France has outlined plans to impose a carbon
tax onlarge industrial installations until 2013 when they start
paying for emission permits under the revised EU Emission Trading
Scheme (EU ETS). The tax would come into effect in July.
French Environment Minister Jean-Louis Borloo
outlined the upcoming revised proposal on Wednesday (20 January),
after the Constitutional Court rejected the government's
originalplan last December.
The government had originally hoped to levy a carbon tax on oil,
gas and coal consumption by households and businesses. It was going
to be set at €17 per tonne of carbon emissions, rising gradually
(EurActiv
14/09/09).
But the Constitutional Council said the large number of
exemptionsfrom the legislation would put an unfair burden on
consumers andwould not fulfilthe objective of fighting
climate change. It said that the tax would not be applied to 93% of
industrial carbon emissions, and over 1,000 of France's biggest
polluters would be able to avoid it.
The court pointed out that the law exempted big emitters from
power stations to oil refineries and cement works, which are covered
by the EU ETS, and imposed lighter tariffs on groups like farmers,
fishermen and truck drivers.
The new proposal would amend the problem by subjecting industrial
installations under the ETS (seeEurActiv
LinksDossier) to a carbon tax until 1 January 2013, the
environment minister said. Until now, the power sector has enjoyed
free emission permits, but free allocation will be gradually phased
out from 2013.
The French government said in a statement that it would also take
measures, starting in February,to protect the competitiveness
of certain sensitive sectors. It pledged to consult withbusinesses,
social partners and environmental organisations on implementation.
The new text would retain other aspects of the initial proposal,
including the tariff of 17 euros per tonne of CO2 and green cheques
designed to compensate consumers, the government said.
A new bill is expected to be presented to the French parliament in
the next couple of weeks.
(from euractiv.eu)