The need that has arisen for windfall profit taxes in the European energy market, both in electricity production and the petroleum sector, has generated discussion for a wider tax solution in the energy sector.

Energy tax revisions for an updated European formula to benefit the renewable energy sector will be discussed by EU finance ministers in December, according to an announcement by the Czech Republic, currently holding the rotating EU presidency.

Earlier this year, European Commissioner for Energy Kadri Simson admitted an older directive, delivered 15 years ago, is not helping the EU achieve energy and climate goals.

The objective is to impose higher taxes on fossil fuels and lower taxes on the RES sector in order to create incentives for investment in green energy. Climate criteria will be used to establish tax rates, resulting in highest tax rates for conventional fuels.