A new "carbon" tax has been introduced in France as of 1 April 2014. The "internal tax on consumption" (taxe intérieure sur la consommation (TIC)) will include a new levy on coal, heavy fuel oil and natural gas. According to the 2014 budget, the tax on gas is set at €1.41/MWh as of 1 April 2014. It will double to €2.93/MWh in 2015 and €4.45/MWh in 2016. The tax on liquid fuels will apply only in 2015; it should raise gasoline price by €2.6c/l and diesel price by €2.9c/l (20% VAT included) while the heavy fuel oil price should increase by €2.73/l.
The tax is expected to cut CO2 emissions in road transport and buildings by 1 MtCO2 and 2 MtCO2, respectively, by 2017. The CO2 tax will be set at €7/tCO2 in 2014 and will increase to €14.5/tCO2 in 2015 and to €22/tCO2 in 2016. It is expected to raise €1.55bn from diesel sales, €1.78bn from gas sales (including €1.09bn from residential sales and €700m from commercial and industrial sales), €370m from fuel oil, €350m from gasoline and €280m from non-road transport gasoil by 2016. Revenues from heavy fuel oil, coal and gas used as a transportation fuel should be more limited, at €40m, €30m and €10m, respectively.