Including Consumption in Emissions Trading
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Including Consumption in Emissions Trading

Economic and Legal Considerations

Manuel W. Haussner

This timely book addresses the need for further measures to reduce greenhouse gas emissions in the European Union, arguing that the EU Emissions Trading Scheme does not offer sufficient incentives for the carbon-intensive materials sector. It highlights the challenge that emissions from industries such as iron and steel, cement and aluminium, amongst others, pose to the EU’s commitment to significantly cut emissions by 2030.
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Chapter 5: Article 192(1) TFEU vs Article 192(2) TFEU

Manuel W. Haussner

Abstract

Chapter 4 identifies the decision-making procedure and the voting pattern in the Council for consumption-based charged as Article 192 TFEU provides for two legislative producers: Environmental policy can either be adopted according to the ordinary legislative procedure and majority voting in the Council (Article 192(1) TFEU). Besides, environmental measures can be adopted with a special legislative procedure and unanimity voting in the Council for ‘provisions primarily of a fiscal nature’ (Article 192(2)(a) TFEU). The following argues that the inclusion of consumption into emissions trading through a consumption-based charge does not qualify as ‘primarily fiscal in nature’. Consequently, it can be implemented with majority voting in the Council under Article 192(1) TFEU.

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