Energy Saving Association
Energy Saving News

Energy Saving News

French Carbon Tax Law To Be In Place By July 2010

French Carbon Tax Law To Be In Place By July 2010

The French high court recently rejected President Sarkozy's law on carbon tax, a few days before it was meant to come into force, claiming it contained too many exemptions which unjustly placed the burden on a minority of consumers.

This came as an embarrassment for the French leader, who had fiercely defended his carbon tax law, describing it as a “revolutionary” contribution to fighting climate change.

Mr. Sarkozy's law was amended by the Government, but a tax of €17per tonne remains.

However, it still contains exemptions for some "sensitive and energy-intensive sectors"- farmers and fishermen will only pay 25% of the normal rate, and road transport and shipping will pay 65%.

The French government says it will hold consultations in February, with businesses and environmentalists, on how to implement the tax, and also that it will push for the new bill to be approved by parliament in time to become law on July 1st.

Should the government be able to apply the new measure, it would make France the biggest economy to apply a direct carbon tax.

The carbon tax law has been subject to much debate and opposition, namely from the leading business association, Medef, who are calling for a postponement until 2011.

Medef are requesting that the law be implemented only if it is equally introduced across the EU, so as to avoid putting French industry at a competitive disadvantage.

Public support is also weak, with polls showing just over 50% of voters against it. Environmental groups have also crticised the bill, saying it will do little to transform the country into a low carbon economy.

As a more secure way of guaranteeing a reduction in carbon emissions, many experts promote energy efficiency as the most effective solution.

Mark Sinden, Council Member of the Energy Saving Association (ESA), believes that saving energy is a risk-free method to combat climate change by reducing energy consumption and related emissions: "France, just like all other countries, has a lot more to gain from encouraging its public and industry sectors to switch to energy efficiency technology in order to reduce their emissions."

Scepticism still surrounds Nicolas Sarkozy's carbon tax law, as it awaits Parliamentary approval.

Thursday 21st January 2010