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France Rejects Sarkozy's Carbon Tax Proposal

France Rejects Sarkozy's  Carbon Tax Proposal

When he proposed his carbon tax scheme, French President Nicolas Sarkozy expected to earn the position of head of the worldwide climate change battle.

However,  in France the council rejected the carbon tax proposal, which allowed for too many tax exemptions for the country's major polluters.

Indeed, the scheme enabled about 93% of industrial emissions, other than fuel use, to be exempt from the carbon tax.

The council therefore ruled that the "large number of exemptions from the carbon tax runs counter to the goal of fighting climate change and violates the equality enjoyed by all in terms of public charges".

According to the council, over 1,000 of France's biggest polluters would have been able to avoid paying the tax.

The Energy Saving Association (ESA)'s Council Member, Mark Sinden, believes in the switch to energy efficiency as the key to solve carbon emission issues. A tax on carbon can lead to an increase in price, which would motivate industries to save energy in order to save money, provided the tax is applicable to all sectors and especially to the biggest offenders in terms of pollution.

The rejection was particularly welcomed by the country's Green Party who claimed the tax was a "con" because it exempted so many polluters.

Mr. Sarkozy's proposal was meant to encourage people to use less oil, gas and coal, which would lead to a rise in the price of fuel for cars, domestic heating and factories.

Unfortunately, the tax did not apply to the heavy industries and power firms included in the European Union's emissions trading scheme, which constitute the large part of the total CO2 emissions.

"France has shown that it is a leader in the fight against climate change and it will remain at the forefront by presenting new legislation on the 20th of January," said Luc Chatel, a government spokesman, during the December Copenhagen climate summit.

Nonetheless, the rejection is a blow to Mr Sarkozy, who hailed his proposal at the conference last month: "This carbon tax has one objective - to force you to change your behaviour toward fossil fuels. Without fiscal pressure like this, nothing will change and it will be our children who pay the price," he concluded.

Wednesday 6th January 2010