Title of the measure: FRA44 Tax on energy General description

Last update: October 2015
FRA44 Tax on energy
Title of the measure:
General description
The Interior tax on the consumption of energy products (Taxe Intérieure de Consommation sur les
Produits Energétiques - TICPE) aims at reducing the energy consumption (mainly in transport sector) by
increasing the tax on energy products (fuels and gas).
The level of taxation on gasoline and diesel in France is quite higher than the allowed European
minimum level1. For example, in 2015, the tax levels are:
 46.81€/hl for diesel (33€/hl min. allowed by the EU)
 62.41€/hl for unleaded high-octane petrol (35.9€/hl min. allowed by the EU)
Nota Bene: the TICPE represented the fourth budgetary revenue of the French state (i.e. the equivalent to
13.5 billion of euros in 2012).
Several sectors benefit from TICPE reduction or exemption:
 Road hauliers and public transport services (reduction)
 Taxi operators (reduction)
 Farmers (reduction on fuel)
 Air transports and sea transports (exemption except for private planes and boats).
Nota Bene: biofuels will benefit from reductions until 2016.
Energy products can also be exempted of taxes for certain uses:
 If they are used to produce electricity;
 If they are not used as a fuel;
 If they are used to extract or produce natural gas;
 If they are used to produce mineral products (except metallic products).
The “finance law” 2014 (loi de finance 2014) has introduced an additional and progressive taxation rates
on energy products proportioned to their CO2 content (see FRA 5 Carbon tax for details). Its rate was first
fixed at 7€/ton in 2014 then, 14.5€/ton in 2015 and 22€/in 2016. The last law for energy transition and
green growth (loi pour la Transition Energétique et la Croissance Verte – LTECV) voted in August 2015
(n°2015-992) has announced a contribution level of 22€/ton in 2016, 56€/ton in 2020, then 100€/ton in
2030.
Superethanol E 85
Unleaded high-octane petrol
SP95 – E10
Unleaded high-octane petrol
(SP 95 / SP 98)
Diesel
Off-road diesel oil
Domestic fuel
Jet fuel
LPG fuel
Butane
Propane
1
Unit
hl
hl
2014
12.40
60.69
2015
12.62
62.41
hl
60.69
62.41
hl
hl
hl
hl
100 kg
42.84
8.86
5.66
exemption
10.76
exemption
exemption
44.82
10.84
7.64
13.00
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a
scheme for greenhouse gas emission allowance trading within the Community and amending Council
Directive 96/61/EC
Last update: October 2015
100 kg
2.19
Heavy fuel
100 m3
1.49
Natural gas fuel
MWh
1.41
Combustible natural gas
Figure 1: TICPE assessment including CO2 taxation
4.53
3.09
2.93
Impact evaluation
According to the NEEAP 2014, 4.7 Mtoe of energy savings are expected in 2016 thanks to this measure
(taking into account the higher level of taxation than European minimum level) and 4.4 Mtoe within
2010. These savings will mainly affect the road transport and buildings.
Energy saved and potentially saved thanks to this scheme has been assessed from the SceGES2 tool from
the French General Direction for Energy and Climate (DGEC) thanks to a bottom-up approach describing
the physical determinants of this measure:
TICPE
diesel
2013
4.9 Mtoe
2016
4.3Mtoe
2020
4.1Mtoe
gasoline
0.5Mtoe
0.4 Mtoe
0.3Mtoe
Figure 2: Expected energy savings thanks to the increase in the TICPE proportionally to the CO2 content
of fuel
(Source: NEEAP 2014)
Nota Bene: these assessments have to be used carefully because they are very depending on oil price and
exchange rate (hypotheses for oil price evolution: €65/bbl in 2010, €89 €/bbl in 2015, €98/bbl in 2020).
Measure Impact Level
 low
 medium
 high
Definition of impact:
Low: energy savings < 0.1% of the overall transport sector consumption
Medium: between 0.1 and 0.5%
High: > 0.5%
Explanation:
According to the statistic department of the French Ministry for Energy and Sustainable Development
(SOeS), the final energy consumption of the transport sector was 48.7 Mtoe3 in 2013. As a consequence,
this measure would have led to 11% of energy savings.
Interaction of measures
TRA-FRA30 HGV Eco-tax
TRA-FRA32 Tax on company vehicles - CO2 basis
FRA-5 Carbon tax
Historical data
Since 2006, a tax reduction can be granted on premium gasoline (1.77 €/hl) and diesel (1.15 €/hl).
Since 2007, the French regions can ask for a regional contribution to the TICPE: 1.77 €/hl for premium
gasoline and 1.15 €/hl for diesel.
Since 2011, the regional counsellors and the Assembly of Corsica (Island in the South of France) can
increase the TICPE of 0.73 €/hl for premium gasoline, and 1.35 €/hl for diesel.
2
SceGES comes from « GHG emissions scenarios elaborating» (Scénarisation des Emissions de Gaz à
Effet de Serre)
3
Bilan énergétique de la France pour 2014, juillet 2015, Service de l’Observation Et des Statistiques
Last update: October 2015
References
Legislative and legal acts
Article 30 de la loi n°2015-992 du 17 août 2015 relative à la transition énergétique pour la croissance
verte (the law for energy transition and green growth that has fixed the carbon contribution of energy tax
up to 2030)
Loi n° 2014-1654 du 29 décembre 2014 de finances pour 2015 (the « finance law » that has updated some
carbon contribution)
Loi n° 2013-1278 du 29 décembre 2013 de finances pour 2014 (the « finance law » that has introduced
the carbon tax)
Directive 2008/118/CE du 16/12/2008 relative au régime général d'accise
Directive 2003/96/CE du Conseil restructurant le cadre communautaire de taxation des produits
énergétiques et de l'électricité (the EU directive restructuring the EU framework on energy taxation)
Directive 2003/87/CE du 13/10/03 établissant un système d’échange de quotas d’émission de gaz à effet
de serre dans la Communauté et modifiant la directive 96/61/CE du Conseil (the EU directive introducing
the Emission and Trading Scheme)
Code des Douanes (article 265)
For further information
The specific section of the Ministry for Sustainable Development on energy taxation:
www.developpement-durable.gouv.fr/La-fiscalite-des-produits,11221.html
NEEAP 2014