In 2003, the Council Directive 2003/96/EC was adopted, restructuring the Community framework for the taxation of energy products and electricity. The directive was necessary in order for the EU’s single market to function properly. The directive set out minimum tax levels on all types of energy, ranging from transport and heating fuels to electricity. Taxes are currently based on the fuel volume which, however, no longer corresponds to European aim to reach climate neutrality by 2050.
