Sarkozy launches carbon tax to help 'save the human race'

French president vows to lead fight against global warming with tax to encourage cuts in fossil fuel consumption
Angelique Chrisafis
guardian.co.uk, Thursday 10 September 2009 17.15 BST
Nicolas Sarkozy today vowed to lead the fight to "save the human race" from global warming, launching a carbon tax to encourage French families and industry to cut their use of fossil fuels.
From 2010, France will become the biggest European economy to levy a carbon tax, following other successful schemes introduced by Nordic countries in the 1990s.
The tax – initially set at €17 (£15) per tonne of carbon dioxide emissions – will be levied on individuals and businesses for fossil fuel consumption.
It means family fuel bills will rise, while businesses will pay more for factories run on fossil fuels.
In a speech peppered with warnings about the need for France to take the lead in fighting climate change, Sarkozy said: "There are no reserves left. It's a question of survival of the human race."
He said his aim was to change French habits to prepare for a post-petrol economy, reduce the consumption of fossil fuels and tax people for actions that were damaging to society.
"There is one objective: to encourage homes and businesses to change their behaviour," he added.
After weeks of government gaffes and public rows about the form the tax would take, polls before Sarkozy's speech showed two-thirds of French people opposed the measure.
Sarkozy had likened his "historic" task of convincing the public to support the carbon tax to other key moments in France, such as decolonisation and the abolition of the death penalty.
But families in isolated areas had feared being punished for using their cars.
Farmers and transport companies warned that the tax was unfair and opposition parties called the president Monsieur Taxe for bumping up the fiscal burden.
However, green politicians and environmental campaign groups said the tax as a wasted opportunity and did not go far enough.
Greenpeace said the plans was "dramatically lacking in ambition", a wasted effort and a failure from the outset.
Pascal Husting, the head of Greenpeace France, said excluding electricity and starting the tax at such a low rate meant "it would change absolutely nothing in terms of behaviour" nor encourage energy-saving or renewable energy.
Although the tax will apply to oil, gas and coal, it will not apply to electricity.
Sarkozy argued that, with 80% of electricity produced in France coming from nuclear plants – which have low emissions – it would make no sense to increase the price of this form of power.
Some green campaigners had wanted the tax to start at a higher rate than €17 per tonne of CO2 emitted, but the president said the tax would begin at a low level and gradually rise in the coming years to give the French a chance to change their lifestyles.
Sarkozy said state would not make money from the tax, with all the €3bn collected being returned to families and business through tax credits, tax cuts and other green incentives.
The system will differentiate between people who live in urban areas with good public transport and those who live in rural areas and are more dependent on cars. Rural households will get more money back from the state, the president said.
Although the tax will apply to oil, gas and coal, it will not apply to electricity.