CO2 taxation is now well established across the European Union.
20 EU member states currently apply some form of CO2 tax to the registration and/or ownership of passenger cars, up from 17 in 2010.
The countries are: Austria, Belgium, Cyprus, Germany, Denmark, Finland, France, Greece, Croatia, Ireland, Latvia, Luxembourg, Malta, the Netherlands, Portugal, Romania, Slovenia, Spain, Sweden and the United Kingdom.
The European automobile industry welcomes this trend towards CO2-related car taxation. However, it regrets the lack of uniformity in the implementation of these taxes. European auto makers therefore support taxation for passenger cars that is:
- exclusively based on CO2 emissions;
- technologically neutral;
- linear; and
- budget neutral.