Proposal for a COUNCIL IMPLEMENTING DECISION authorising Belgium to apply a reduced rate of taxation to electricity directly supplied to vessels at berth in a port in accordance with Article 19 of Directive 2003/96/EC
Date: 2026-06-11
Institutions: Directorate-General for Taxation and Customs Union, European Commission
Subjects: Belgium, electrical energy, electricity supply, excise duty, harbour installation, tax relief, vessel

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 11.6.2026  COM(2026) 275 final 2026/0142 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION authorising Belgium to apply a reduced rate of taxation to electricity directly supplied to vessels at berth in a port in accordance with Article 19 of Directive 2003/96/EC  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Taxation  of  energy  products  and  electricity  in  the  Union  is  governed  by  Council  Directive 
2003/96/EC of 27 October 2003 restructuring the Community framework for the taxation of 
energy products and electricity1 (the ‘Energy Taxation Directive’ or the ‘Directive’).  

Pursuant to Article 19(1) of the Directive, in addition to the provisions laid down in particular 
in  its  Articles  5,  15  and  17,  the  Council,  acting  unanimously  on  a  proposal  from  the 
Commission, may authorise any Member State to introduce further exemptions or reductions 
in the level of taxation for specific policy considerations.  

The  objective  of  this  proposal  is  to  allow  Belgium  to  apply  a  reduced  rate  of  electricity 
taxation to electricity directly supplied to vessels, other than private pleasure craft2, berthed in 
ports  (‘shore-side  electricity’)  for  six  years.  By  letter  of  8  January  2026,  the  Belgian 
authorities informed the Commission of their request for this authorisation. 

Belgium is seeking authorisation to apply a reduced tax rate of EUR 0.50/MWh, equal to the 
minimum  rate  of  taxation  for  electricity  for  business  use  as  laid  down  in  the  Directive,  to 
shore-side  supply  of  electricity  to  vessels  operating  exclusively  for  commercial  purposes  in 
Union sea and inland waters (including fishing).  

The  requested  period  of  validity  is  for  six  years  from  first  day  of  the  month  following  the 
month  in  which  the  Council  Implementing  Decision  authorising  Belgium  to  introduce  a 
reduced rate for shore-side electricity will be published in the Official Journal of the European 
Union.  This  is  within  the  maximum  period  allowed  by  Article  19  of  the  Energy  Taxation 
Directive.  

This reduction aims to promote the use of shore-side power as a sustainable alternative to on-
board electricity generation using fossil fuel-powered generators. Promoting the use of shore-
side  power  is  an  essential  step  in  making  shipping  and  Belgian  ports  greener.  Furthermore, 
greater use of shore-side power in future will have a positive impact on air quality in Belgian 
port areas, as required by the Ambient Air Quality Directive3. Belgium also expects that this 
measure  will  reduce  CO2  emissions,  noise  pollution  and nitrogen emissions in  line with  the 
Habitats Directive4 and the Water Framework Directive5.  

With  the  requested  measure  Belgium  seeks  to  create  a  proper  level  playing  field  for  the 
transition  from  bunker  fuel  (on-board  generators)  to  shore-side  power,  as  well  as  to  create 
sustainable  incentives.  The  measure  will  be  crucial  in  enabling  Belgium  to  meet  the  EU’s 

1 
2 

3 

4 

5 

OJ L 283, 31.10.2003, p. 51. 
The  term  ‘private  pleasure  craft’  is  defined  in  Article  14(1)(c),  second  subparagraph  of  Directive 
2003/96/EC. 
Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air 
quality and cleaner air for Europe. 
Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna 
and flora. 
Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a 
framework for Community action in the field of water policy. 

EN 

1 

  EN 

 
targets on the availability and use of shore-side power, as laid down in the FuelEU Maritime 
Regulation6 and the Alternative Fuels Infrastructure Regulation7. 

Belgium  intends  for  this  scheme  to  boost  fair  competition,  as  well  as  environmental  and 
energy  opportunities,  without  disrupting  the  proper  functioning  of  the  internal  market. 
Belgium  wants  to  incentivise  the  use  of  shore-side  electricity  which  is  considered  a  less 
polluting alternative to the generation of electricity on board vessels lying at berth in a port. 
As indicated in the request, the Belgian standard rate of electricity tax is  calculated through 
the use of the following consumption bands.  

