The Chancellor of the Exchequer (Mr George Osborne)

Depending on progress at officials’ level, Finance Ministers will hold an orientation debate on the ETD. The Commission published its proposal on this issue in April. Its stated aim is to bring EU rules on the taxation of energy products further into line with the EU’s energy and climate change objectives. The proposal would require member states to tax energy products by taking into account both CO 2 emissions and energy content. The Government believe that revision of the ETD should focus on reviewing EU minimum levels of taxation, and do not support a mandatory EU-level carbon tax. In line with the principle of subsidiarity, member states should also retain the absolute right to set national duty rates on different types of energy products, as long as these are above EU-wide minimum rates of taxation. The presidency has drafted “orientations” to guide future work on the file, which are in line with the Government’s priorities in this area.

ECOFIN will discuss the outcomes of the European Council, where leaders discussed the immediate challenges posed by the financial crisis, and agreed on measures to secure sustainable and job-creating growth. They also set the EU’s position for the G20 summit, giving top priority to maintaining financial stability and restoring growth, and discussed preparations for the Durban conference on climate change.

Preparation of the 17th Conference of Parties (COP-17) of the United Nations Framework Convention on Climate Change (UNFCCC) in Durban , South Africa

ECOFIN will discuss draft climate finance conclusions which endorse the EU’s “fast start finance report” setting out the EU’s contributions in 2011. The conclusions will also consider the report to the G20 on long-term sources of finance, which was led by the World Bank. The Government support the further development of the EU’s position in advance of the UNFCCC negotiations in Durban.

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