Policy status:In Force
Date Effective:2007
Policy Type:Economic Instruments>Fiscal/financial incentives>Grants and subsidies
Policy Target:Transport>Passenger
Agency:Ministry of Ecology, Energy, Sustainable Development and Planning
Legal References:décret 2007-1873 du 26 décembre 2007
Evaluation:This scheme has had a significant impact on new vehicle sales in France: - the average emissions from new vehicles fell to 127g CO2/km in 2011 (compared to 149.3 in 2007); - over the first ten months of 2012, although the overall market shrank by 13.6% compared with the same period of 2011, each of the tranches eligible for the bonus saw its new vehicle registrations increase strongly (+ 75%) whilst those subject to the "malus" saw their registrations fall (- 28%).

Implemented in France since January 2008, this is an incentive to purchase vehicles that emit the least CO2. On purchase, a bonus is paid to people acquiring vehicles that emit less than 105g CO2/km (threshold valid on 1st January 2013). Conversely, a purchase tax ("malus") applies to cars that emit over 135g CO2/km (idem). The bonus ceiling for electric vehicles was raised from €5,000 to €7,000 in 2012, up to a limit of 30% of the total cost of the vehicle including tax; that relating to hybrid vehicles has been doubled to €4,000, up to a limit of 10% of the total cost of the vehicle including tax, with a minimum subsidy of €2,000.

New decrees and order have been published in 2014 in order to strenghen the requirements to obtain the CO2 bonus.

Last modified: Thu, 18 Jun 2015 17:39:57 CEST