Consumption band 

Excise 
(EUR/MWh) 

duty 

0 to 20 MWh 

20 to 50 MWh 

50 to 1 000 MWh 

1 000 to 25 000 MWh 

25 000 to 100 000 MWh 

100 000 MWh and above 

14.21 

12.09 

11.39 

10.69 

2.73 

0.50 

The tax advantage depends on the amounts to the difference between the current excise duty 
rates  applicable  to  electricity  for  business  use  and  the  reduced  rate  applicable  to  shore-side 
power of EUR 0.5 per MWh. This means that beneficiaries are charged at the applicable EU 
minimum tax rate for electricity under the Energy Taxation Directive of EUR 0.50 per MWh 
(as  specified  in  Article  10(1)  and  Table  C  of  Annex  I  to  the  Directive,  for  business  use). 
Belgium  exclusively  allows  the  tax  advantage  to  be  provided  as  a  reduced  excise  duty 
applicable  to  electricity  supplied  to  shore-side  power  installations.  Operators  of  shore-side 
power installations who would like the reduced rate to be applied to the electricity supplied to 
their  shore-side  power  installations  must  submit  a  declaration  to  their  electricity  supplier 
indicating which of their grid connections are intended exclusively for supplying electricity to 
shore-side power installations providing electricity to vessels other than private pleasure craft. 
The electricity supplier will then only apply the reduced rate of energy tax to the electricity 
supplied to those connections. 

The Belgian authorities have indicated that the measure will thus apply to operators of shore-
side power installations in Belgian ports. It is expected that those operators will pass on the 
financial  advantage  to  users  of  shore-side  power,  i.e.  owners  of  inland  navigation  and 
maritime vessels. 

Currently  no  shore-side  power  installations  are  available  for  maritime  shipping.  40  such 
installations are expected by 2030 and around 70 by 2035. Furthermore, vessels are expected 
to  call  at  the  available  installations  4 600  times  by  2030  and  approximately  7 400  times  by 
2035.  For  inland  navigation  there  are  currently  around  200  installations  supplying  some 
400 vessels. 

6 

7 

Regulation (EU) 2023/1805 of the European Parliament and of the  Council of 13 September 2023 on 
the use of renewable and low-carbon fuels in maritime transport, and amending Directive 2009/16/EC. 
Regulation (EU) 2023/1804 of the European Parliament and of the Council of 13 September 2023 on 
the deployment of alternative fuels infrastructure, and repealing Directive 2014/94/EU. 

EN 

2 

  EN 

 
As an estimation of the tax expenditures from the measure, the Belgian authorities calculated 
the estimated budgetary impact from 2027 to 2032: 

2027 

2028 

2029 

2030 

2031 

2032 

EUR 0.14 million 

EUR 0.41 million 

EUR 0.62 million 

EUR 1.00 million 

EUR 1.09 million 

EUR 1.12 million 

With  the  tax  reduction,  Belgium  wants  to  promote  the  use  of  shore-side  power  as  a 
sustainable alternative to on-board electricity generation using fossil fuel-powered generators. 
Encouraging  this  form  of  alternative  energy  is  in  line  with  efforts  to  promote  and  further 
support the sustainable transition, as also set out in the Clean Industrial Deal. 

• 

Consistency with existing policy provisions in the policy area 

Taxation of electricity is governed by the Energy Taxation Directive, in particular Article 10. 
Article 14(1)(c) provides for an obligatory tax exemption for electricity produced on board a 
craft.  Articles  5,  15  and  17  provide  for  the  possibility  for  Member  States  to  apply  tax 
differentiations, including exemptions and reductions, to certain uses of electricity. However, 
as such, these provisions do not provide for reduced taxation of shore-side electricity.  

Provisions under the Energy Taxation Directive  

Article 19(1), first subparagraph, of the Directive reads as follows:  

In addition to the provisions set out in the previous Articles, in particular in Articles 
5, 15 and 17, the Council, acting unanimously on a proposal from the Commission, 
may authorise any Member State to  introduce further exemptions or reductions for 
specific policy considerations.  

