Months After Banning Fracking, France Now Has a Carbon Tax

The French Parliament on Thursday adopted a budget for 2014 which includes a tax on carbon emissions from gas, heating oil and coal, according to a report in Platts.

The money derived from the tax — which largely targets transport fuels and domestic heating — will be used to reduce emissions through increased installation of renewable energy throughout the country, according to the report.  The move is projected to raise €4 billion, or $5.5 billion, per year by 2016, which can then spent on tax breaks for the wind and solar power industries.

“Its operation is simple: part of domestic consumption taxes on fuels and fossil fuels will be based on CO2 emissions given off by their use,” Prime Minister Jean-Marc Ayrualt said when introducing the proposed tax in September, noting the tax will affect the petrol, diesel, coal, natural gas, and heavy fuel oil industries.  “Throughout this transition, the Government will pay attention to the situation of the French, especially the poorest, who often worry about these changes.”

Months After Banning Fracking, France Now Has a Carbon Tax