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Paris withdraws plans for carbon tax on coal

byCT Report
24/10/2016
in Uncategorized
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PARIS: French governments have always struggled to tax emissions from coal. In 2009, François Fillon had to abandon the idea after his plans were struck down by the Constitutional Council. This time, the plan has been sunk by the country’s biggest union of miners and energy workers.

On 25 April, President François Hollande announced the introduction of a minimum quota price for greenhouse gas emissions from combustion power stations. “This price will give more visibility to investors and promote the use of gas over coal for the electricity sector,” Hollande said.

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After an aggressive lobbying campaign by the energy company Engie, the measure was restricted to the country’s four remaining coal-fired power stations. Two are operated by EDF, in Le Havre and Cordemais, and two by Uniper (formerly E.ON), in Gardanne and Saint-Avold.

The tax was supposed to be introduced as part of France’s 2017 budget. Gérard Mestrallet, the former boss of Engie, is a member of the committee tasked with working on the carbon price.

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