Legislation News September 2025

Flemish tax shift

As part of the Flemish Energy and Climate Plan, the Flemish Government published the framework for a tax shift from electricity to fossil fuels. Due to European legislation in Energy Taxation Directive, a tax shift is only possible on public service obligations and Energy Fund contribution, not on excises and taxes. To reduce the non-commodity cost of electricity, the Government plans

• to transfer the cost of CHP-Certificates from electricity to gas suppliers;
• to shift the contribution to the Energy Fund to non-residential, fossil fuel combustion installations;
• to charge the public service obligation relating to rational energy use, which is currently compensated by the Energy Fund, to the gas-DSO;
• to use the freed funds from the Energy Fund to purchase Green Energy Certificates instead of the electricity-DSO.

The intention is to approximate the existing degressivity of these costs. The necessary amendments will be drawn up during 2026 and will take effect in 2028.

Simplification of CBAM

The European Parliament has approved the changes to the Carbon Border Adjustment Mechanism. The changes are part of simplification efforts to reduce the administrative burden for SMEs and occasional importers. The amended law sets a new de minimis mass threshold whereby imports up to 50 tonnes per importer per year will not be subject to CBAM rules. The new threshold exempts the vast majority (90%) of importers − mainly small and medium-sized enterprises and individuals − who import only small quantities of CBAM goods. The climate ambition behind the mechanism remains unchanged, as 99% of total CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers will still be covered by the CBAM. The rules on imports still covered by the CBAM are also simplified, regarding for instance: the authorisation process, the calculation of emissions, verification rules and the financial liability of authorised CBAM declarants. The text still has to be officially endorsed by Council.