By  means  of  the  tax  reduction  in  question,  the  Belgian  authorities  pursue  the  objective  to 
promote an environmentally less harmful way for ships to satisfy their electricity needs while 
lying at berth in ports and thereby to improve local air quality and reduce noise.  

The Commission has already recommended the use of shore-side electricity as an alternative 
to  the  generation  of  electricity  on  board  the  vessels  at  berth  and  thereby  recognised  its 
environmental advantages8.  

Beneficiaries  are  charged  at  the  EU  minimum  tax  rate  for  electricity  under  the  Energy  Tax 
Directive  of  EUR  0.50/MWh  instead  of  the  higher  standard  rate  of  the  Belgian  electricity 
excise duty and this can therefore contribute to the stated policy objective. 

8 

Commission Recommendation 2006/339/EC of 8 May 2006 on the promotion of shore-side electricity 
for use by ships at berth in Community ports (OJ L 125, 12.5.2006). 

EN 

3 

  EN 

 
The  possibility  to  introduce  a  favourable  tax  treatment  to  shore-side  electricity  can  be 
envisaged  under  Article  19  of  the  Directive  since  its  purpose  is  to  allow  Member  States  to 
introduce further exemption or reductions for specific policy considerations.  

Belgium has  requested that  the measure  applies  for within the maximum  period  allowed by 
Article  19(2),  i.e.  6  years.  In  principle,  the  measure  must  remain  in  force  for  a  sufficiently 
long  period to  have a positive impact  on the investment  decisions for investments  in  shore-
side electricity facilities by port operators and in on-board equipment by ship operators.  

However,  the  derogation  should  not  undermine  future  developments  of  the  existing  legal 
framework  and  should  take  into  account  the  ongoing  revision  of  the  Energy  Taxation 
Directive  and  a  possible  adoption  by  the  Council  of  a  legal  act  based  on  a  Commission 
proposal for recast of the Energy Taxation Directive9.  

In particular, as part of the proposal recast of the Directive on the taxation of energy products 
and electricity, the Commission has, among others, made provision for all Member States to 
apply exemption, partial exemption or reduction in the level of taxation to electricity directly 
supplied to vessels berthed in ports, in order to set an incentive for its development and use.  

Under these circumstances, it appears appropriate to grant the authorisation for the period in 
question. 

State aid rules  

The reduced tax rate of EUR 0.50 per MWh envisaged by the Belgian authorities is equal to 
the  EU  minimum  level  of  taxation  for  electricity  for  business  use  pursuant  to  Article  10  of 
Directive 2003/96/EC.  

Article 44 of Commission Regulation 651/2014/EU stipulates the conditions under which aid 
in  the  form  of  reductions  in  environmental  taxes  under  Directive  2003/96/EC  can  be 
exempted from the State aid notification requirements.  

The  proposal  for  a  Council  implementing  decision  does  not  prejudge  the  Member  State’s 
obligation  to  ensure  compliance  with  State  aid  rules,  and  in  particular,  with  Commission 
Regulation  (EU) 651/2014  in  case of  categories  of block  exempted  aid,  within  the scope of 
that Regulation. The proposal for a Council implementing decision is also without prejudice 
to  the  Member  State’s  obligation  to  notify  the  aid  to  the  Commission  before  putting  it  into 
effect, should the new aid be not exempted from the notification requirement of Article 108(3) 
of the Treaty. 

• 

Consistency with other Union policies 

Environment and climate change policy  

The requested measure concerns mainly the EU's environment and climate change policy. To 
the extent that it will help to reduce the burning of bunker fuels on board the vessels in ports, 
the measure will contribute to the objective of improving local air quality and reducing noise. 

9 

COM/2021/563  final:  Proposal  for  a  Council  Directive  restructuring  the  Union  framework  for  the 
taxation of energy products and electricity (recast).  

