The European Commission has published a proposal for a revision of the existing Energy Taxation Directive. Under the amendments, an energy product would be taxed at a combination of its energy content and carbon dioxide content. By introducing a carbon element, the Commission hope to bring energy taxation in line with the EU’s commitments on climate change. Although the proposals would have broadly the same effect on business across the EU, it has been reported in the press that the UK is seeking to block the proposals. It is difficult to see how they will interact with the UK Government’s plans for the carbon price support mechanism which will only impact on UK business without leading to double taxation on carbon.