Carbon Tax Hike Delayed from January 2019 until July 2019

Spotlight Activity: Carbon Tax Hike Delayed from January 2019 until July 2019

In its National Low-Carbon Strategy, Stratégie Nationale Bas Carbone, France had set a clear trajectory on increasing a carbon tax. However, the new government elected in 2017 decided last year to increase it even more than anticipated. As the increase is slowly cumulating with fossil fuel price hikes, the Government backed down and pushed back the new increase for at least 6 months, maybe more: This will result in excessive CO2 emissions in France this year, to be added to a 6% gap between the facts and targets during the past 10 years.

At this point, Climate Scorecard and partner organizations (Saving Our Planet) recommend to French government to adopt a practical, progressive and revenue neutral strategy to switch from the current carbon tax scheme towards a Carbon Fee & Dividend policy, similar to that recently adopted by Canada. The carbon price required to reach the objectives of the 2015 Paris Agreement on Climate Change is about 100 € by 2025 and 200 € by 2030.

Context

European countries have been trying to fix the European Trading System (ETS) for over five years now and just started getting some positive results: the price of one tonne of CO2 increased from 10 to 25 euros in one year. However, this price is not effective because too many sectors have been exempted and this price is still much too low to have an impact on prices.

Conversely, we propose to apply a price on carbon uniformly to all domestic and imported goods and services, as proposed by the CCL (Citizens Climate Lobby) in its CF&D (Carbon Fee & Dividend) package (for more details, read our Post #10).

Conclusion

For France to successfully implement a carbon tax, and later merge with the various carbon tax plans at the international level, the carbon tax must be partly redistributive and substitutive:

  • A sizeable part of the tax (over 50%) should be directly redistributed to all people as a Climate Dividend.
  • A small part of the tax (10-20%) should be used for climate education and information about deep decarbonation and low-carbon solutions.
  • The remainder of the tax should help reduce other taxes (for instance: revenue tax).

Status: Falling Behind

France should no longer delay increasing the price of carbon and reducing exemptions; France and the European Union can and should adopt a progressive, redistributive and substitutive “Carbon Fee & Dividend” system (CF&D), in order to decrease significantly CO2 emissions every year.

Take Action

Write to French Republic President, Mr. Emmanuel Macron :

Example of contribution text:

“Mister President, Dear Sir,

France has trouble setting up a framework for a carbon tax. However, simple provisions would reduce resistance and mobilize supports for a price of carbon in France and in Europe. For instance, a Carbon fee & dividend scheme, replacing the current CCE/TICPE and ETS schemes, which have failed in reaching their targets and are not understandable by the general public. European countries have been trying to fix the European Trading System (ETS) for over five years now and are just starting to get some positive results: the price of one tonne of CO2 increased from 10 to 25 euros in one year. However, this price is not effective because too many sectors have been exempted and this price is still much too low to have an impact on prices.

Conversely, we propose to apply a price on carbon uniformly to all domestic and imported goods and services, as proposed by the CCL (Citizens Climate Lobby) in its CF&D (Carbon Fee & Dividend) package (for more details, read our Post #10).

For France to successfully implement a carbon tax, and later merge with the various carbon tax plans at the international level, the carbon tax must be partly redistributive and substitutive:

  • A sizeable part of the tax (over 50%) should be directly redistributed to all people as a Climate Dividend.
  • A small part of the tax (10-20%) should be used for climate education and information about deep decarbonation and low-carbon solutions.
  • The remainder of the tax should help reduce other taxes (for instance: revenue tax).

We are looking forward to your answer and working on climate action together.
With our respectful and best regards

[sign name]

Send This Action Alert Message to: ?Write to French President Emmanuel Macron, Champion of the Earth, at:
http://www.elysee.fr/ecrire-au-president-de-la-republique/

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