EN 

4 

  EN 

 
The  Ambient  Air  Quality  Directive10  requires  Member  States  to  ensure  that  the  levels  of 
several  air  pollutants  are  kept  below  the  limit  values,  target  values  and  other  air  quality 
standards  established  in  the  Directive.  This  obligation  requires  Member  States  to  find 
solutions to problems such as ship emissions at berth in ports where this is relevant and it is 
conceivable that in ports where these problems exist the use of shore-side electricity will be 
further  encouraged  as  one  element  of  the  overall  air  quality  strategy.  The  use  of  shore-side 
electricity is also encouraged under Directive (EU) 2016/80211 regulating the sulphur content 
in marine fuels.  

By  applying  the  requested  measure,  Belgium  intends  to  incentivise  the  use  of  shore-side 
electricity as an environmentally friendlier alternative to the generation of electricity on board 
ships while at berth in a port. 

As  the  Belgian  authorities  stress,  the  use  of  shore-side  electricity  instead  of  on-board 
generators  can  result  in  beneficial  effects  for  the  environment.  Promoting  the  use  of  shore-
side  power  is  an  essential  step  in  making  shipping  and  Belgian  ports  greener.  Furthermore, 
greater use of shore-side power in future will have a positive impact on air quality in Belgian 
port areas, through the reduction of airborne pollutants, particulate matter and soot. Belgium 
also  expects  that  this  measure  will  reduce  noise  pollution  and  nitrogen  emissions.  The 
measure is also likely to lead to  a reduction of CO2 emissions. This is due to the electricity 
mix  from  the  onshore  grid  in  Belgium  being  less  carbon  intensive  than  the  electricity 
produced on board by burning bunker fuels, due to higher energy system efficiency and the 
difference in input fuels used. 

This  measure  is  compatible  with  Commission  Recommendation on  the  promotion  of  shore-
side  electricity  for  use  by  ships  at  berth  in  Community  ports12,  specifying  that  lowering 
taxation  on  electricity  supplied  to  ships  at  berth  increases  the  attractiveness  of  shore-side 
electricity. 

Energy policy  

The measure is in line with the Alternative Fuel Infrastructure Regulation13, which addresses 
the issue of installing shore-side electricity supply facilities in ports where there is demand for 
such facilities and the costs are not disproportionate to the benefits, including environmental 
benefits. A similar measure has also been assessed as contributing to the achievement of the 
objectives of Union policies and legislation aiming to  reduce the environmental footprint of 
maritime  transport  and  to  the  development  of  certain  economic  activities  under  Article 
107(3)(c) of TFEU14.  

It has to be recalled at this point that one important reason for the unfavourable competitive 
position of shore-side electricity lies in the fact that electricity produced on board the vessels 

10 

11 

12 

13 

14 

Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air 
quality and cleaner air for Europe (OJ L 152, 11.6.2008, p 1). 
Directive (EU) 2016/802 of the European Parliament and of the Council of 11 May 2016 relating to a 
reduction in the sulphur content of certain liquid fuels (OJ L 132, 21.5.2016, p. 58–78). 
Commission  Recommendation  of  8  May  2006  on  the  promotion  of  shore-side  electricity  for  use  by 
ships at berth in Community ports. 
Regulation (EU) 2023/1804 of the European Parliament and of the Council of 13 September 2023 on 
the deployment of alternative fuels infrastructure, and repealing Directive 2014/94/EU. 
Commission decision C(2024) 3934 final of 17.06.2024 in State aid case SA.105117 (OJ C/2024/5376, 
03.09.2024). 

EN 

5 

  EN 

 
while in maritime ports currently enjoys a full tax exemption: not only is the bunker fuel burnt 
for generating the electricity exempt from taxation, which corresponds to the normal situation 
under Article 14(1)(a) of the Energy Taxation Directive, but also the electricity produced on 
board the vessels is itself exempt.15 Although the latter exemption could as such be considered 
difficult  to  reconcile  with  the  environmental  objectives  of  the  Union,  its  origin  stems  from 
considerations of practicability. This is due to the tact that taxation of the electricity produced 
on  board  would  require  a  declaration  by  the  ship’s  owner  or  operator  of  the  amount  of 
electricity produced and consumed. The declaration would furthermore have to determine the 
share of the electricity consumed in the territorial waters of the specific Member State where 
the tax is due. It would create an excessive administrative burden for ship-owners to have to 
make  such  declarations  for  every  Member  State  whose  territorial  waters  are  passed. 
Analogous  considerations  apply  to  inland  navigation  and  to  the  optional  tax  treatment  in 
accordance with Article 15(1)(f) of the Directive. Given the exemption of the fossil route of 
electricity  generation  on  board  ships,  it  cannot  be  justified  to  penalize  the  less-polluting 
alternative of shore-side electricity and would merit allowance of Belgium to apply a reduced 
rate of taxation.  

