ABSTRACT
Environmental policies in Europe have progressively shifted the way in which resources are allocated towards more sustainable practices. The European Green Deal (EGD) aims to boost changes in this area to achieve EU climate targets. The EGD touches upon an uncomfortable topic on EU politics: taxation and fiscal systems. This chapter analyses if and how fiscal policies and instruments in EU member states have been used to direct resources towards the transition to greener economies. It particularly assesses the use of environmental taxes. This chapter contributes to answering the questions of which governance mechanisms EU actors are using to induce change, and which is the dominant logic to induce said change (consequentialism or appropriateness). The purpose of this chapter is to assess the situation of the EU with regard to green fiscal policies, place it in relation to the EGD strategy, and identify possible barriers for a successful progression towards a more sustainable future. In this regard, this chapter answers the question about the drivers and barriers of change in EU fiscal systems.
