France to Tax High CO2 Cars, Fund Research for Hybrids
12 September 2005
French Ecology Minister Nelly Olin has announced a number of initiatives focused on decreasing CO2 emissions and fuel consumption.
The measures include a license tax on cars that emit high levels of CO2, funding for R&D to develop a family car that emits less than 100 g/km of CO2, and increased tax incentives for hybrids and alterative fuel vehicles.
The tax, effective 1 Jan 2006, will be set at €2 (US$2.45) per gram for cars producing between 200 and 250 g/km CO2, and €4 (US$4.91) per gram for those producing more than 250 g/km. The proceeds, expected to be about €18 million (US$22 million), will flow into the French Environment and Energy Saving Agency.
The government is also putting €100 million (US$123 million) into R&D to develop a family car that emits lees than 100 g/km CO2.
Olin also announced that tax incentives for environmentally friendly vehicles such as hybrids and alternative fuel vehicles using LPG or CNG will increase to €2,000 (US$2,450) from the present level of €1,525 (US$1,873).
The French automakers must take advantage of very promising technologies; I think in particular of the hybrid vehicle, which offers many ecological advantages, and which could be a diesel-electric hybrid. The objective is to create a family car emitting less than 100 grams of CO2 per kilometer, which does not exist today.—Minister Olin
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