Airstrip One

The European Council finally agreed on an EU wide framework for energy taxation, one more step on the road to a carbon tax. The usual policies included support for emissions, exemptions for public transport and renewable energy production and the exemptions for air transport fuel will remain so long as existing international arrangements remain in place.

The reason for the directive was to reduce "distortions in competition".

reduce the distortions in competition that currently exist between energy products - only mineral oils have been subject to EU tax legislation up to now and not coal, natural gas or electricity;