Cour des Comptes criticizes France’s fiscal governance of the energy sector

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.