Considerations on COM(2024)216 -

Please note

This page contains a limited version of this dossier in the EU Monitor.

 
dossier COM(2024)216 - .
document COM(2024)216
date May 29, 2024
 
(1) By letter of 11 April 2022, France sought authorisation to apply a reduced rate of taxation to electricity directly supplied to stationary aircraft at aerodromes open to public air traffic, pursuant to Article 19 of Directive 2003/96/EC. The French authorities provided additional information on 25 October 2022 and 7 August 2023. Further information was sent by the French authorities on 30 October 2023, 7 November 2023, 27 December 2023 and 18 April 2024. The authorisation should apply until 31 December 2027.

(2) Through the reduced rates of taxation that it intends to apply, France’s objective is to promote further the deployment and use of shore-side electricity. The use of such electricity is considered to be an environmentally less harmful way to meet the electricity needs of stationary aircraft at aerodromes open to public air traffic than the use of fossil fuels.

(3) In so far as the use of shore-side electricity reduces the emission of greenhouse gases and other air pollution produced by internal power generation on aircraft, it contributes to improving air quality and reducing noise pollution. The measure is therefore expected to contribute to the environmental, health and climate policy objectives of the European Union.

(4) Allowing France to apply reduced rates of taxation to shore-side electricity does not go beyond what is necessary, since on-board electricity production will remain the more competitive alternative in most cases. For the same reason, and because of the technology’s current level of market penetration, which is relatively low, the measure is unlikely to lead to significant distortions of competition during its period of application, and will thus not negatively affect the proper functioning of the internal market.

(5) France should therefore be authorised to apply the reduced rates of taxation as requested, with effect from 1 January 2024.

(6) Pursuant to Article 19(2) of Directive 2003/96/EC, each authorisation granted under that provision is to be strictly limited in time. However, in order not to undermine future general developments of the existing legal framework, it is appropriate to provide that, should the Council, acting on the basis of Article 113 or any other relevant provision of the Treaty on the Functioning of the European Union, introduce a modified general system for the taxation of energy products and electricity to which this authorisation would not be adapted, this authorisation should cease to apply.

(7) This Decision is without prejudice to the application of Union rules regarding State aid.