The French government is reducing its subsidies for people buying fuel-efficient cars but is increasing penalties for buyers of high-consumption vehicles.
In 2008 France launched a bonus-malus system which has brought average CO2 emissions from new cars down from 149 g/km to 128. But in revenue terms, the penalties on gas-guzzlers have not brought in enough money to offset the cost of subsidising fuel-efficient cars. The bonuses start at €5000 for buyers of cars emitting less than 50 g/km and include €100 for cars emitting 90-105g, while the penalties start at €200 for cars emitting 141-150g. In future, any car emitting 190g or more will have to pay the penalty every year, not just once.
The decision to create a Europe-wide carbon price was right but creates significant political risk. The good news is it can still be fixed.
It's about time the EU requires parts of key products to be made locally – and nowhere is this more urgent than in the battery sector.
Interactive dashboard: which countries have the greenest tax systems?
Yearly publication analysing and comparing the car taxation systems across 31 countries in Europe.