In the aftermath of the regional elections in France, which saw President Sarkozy’s party heavily defeated, French Prime Minister Fillon has declared that the national carbon tax devised by the government and supposed to be introduced this July, will be put off until a broader agreement on this issue is found at European level. Fillon motivated the government’s decision by referring to the need to avoid to put French industry at competitive disadvantage with the unilateral introduction of the carbon tax, especially with respect to neighbouring Germany. The French PM told reporters that France will be pushing the European Commission for a rapid harmonization of environmental taxes across the Union, but the decision to avoid introducing the national carbon tax has raised concerns about the environmental commitment of the French government in both NGOs and parts of the environment ministry. Naturally, the decision to postpone indefinitely the introduction of the carbon tax has been welcomed by French industry groups.

Climate Policy News

• This news is extracted from the Climate Policy News : a CMCC weekly column that summarises the latest news on international climate change agreements, the updates on the carbon market and the energy and technology updates in the realm of climate change. Go to the web page and see all previous issues since March 2007.
• This week: EU ETS emissions fall in 2009; France puts off introduction of carbon tax; EU biofuel target borderline sustainable; Obama’s plan to win Republican support; the carbon market this week – Download the March 22- April 1, 2010 Newsletter [pdf 145 Kb]