Rulemaking in the EU on Environmental Taxation: Challenges and New Perspectives

The European Union, in its effort to address climate change and promote a sustainable economy, has increasingly relied on environmental taxation as a tool to influence individual and corporate behavior. Nevertheless, the EU’s competence in tax matters remains limited and largely constrained by the unanimity requirement laid down in Articles 113, 192(2)(a) and 194(3) of the Treaty on the Functioning of the European Union (TFEU). In this context, the possibility of adopting certain environmental fiscal measures through the ordinary legislative procedure represents a notable exception, made possible under specific conditions via Article 192 TFEU, which governs environmental protection. What is at stake is not just the need to overcome the States’ veto power, making it easier and quicker to approve legislation, but especially the need to increase the democratic accountability of the rulemaking procedure.