|Policy Type:||Economic Instruments>Fiscal/financial incentives|
|Agency:||Ministère de lÉquipement, des Transports, du Logement, du Tourisme et de la Mer|
|Legal References:||Projet de loi de finances pour 2006|
Ratifying 2004s planned Biofuels Initiative aligned with the EU Biofuels Directive, representatives of the public and private sectors signed a 15-point agreement to further plans to supply 5.75% of Frances 2010 fuel as biofuel. Prime among the means to encourage biofuels market penetration, the public-private partership listed - incorporation of ethanol into gasoline of at least 5% - support for the development of synthetic biodiesels and other biofuels - support for flex-fuel programs to encourage vehicle manufacturers to develop motors to run on either fossil fuels or biofuels - development of biodiesel production and distribution infrastruture While the plan offers no concrete promises of future tax breaks for biofuels, it does commit the government to maintain unchanged the now-favorable tax treatment included for biofuels in Budget 2006. The budget bill reinforces the principal supply-side tax break offered to the biofuel sector: an existing reduction in the Taxe Generale sur les Activites Polluantes (TGAP) for refinery operators and filling stations who meet minimum levels of biofuel content. However, the bill reduces the principle demand-side tax break: long-standing gas tax reductions at the pump for consumers whose filling stations offer high biofuel-content products. In addition, the plan progressively raises the surplus environmental tax on refiners and filling stations that fail to meet minimum biofuel content levels. Between 2006 and 2010, the federal government will establish additional penalties for refineries and filling station operators.
|This record supersedes:||Biofuels Initiative|
Last modified: Thu, 14 Mar 2013 19:15:29 CET