Transport policy  

The measure is in line with the goals of the Fuel EU Maritime Regulation16. This Regulation 
states  that  from  2030  onwards  vessels  classified  as  cruise  ships,  ferries  and  container  ships 
above 5,000 gross tonnage are required to use Onshore Power Supply systems, except in cases 
where zero-emission technology is available to them. The broader application of the reduced 
rate,  namely  for  inland  waterway  navigation  and  lower  gross  tonnage  vessels,  would  still 
justify the measure. As the Belgian authorities have stressed, authorisation will be crucial in 
enabling  Belgium  to  meet  the  abovementioned  EU’s  targets  on  the  availability  and  use  of 
shore-side power. 

Internal market and fair competition  

From the point of view of the internal market and fair competition the measure only reduces 
the existing tax distortion between two competing sources of electricity for boats at berth, i.e. 
on board generation and shore-side electricity, caused by the tax exemption for bunker fuels.  

The Belgian authorities observe that at this stage, the possibility of the proposed tax reduction 
favoring electricity suppliers and, indirectly, owners of vessels used for commercial shipping, 
cannot be ruled out. However, access to shore-side electricity will be available for the ships 
concerned  regardless  of  their  flag  without  leading  to  more  advantageous  tax  treatment  of 
national economic operators over their competitors from other EU Member States.  

Concerning competition between ports, it can be expected that any potential impact on trade 
between  Member  States,  which  could  result  if  vessels  alter  their  routes  because  of  the 
possibility  to  consume  shore-side  electricity  at  a  reduced  tax  rate,  will  be  negligible.  In  a 
situation where, as stated above, the use of shore-side electricity is, at least in the short term, 
unlikely to become more economic than on-board generation in spite of the tax reduction, this 
tax  reduction  for  shore-side  electricity  is  also  unlikely  to  significantly  distort  competition 

15 
16 

Article 14(1)(c) of Directive 2003/96/EC. 
Regulation (EU) 2023/1805 of the European Parliament and of the Council of 13 September 2023 on 
the use of renewable and low-carbon fuels in maritime transport, and amending Directive 2009/16/EC. 

EN 

6 

  EN 

 
between ports by inducing vessels to change their itinerary according to the availability of this 
option. 

The  Belgian  authorities  argue  that  other  factors  (such  as  the  type  of  ship  and  cargo,  the 
hinterland  connections  available  or  other  economic  factors)  play  a  role  in  the  selection  of 
ports, so that the mere availability of shore-side electricity does not seem to be decisive.  

The timeframe for which it is proposed to grant the authorization to apply a reduced tax rate, 
unless  there  will  be  significant  changes  in  the  current  framework  and  situation,  makes  it 
unlikely that the analysis conducted in the preceding paragraphs will change before the date 
of expiry of the measure.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

Article 19 of Council Directive 2003/96/EC. 

• 

Subsidiarity (for non-exclusive competence)  

The  field  of  indirect  taxation  covered  by  Article  113  of  TFEU  is  not  in  itself  within  the 
exclusive competence of the European Union within the meaning of Article 3 of TFEU.  

However,  pursuant  to  Article  19  of  Directive  2003/96/EC,  the  Council  has  been  granted  an 
exclusive competence, as a matter of secondary law, to authorise a Member State to introduce 
further exemptions or reductions within the meaning of that provision. Member States cannot 
therefore substitute themselves for the Council. As a result, the principle of subsidiarity is not 
applicable  to  the  present  implementing  decision.  In  any  event,  since  this  act  is  not  a  draft 
legislative act, it should not be transmitted to national Parliaments pursuant to Protocol No 2 
to the Treaties for review of compliance with the subsidiarity principle.  

