Spotlight Issue: Carbon Tax Upgrade Beyond Initial Levels in NDC
On January 1st, 2018, the carbon tax was raised to 45 euros/tCO2, a sharp increase from the initially scheduled carbon tax, in order to help France meet its CO2 reduction target for 2020 (623% compared to 1990 emissions). Last year, emissions in France and other European countries went up, which is exactly the opposite direction the international commitments made by France. This might result in heavy fines since the 2020 target is legally binding. This target is also a necessary condition for France to meet the greenhouse gas emissions reduction target set forth its Nationally Determined Contribution (NDC) in the Paris Agreement.
But there is another twist to this matter: France’s carbon and environmental tax system has been plagued with exceptions, which allow entire sectors of the economy to escape the tax. This completely defeats the purpose of the carbon tax and it is the French Government responsibility to crack down on those exceptions as fast as possible.
To read more about the carbon tax in France: https://www.reuters.com/article/us-france-budget-carbon/france-raises-carbon-taxes-to-repay-edf-renewables-debt-idUSKCN1C21DL
Status: Right Direction
This is a move in the right direction, since this tax has a sufficient level to curb emissions; but exceptions and applications procedure might reduce the efficiency if the Government is not consistent on its application.
Take Action
To help ensure the success of the carbon tax in France, please contact President Emmanuel Macron and prime Minister Edouard Philippe with the following Action Alert message:
We congratulate France on upgrading its carbon tax rate in order to curb CO2 emissions in France, which unfortunately have been rising again lately. In his opening speech at the One Planet Summit on December 12th, 2017, President Emmanuel Macron declared: “We are losing this battle”. By taking this voluntary step to crack down on CO2 emissions, France is on the right track. But tax exoneration and derogatory measures risk to hamper this process. We hereby urge the French presidency and the French Government to crack down on CO2 emissions and suppress derogatory measures limiting the application of the carbon tax. All economic sectors must receive the right carbon price signal, without any exception. We also hope that France will spearhead an European Initiative to tax CO2 imports, and possibly other GHG imports, since there is an unfair advantage to CO2-intensive imports unless there is a customs carbon tax imposed at the borders of the carbon tax application zone.
Message translated into French:
Nous félicitons la France d’avoir augmenté sa taxe carbone pour inverser la courbe des émissions de CO2, qui ont malheureusement augmenté récemment. Dans son discours d’ouverture du One Planet Summit le 12 décembre 2017, le Président Emmanuel macron a déclaré: “Nous sommes en train de perdre cette bataille”. Par cette action decisive pour réduire les émissions de CO2, la France se remet sur la bonne trajectoire. Mais les éxonérations de taxe et les trop nombreuses dispositions dérogatoires à la taxe carbone font courir le risque de réduire l’efficacité de ce dispositif. Nous souhaitons vous inviter par la présente à vraiment réduire les émissions de CO2 en supprimant les dérogations et les exemptions qui limitent l’application de la taxe carbone. Tous les secteurs économiques doivent recevoir le bon signal prix du carbone, sans aucune exception. Nous espérons également que la France lancera sans tarder une initiative européenne pour taxer les importations de CO2, et si possible les importations d’autres GES, puisque l’absence de taxe carbone aux frontières de la zone d’application de la taxe carbone constitue aujourd’hui une distortion de concurrence favorable aux importations intensives en CO2.
Send Action Alert Message to:
M. Le Président Emmanuel Macron : http://www.elysee.fr/ecrire-au-president-de-la-republique/
M. Le Premier Ministre Edouard Philippe : http://www.gouvernement.fr/contact/ecrire-au-premier-ministre
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