The Council of the European Union is set to adopt an Implementing Decision authorising Belgium to apply a reduced rate of taxation to electricity directly supplied to vessels while berthed in its ports. The decision, scheduled for adoption as an 'A' item at a Council meeting on 8 July 2026, follows a proposal from the European Commission received on 11 June 2026. No objections were raised during discussions in the Working Party on Tax Questions (Indirect Taxation), and the Permanent Representatives Committee has been invited to recommend adoption. The Council is also asked to agree on publication of the Decision in the Official Journal of the European Union.
The measure, based on Article 19 of Directive 2003/96/EC, allows Belgium to apply a reduced tax rate to shore-side electricity supplied to vessels, including fishing boats and recreational craft, while at berth in Belgian ports. This is intended to incentivise the use of onshore power supply (OPS) instead of onboard auxiliary engines, which typically run on marine fuels and produce emissions. The reduced rate is expected to lower operational costs for ship operators and port authorities, encouraging a shift towards cleaner energy sources.
Ship operators and port authorities in Belgium stand to benefit from lower electricity costs, potentially reducing their overall fuel expenses and improving competitiveness. The measure also supports environmental goals by cutting air pollutants and greenhouse gas emissions from berthed vessels. However, electricity suppliers may face reduced tax revenue from this segment, and the policy could create competitive imbalances if neighbouring ports do not offer similar incentives. The decision does not set a specific reduced rate, leaving Belgium to determine the exact level within the framework of EU state aid rules. No further institutional follow-up is required beyond publication in the Official Journal.