Africa: Aborted Fuel Tax Initiative in France - Its Ramifications for Green Growth

27 December 2018

Paris — Emmanuel Macron was voted to French Presidency in 2017 with the mission of strengthening the integration of the European Union and pursuing economic and ecological reforms. So from the outset, he was set to distinguish himself, not just in Europe but on the world stage, especially after President Trump pulled the United States out of the Paris Agreement. So Macron held the summit meeting on 'One Planet' in Paris last December to push for stronger environment and climate policy. He also spoke of the environment when he addressed the Congress in April 2018, stating that "Let us face it: There is no Planet B."i

As part of the package Macron initiated the new tax on gasoline to finance ecological transition and reduce budget deficit. France was set to increase the diesel tax by 6.5 Euro cents per liter and the gasoline tax by 3.9 cents per liter, which had already increased its gas and diesel taxes by several cents this year, and this shift came after years in which France, and Europe, had encouraged the use of diesel fuel as being better for the environment.

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