Overview

Description

There are two main mechanisms for effective carbon pricing in France: the excise tax on fossil fuels and the European Union Emissions Trading System (EU ETS). In addition to these, there are three other mechanisms: the European market for fluorinated gas quotas, as well as the waste and emissions components of the general tax on polluting activities (TGAP). These mechanisms sometimes overlap for the same product. The French carbon tax (Contribution Climat-Énergie or CCE) is attached to the domestic excise taxes on energy consumption (fraction perçue en métropole sur les produits énergétiques, l’électricité et le gaz ), increasing their overall rate. These excise taxes are added to the final price of petrol, diesel, heating oil or natural gas, so are paid by individuals and businesses.

Recent Developments

The Contribution Climat-Energie (CCE) remains unchanged. Nevertheless, the total effective carbon pricing in France has increased in early 2025, compared with the 2024 level (average effective price of ??€91/tCO??eq in 2024 and€97/ tCO??eq for the first six months of 2025). About 27% of emissions are untaxed, mainly in agriculture and international aviation. The government is also engaging in international carbon?pricing tools like CBAM, but no domestic carbon?tax reforms or 2025 revenue figures have been officially published.

Coverage

The French carbon tax applies to CO2 emissions from all fossil fuels in mainly the industry, buildings and transport sectors, with some exemptions for these and other sectors.

Pricing and Allocation Approaches

Set price

Compliance Approaches

Quarterly

Relation to Other Compliance CPIs

Operators covered by the EU ETS are subject to a level of fuel excise tax rate in place before the introduction of the carbon tax scheme, except for non-commercial aviation.

Covered Sectors

Industry

Mining and extractives

Transport

Buildings

Agriculture, forestry and fishing fuel use