Today the Podcast Podcast Economy
Court of Auditors calls for increased carbon tax
Tomorrow begins the global action week for the climate at the call of Greta Thunberg. Events are planned this Friday in New York, Johannesburg or Mexico City, France it will be Saturday. Despite these calls to fight against climate change, the French government has said it does not " consider " an increase in the carbon tax in 2020. The council of compulsory levies nevertheless advocates the revival of environmental taxation.
France is setting itself more and more ambitious targets in terms of reducing carbon emissions. But, the hexagon has already fallen behind the objectives of the law of 2015. For the council of compulsory levies, attached to the court of accounts, the carbon tax is an essential tool to reach the goal. He therefore proposes the resumption of increases in this energy tax . Increases because the price of carbon is supposed to change little by little. Only here, last year, the executive, faced with the challenge of " yellow vests ", gave up the increase of 2019. The government does not want to take a risk this year.
However, the report is formal, it must be done quickly. To tell the truth, it will probably not even be enough. The experts worked on two scenarios. Even the most ambitious would not achieve the goal of a 40% reduction in greenhouse gas emissions in 2030 compared to 1990.
Then, beyond the tax rate, it would be necessary to broaden its scope by tackling tax loopholes.
Tackling tax loopholes
The report suggests ending the refund of the tax on energy products (wider than the only carbon tax) in favor of the road transport of goods. In the 2020 budget , a step will be taken in this direction with a reduction of the reimbursement of two cents per liter. The court of auditors also suggests using the economic sectors, now exempt, including international air and sea transport.
Measures that may make people unhappy. This did not escape the authors of the study who provide some advice. Put in place at European level a customs duty on products imported from non-cooperative countries in environmental matters.
Readability and transparency are not to be neglected either. Today, the carbon tax is a component of the tax on energy products and it is therefore difficult to realize on the part of the effort for climate. One of the ingredients for promoting acceptance of the carbon tax is to ensure transparency in the use of revenue.
So what to do? Several avenues are possible and have been explored elsewhere, explains Sébastien Postic of the Institute of the Economy for the climate.
Transparency on the use of pensions
In California, the proceeds of the CO2 emission auction are fed into a public fund, the Greenhouse Gas Reduction Fund. 60% of the amount must be spent on selected housing and transportation development and modernization programs each year after public consultation.
Sweden has included this carbon tax as part of a comprehensive reform and has lowered other taxes. Result: no more tax burden .
Tax breaks also funded in British Columbia. And the recipe worked: in the beginning, the tax was rejected by the majority of the population of this region of Canada. Now two-thirds of respondents are in favor.
A carbon tax can therefore be popular. Meike Fink, responsible for " Climate Fair Transition " for the Climate Action Network, who is more positive about the signal sent by this report of the Council of compulsory levies, points out that some " yellow vests " are also involved in the fight for climate. What is needed, according to her, is simply to make it more equitable through a gradual redistribution based on household income in particular.
Environmental taxation in the world
Last year, the World Bank identified 46 countries and 28 regions with a tax or emissions trading scheme or plans to acquire them. Because it makes emulators, including in Africa, this year South Africa has entered the dance. Côte d'Ivoire and Senegal are thinking about it.
On the same subject