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France adopts 2014 budget; carbon tax on fossil fuels
London (Platts)–19Dec2013/753 am EST/1253 GMT

France’s Parliament definitively adopted Thursday the Socialist government’s budget for 2014 which introduces from January a carbon tax on the use of gas, heating oil and coal, Parliamentary documents show reports Platts.

Key priorities in the budget are reducing the public deficit to 3.6% of GDP in 2014 and prioritising the government’s planned “energy transition” to support renewable energy and energy efficiency projects while reducing the role of nuclear power.

In a deciding vote Thursday in the lower house, L’Assemblee Nationale, the bill was agreed after support from Socialist, Green and other left-of-center parties. Members of the main centre-right opposition party, UMP, voted against.

The bill introduces a carbon tax on household use of gas, heating oil and coal in 2014, according to carbon content. The tax is to be implemented for transport fuels such as gasoline and diesel from 2015 onwards.

The duty will be charged at a rate of Eur7/mt of carbon in 2014, rising to Eur14.50/mt in 2015 and Eur22/mt in 2016.

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