• 

Proportionality 

The proposal respects the principle of proportionality. The tax reduction does not exceed what 
is necessary to attain the objective in question. 

• 

Choice of the instrument 

The  instrument  proposed  is  a  Council  implementing  decision.  Article  19  of  Directive 
2003/96/EC makes provision for this type of measure only. 

3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

The measure does not require the evaluation of existing legislation. 

EN 

7 

  EN 

 
 
• 

Stakeholder consultations 

This proposal is based on a request made by Belgium and concerns only this Member State. 
Therefore, no stakeholder consultation has been conducted. 

• 

Collection and use of expertise 

There was no need for external expertise. 

• 

Impact assessment 

This proposal concerns an authorisation for an individual Member State upon its own request 
and does not require an impact assessment.  

However,  as  mentioned  before,  the  information  provided  by  Belgium  suggests  that  the 
measure will have a limited impact on tax revenues and the tax rate for shore-side electricity 
will  still  be  above  the  minimum  level  of  taxation  set  in  the  Energy  Taxation  Directive. 
Belgium  expects  the  measure  to  have  a  positive  impact  on  the  achievement  of  its 
environmental  goals.  Furthermore,  greater  use  of  shore-side  power  in  future  will  have  a 
positive impact on air quality in Belgian port areas, as required by  the Ambient Air Quality 
Directive17.  Belgium  also  expects  that  this  measure  will  reduce  CO2  emissions,  noise 
pollution  and  nitrogen  emissions  in  line  with  the  Habitats  Directive18  and  the  Water 
Framework Directive19. 

In  more  detail,  as  an  estimation  of  the  tax  expenditures  from  the  measure,  according  to  the 
Belgian  authorities,  the  following  expenses  are  expected  during  the  application  of  the 
measure: 

2027 

2028 

2029 

2030 

2031 

2032 

EUR 0.14 million 

EUR 0.41 million 

EUR 0.62 million 

EUR 1.00 million 

EUR 1.09 million 

EUR 1.12 million 

• 

Regulatory fitness and simplification 

The  measure  does  not  provide  for  a  simplification.  It  is  the  result  of  the  request  made  by 
Belgium and concerns only this Member State. 

17 

18 

19 

Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air 
quality and cleaner air for Europe. 
Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna 
and flora. 
Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a 
framework for Community action in the field of water policy. 

EN 

8 

  EN 

 
 
• 

Fundamental rights 

The measure has no bearing on fundamental rights. 

4. 

BUDGETARY IMPLICATIONS 

The  measure  does  not  impose  any  financial  or  administrative  burden  on  the  Union.  The 
proposal therefore has no impact on the budget of the Union. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

An  implementation  plan  is  not  necessary.  This  proposal  concerns  an  authorisation  for  a  tax 
reduction  for  an  individual  Member  State  upon  its  own  request.  It  is  provided  for  a  limited 
period of six years. The tax rate that will apply will be equal to the minimum level of taxation 
set by the Energy Taxation Directive. The measure can be evaluated in case of a request for a 
renewal after the validity period has expired. 

• 

Explanatory documents (for directives) 

The proposal does not require explanatory documents on the transposition. 

• 

Detailed explanation of the specific provisions of the proposal 

Article 1 stipulates that Belgium will be allowed to apply a reduced rate of electricity taxation 
to electricity directly supplied to vessels, other than private pleasure craft, berthed in Belgium 
ports (‘shore-side electricity’). The tax rate must not be less than EUR 0.50 per MWh, i.e. the 
minimum level of taxation for electricity for business use set by the Directive. It will not be 
possible to supply electricity at a reduced rate to private pleasure craft as defined in Article 
14(1)(c), second subparagraph of Energy Taxation Directive.  

Article 2 stipulates that the authorisation requested is granted with effect from the first day of 
the  month  following  the  month  in  which  the  Council  Implementing  Decision  authorising 
Belgium  to  introduce  a  reduced  rate  for  shore-side  electricity  is  published  in  the  Official 
Journal of the European Union, within the maximum period allowed by the Directive of six 
years, as requested by Belgium.  

