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Taxes on carbon and energy remain an important instrument to curb greenhouse gas emissions, in particular for those emitters and installa- tions that are not covered by emissions trading for CO2. Even emitters under the European Union’s emissions trading system are likely to con- tinue to face taxes on their use of energy for reasons indicated in the EU’s Energy Taxation Directive and relating to the functioning of the internal market as well as to concerns for security of energy supply. | CARBON ENERGY Lessons from Europe EDITED BY MIKAEL SKOU ANDERSEN PAUL EKINS OXFORD Ik Carbon-Energy Taxation This page intentionally left .