& Events

The flaws of France’s ecological tax

Nov 9, 2018 | News

(09 November 2018) – The many exceptions to the French carbon tax do not make it easier for people – and drivers – to accept green taxation.

© CC0 Public Domain

Adopted in 2013, the “Contribution Climat Énergie” (CCE) has increased from year to year, putting pressure on fuel prices. In 2019, a tonne of CO2 will cost €55 in France, which is reflected by around an additional 10 cents per litre of petrol or diesel.

The €55 cost of a tonne of CO2 in France compares with the European price of €17 per tonne and does not perform the same services. The French CCE affects both private individuals and businesses, generating almost €7 billion a year through the prices of all fuels, including fuel oil, gas, petroleum, diesel and coal.

However, many industrial sectors have been exempted, including agriculture, all of the industry sectors subject to emissions allowances, road transport and air and maritime transport.

Moreover, these tax inequalities are a problem, according to ecological tax experts. The tax disproportionately hits those on the lowest incomes, who receive an ‘energy cheque’ of €150 if they do not pay any tax.

There are few carbon taxes elsewhere in Europe. Sweden established one 20 years ago which now totals €120 per tonne of CO2 emitted. In the United Kingdom, a carbon price floor was implemented with the price of €20.41 per tonne. (EurActiv)

More information