EN 

9 

  EN 

2026/0142 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

authorising Belgium to apply a reduced rate of taxation to electricity directly supplied to 
vessels at berth in a port in accordance with Article 19 of Directive 2003/96/EC 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty on the Functioning of the European Union,  

Having  regard  to  Council  Directive  2003/96/EC  of  27  October  2003  restructuring  the 
Community framework for the taxation of energy products and electricity1, and in particular 
Article 19(1), first paragraph, thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

By letter of 8 January 2026, Belgium sought authorisation to apply a reduced rate of 
taxation  to  electricity  directly  supplied  to  vessels  berthed  in  a  port  (‘shore-side 
electricity’),  pursuant to Article 19 of Directive 2003/96/EC. 

Through the reduced tax rate that it intends to apply, Belgium aims to promote the use 
of  shore-side  electricity.  The  use  of  such  electricity  is  considered  to  be  an 
environmentally less harmful way of satisfying the electricity needs of vessels berthed 
in a port than the burning of bunker fuels by those vessels. 

Insofar  as  the  use  of  shore-side  electricity  avoids  emissions  of  air  pollutants 
originating from the burning of bunker fuels by vessels at berth in a port, it improves 
local  air  quality  in  port  areas.  Accounting  for  the  carbon  intensity  of  the  electricity 
generation in Belgium, the use of shore-side electricity instead of electricity generated 
by  burning  bunker  fuels  is  furthermore  expected  to  reduce  CO2  emissions,  other  air 
pollutants  and  noise.  The  application  of  the  reduced  rate  of  taxation  to  shore-side 
electricity is therefore expected to contribute to the environmental, health and climate 
policy objectives of the Union. 

Allowing Belgium to apply a reduced rate of taxation to shore-side electricity does not 
go  beyond  what  is  necessary  to  increase  the  use  of  such  electricity,  since  on-board 
generation  of  electricity  will  remain  the  more  competitive  alternative  in  most  cases. 
For  the  same  reason,  and  because  of  the  current  relatively  low  degree  of  market 
penetration of the relevant technology, the application of that reduced rate of taxation 
is  unlikely  to  lead  to  significant  distortions  in  competition  during  its  period  of 
application  and  will  therefore  not  negatively  affect  the  proper  functioning  of  the 
internal market.  

(5) 

In accordance with Article 19(2) of Directive 2003/96/EC, each authorisation granted 
under Article 19(1) of that Directive is to be strictly limited in time. In order to ensure 
that  the  authorisation  period  is  sufficiently  long  so  as  not  to  discourage  relevant 
economic operators from making the necessary investments, it is appropriate to grant 

1 

OJ L 283, 31.10.2003, p. 51. 

EN 

10 

  EN 

 
the authorisation requested for a six -year period. However, that authorisation should 
cease  to  apply  upon  the  date  of  application  of  any  general  provisions  on  tax 
advantages  for  shore-side  electricity  that  would  be  adopted  by  the  Council  under 
Article  113  or  any  other  relevant  provision  of  the  Treaty,  should  such  provisions 
become applicable during the period of authorisation. 

(6) 

This  Decision  is  without  prejudice  to  the  application  of  Union  rules  regarding  State 
aid, 

HAS ADOPTED THIS DECISION:  

Article 1 

Belgium  is  authorised  to  apply  a  reduced  rate  of  taxation  to  electricity  directly  supplied  to 
vessels, other than private pleasure craft, at berth in a port (‘shore-side electricity’), provided 
that  the  minimum  levels  of  taxation  referred  to  in  Article  10  of  Directive  2003/96/EC  are 
respected. 

This Decision shall apply for a period of six years from the first day of the month following 
that of its publication in the Official Journal of the European Union. 

Article 2 

However,  should  the  Council,  acting  on  the  basis  of  Article  113  or  any  other  relevant 
provision  of  the  Treaty  on  the  Functioning  of  the  European  Union,  adopt  any  general 
provisions  on  tax  advantages  for  shore-side  electricity,  which  become  applicable  during  the 
period set out in the first paragraph of this Article, this Decision shall cease to apply on when 
those general provisions become applicable. 

This Decision is addressed to the Kingdom of Belgium. 

Done at Brussels, 

Article 3 

For the Council 
The President 

EN 

11 

  EN