Carbon Price Increase

  • News - Carbon Price Increase

    Towards a clear and accelerated carbon price augmentation

    16 October 2017

    The Climate Change Solidarity Package, announced on 19th of September by French Minister for the Ecological and Inclusive Transition Nicolas Hulot, includes four ecological and solidarity measures aimed at households: generalisation of the vehicle conversion premium, extension of the “energy cheque” for 2018, continuation of the tax credit for energy transition (CITE) for the most efficient energy saving measures and encouragement to replace fuel boilers with the ones using renewable energy. This package also returns to the evolution of the carbon offset path.

    As previously announced in the Climate Plan, presented this July, this path should be accelerated. In this manner, the value of one tonne of CO2 should gradually rise from 30,5 € in 2017 to 86,2 € in 2022. These targets, provided for by the budget bill 2018, are by far more ambitious than those in the TECV in 2015.

    This measure must contribute to achieving the objectives set by France in regard to reducing greenhouse gas emissions and, in particular, the target of carbon neutrality by 2050, as outlined by the Climate Plan. According to the ministry, the increase of the carbon price over five years will be able to influence the choices of economic actors and encourage green innovation, including improving energy efficiency and developing use of low-carbon energy products.