France’s Cour des Comptes has called into question the current structure of the country’s energy tax system, deeming it inconsistent with the country’s climate and energy ambitions.
According to the report, although measures such as the “carbon component” have been introduced, energy taxation is not designed as an effective lever for energy and climate policy.
This observation raises questions about the effectiveness of current tax mechanisms in meeting the challenges of the energy transition.
French households spend an average of 3,140 euros a year on energy, divided between housing (1,720 euros) and transport (1,420 euros).
Taxes account for a significant proportion of this expenditure: 43% of the pre-tax price for domestic energy and 140% for transport.
According to the Court, this tax burden creates a “strong political sensitivity” around any change in energy taxation.
Yet, despite the importance of this tax, its role and impact on energy and climate objectives remain unclear.
A decision-making process focused on Bercy
The report highlights the unbalanced governance of energy taxation, largely dominated by the Ministry of Economy and Finance.
Until recently, the Ministry of Ecology and Energy did not contribute significantly to the development of this tax system.
Moreover, the recent creation of the General Secretariat for Ecological Planning has not yet strengthened this governance.
This concentration of decision-making within a single ministry limits France’s ability to integrate energy taxation into a broader transition strategy.
In the absence of effective coordination, there is a risk that climate objectives will not be optimally met.
This centralization calls into question the ability of the tax framework to adapt to rapid changes in energy markets and European policies, particularly with regard to carbon pricing and emissions regulation.
European Reforms and Consequences for Consumers
Recent developments in European regulations, in particular the reform of the carbon market, pose additional challenges for French energy taxation.
The Cour des Comptes predicts that this reform could push up gas prices by 11-13% and fuel prices by 10-11% in the short term, representing an increase of 300 euros per household.
This prospect highlights the need for a better adapted and coordinated tax system to protect consumers while meeting emission reduction targets.
Towards a review of tax mechanisms
To meet these challenges, the Cour des Comptes recommends “cross-functional monitoring of energy-related tax systems”.
The aim is to ensure that taxation is consistent with energy and climate objectives, without changes having a disproportionate impact on consumers or business competitiveness.
Such an approach would require better cooperation between the various ministries and a clarification of roles, in particular for the General Secretariat for Ecological Planning.
Such a revision could enable energy taxation to be repositioned as a strategic lever, taking into account economic constraints and market realities.
A rethought tax system should both encourage energy efficiency and limit the negative economic impact on businesses and households.
