The effect of the current financial and economic crisis has put energy pricing under the spotlight because of the impact on household energy costs in the context of austerity and on industrial competitiveness of high energy prices. The importance of Market Based Instruments (MBI) is that they must both advance the transition to a resource-efficient and low carbon economy and support economic recovery. Environmental and climate policies should not be seen as a burden in the recovery from the fiscal and economic and social crisis, but rather as a part of the solution. The Committee urges the Commission to make environmental fiscal reform an integral and permanent part of the European Semester.