Proposals put forward by the European Commission this week to reduce Europe's energy bill call for tax measures.

The Commission is proposing:

• A Green Paper on indirect taxation and a review of the Energy Tax Directive to facilitate a more targeted and coherent use of energy taxation.
• Using tax credits and other tax breaks as incentives for enterprise to promote the increased production of certified energy-efficient appliances and equipment on the one hand, and for consumers on the other.
• The early adoption of the proposals to relate vehicle taxation to CO2 performance.