France Puts Weight Behind Carbon Taxation, Eyes 2011 Implementation

by Amanda Banks, Tax-News.com, London

22 June 2009

On June 2-3, France kick-started plans to introduce a carbon dioxide tax on various products by creating a draft outline for its implementation. The tax is to be rolled out in 2011 - a year later then expected.

French Environment Minister Jean-Louis Borloo and Finance Minister Christine Lagarde have since opened a debate on the carbon tax's implementation with the release of a public consultation on June 10.

The tax will encourage consumers to opt for greener alternatives and help reach France’s greenhouse gas emission targets. No concrete plan as to what products it might apply to have been released as yet, but French President Nicolas Sarkozy, who has vowed to freeze the country’s tax burden, said that when it is implemented the tax would be offset by a reduction in tax elsewhere - possibly in labour taxes, he suggested.

The move will be welcomed by Sweden, which is soon to assume the European Union presidency and champion a pan-European carbon tax during its six-month term.

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