Carbon Tax - France

The French government is working towards implementation of a direct carbon tax by July 2010. On 21 January 2010, the government proposed a number of amendments to the original legislation, which is aimed at encouraging French consumers to be more energy efficient and conscious of their energy decisions.

The tax level remains at 17 EUR per metric tonne of CO₂ at over 1,000 of the most polluting sites. Main innovation of the amended bill is the inclusion of previously excluded sectors, such as power stations, oil refineries, and cement works.

These plants were exempted in the first version of the bill because they are scheduled to be subject to a European Union quota system to be implemented in 2013. EU regulation calls for emissions in those sectors to be reduced by 21% by 2020.

France aims for an 80% reduction in CO₂ emissions by 2050.

France would be the largest economy to apply a direct carbon tax, mirroring existent measures in Denmark, Sweden and Finland.

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