satisfied employers but worried environmental defenders, who fear a deep erosion of the Green Deal. Brussels presented its long-awaited plans for clean industry and affordable energy at the same time as its ‘omnibus’ package, aimed at simplifying European regulation and reducing the administrative burden for companies, derived in many cases from measures to combat the climate crisis.

How does it affect you?

• The proposal with the most universal impact is the call on member countries to apply the minimum VAT rate of 5% to electricity.
• In Spain, that tax was back to 21% last January, after being lowered in the wake of the energy crisis, and consumers have recently complained about higher bills. At the European level, the problem of energy poverty is serious: it affects more than 46 million people, according to Brussels.
• Although the Commission’s recommendation is a mere recommendation, Brussels is also calling for a change in European legislation that, if approved, would be mandatory: a reform of energy taxation that has been blocked for years by the refusal of several countries to raise taxes on kerosene on aircraft.
• If you have a small or medium-sized company and the Commission’s proposal is approved, you will no longer have to submit reports to Brussels on your sustainability impact.
• If you provide goods or services to larger companies, they will no longer be able to ask you for as much information about the potential social or environmental effect of the supplies you provide to them.
• If you work in the energy or clean technology sector, the Commission has promised to mobilise new aid and grants, although it could still take years to materialise.

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