French ambitious energy transition bill adopted

 

After a lot of back-and-forth and some heated parliamentary debates, the French National Assembly and the Senate have finally found an agreement in France on the new energy transition law. Voted on the 22nd of July 2015, this law is part of the ambitious project to raise the carbon price.

Indeed, the bill promotes a fourfold increase of the carbon price in 2030. Currently at 22 euros, it would rise to 56 euros in 2022 to eventually reach 100 euros in 15 years.

The carbon price directly impacts interior taxes on energy consumption, especially the domestic tax on natural gas consumption and the domestic tax on energy products. The goal is for the carbon price to reach the minimum price at which people will start changing their behavior. This doesn’t mean that the environmental taxation will have an impact on the global taxation. Any increase of the environmental taxation will be automatically compensated by a reduction of other taxes.

Other measures have also been taken. They mainly target renewable energies with a facilitated financial access and administrative process. Energy poverty, food waste but also housing renovation have been discussed. These measures have to be implemented now. This will be the case once they are included in the finance act.