Earth Equity News

French Carbon Tax Plan Stirs Controversy. UPI, September 4, 2009. "Paris is planning to introduce a carbon tax -- a controversial move that could significantly boost energy efficiency behavior in France. Championed by French President Nicolas Sarkozy, the carbon tax is part of Paris' plan to slash greenhouse gas emissions, combat climate change and become less dependent on fuel imports. To be placed on transport and household fuels, the tax is due to come into effect next year, with its exact scale under intense debate. Prime Minister Francois Fillon said in an interview with French weekly Figaro that Paris intends to set the initial price at $20 for a metric ton of carbon dioxide. That price will then gradually increase until 2030. The French opposition has blasted the plan, saying big-time energy utilities should be taxed exclusively. Socialist leader Segolene Royal, who in 2007 ran against Sarkozy for president, said the tax would be unfair to low-income citizens dependent on driving their car. A $20 carbon tax would add $0.18 to the price tag of 1 gallon of unleaded fuel, based on French government estimates. A poll by census company CSA found 74% of respondents oppose a carbon tax, with 56% of those very opposed. But environmental groups have lauded the plan, saying it has the potential to significantly alter energy efficiency behavior. Paris has promised that the money collected from companies and private citizens, estimated to amount to $5.7 billion per year, would be handed back to taxpayers."