France - carbon tax

France considers taxing carbon emmissions

Article published on the 2009-07-29 Latest update 2009-07-29 11:51 TU

France's Ecology Minister Jean-Louis Borloo (C) pictured with former French prime minister Michel Rocard (L) and Junnior Minister for Ecology Chantal Jouanno (R) as they present proposals for a carbon tax to the media in Paris on 28 July 2009
(Photo: Reuters/Benoit Tessier)

A report commissioned by the French government has recommended that a tax on carbon emissions should be introduced to help fight global warming.

In its report, an expert group led by former Socialist Prime Minister Michel Rocard recommends that the tax be paid by “everybody without exception and exemption”.

According to business daily Les Echos and AFP, the proposed taxes on oil, gas and coal would see France charge 32 euros for every tonne of carbon dioxide emitted in 2010. This would rise to 100 euros per tonne by 2030.

If it is introduced, the tax would add 0.077 euros to the cost of one litre of unleaded fuel and 0.085 euros to a litre of diesel. Household gas and fuel prices would rise by between 60 and 170 euros per year, according to the French agency for development and energy control.

Trade unions, consumers’ associations and the rural-based Hunting, Fishing and Nature Party have already objected to any new taxes on homeowners.

"The government will raise several billion euros from consumers, give them back a part and keep a substantial part for its general budget, or to lower the business tax," the UFC-Que Choisir consumers group said.

The report was handed to Ecology Minister Jean-Louis Borloo and Finance Minister Christine Lagarde on Tuesday. French President Nicolas Sarkozy will now hold further consultations before deciding whether to implement its recommendations.