A French government advisory committee has proposed to the Ministry of Environment to raise taxes on coal-fired power plants or to strengthen CO2 emission rules to incite power utilities to generate power from gas rather than coal and to reduce CO2 emissions. The amount of the tax and its increase rate have not been specified.
In May 2016, the French government decided to introduce a carbon price floor of around €30/tonne in its 2017 finance bill, that will be presented to cabinet in September 2016 and adopted by the Parliament in November 2016. Since 2008, carbon prices under the European Emissions Trading System (EU ETS) have fallen from around €30/tonne to €6/tonne due to a glut in emission permits.
The carbon pricing committee also proposed to set a European carbon floor price of €20-30 per tonne in 2020. This price would increase by 5% to 10% per year to exceed €50 by 2030.
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