France considers launching carbon tax
July 31st, 2009 by adminFrances government was set to consider taxing carbon emissions as part of a drive to fight global warming, after experts handed in a report on the issue on Tuesday.
Trade unions and consumers associations have already said they oppose any new taxes for French households.
The government-named panel headed by former Socialist prime minister Michel Rocard recommended that the tax be paid “by everybody without exception and exemption.“
The new tax “must not increase inequalities,” said the CGT union.
“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 lobby group warned.
Consultations before Sarkozys final decision are to be held with the ministries and economic sectors most concerned by the new tax, junior environment minister Chantal Jouanno said.
French President Nicolas Sarkozy is to have the final word on Rocards recommendations, possibly before the end of the year. The report was handed to Environment Minister Jean-Louis Borloo and Economy Minister Christine Lagarde.
Under Rocards recommendations, leaked in Les Echos business daily last week and confirmed to AFP, France would bill 32 euros (46 dollars) for every tonne of carbon dioxide emitted in 2010, rising to 100 euros per tonne in 2030.
The prospective carbon tax on fossil fuels — oil, gas and coal — is aimed at steering consumers and business away from energy-hungry goods and services.
Household gas and fuel heating costs would rise by between 60 and 170 euros per year, depending on the type of building and method used, according to the French agency for development and energy control.
In practice the levy — intended to come into force from 2010 — would add 0.077 euros to the cost of one litre of unleaded fuel and 0.085 euros to a litre of diesel.
The French climate contribution is separate from a proposal floated by Sarkozy in March for a carbon tax on imports from countries which have lower environmental standards than France.
Four European countries — Sweden, Denmark, Germany and Britain — have so far adopted similar measures to curb consumption of energy-hungry products.
Science News
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