PARIS, (Reuters) – France’s planned carbon tax cannot be applied because it includes too many exemptions, a French government body ensuring laws are constitutional ruled yesterday, in an embarrassing setback for the government.
The tax on carbon-emitting products, meant to encourage consumers to save energy and use less fossil fuels, is one of President Nicolas Sarkozy’s most loudly defended initiatives and was meant to come into effect on Jan. 1, 2010.
“The exemptions included in the carbon tax run counter to the aim of fighting climate change and create inequalities with respect to public charges,” the Constitutional Council said in a statement.
Prime Minister Francois Fillon said in a separate statement the cabinet would in January examine a new law taking into account the ruling.
Sarkozy has thrown his weight behind the levy, saying it would support the battle against climate change, but the plan had to be watered down extensively to appease critics.
In its ruling, the council said the law exempted some of the worst industrial polluters such as refineries and included relief for farmers and fishermen, among numerous other exemptions.
“93 percent of carbon dioxide emissions of industrial origin, other than fuel, will be totally exempt from the carbon tax,” the government body said in the ruling.
