MADRID: The International Energy Agency (IEA) said in a new report that Spain needs to reform energy taxation and introduce revenue-neutral fiscal incentives to encourage greenhouse gas reductions and energy efficiency improvements.
The report, Energy Policies of IEA Countries: Spain – 2015 Review, stressed that although Spain’s greenhouse gas emissions from energy use have been declining, they need to be reduced further. Current policies and measures are not enough to meet the target of reducing greenhouse gas emissions by 10 percent from 2005 to 2020 in the non-emissions trading scheme sector, it said.
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Raising tax rates in a revenue-neutral way can encourage more efficient oil use, thus delivering environmental and energy security benefits, the report said. In particular, it said there is scope to raise fuel tax rates, which are relatively low by international comparison.
