The French tax system designed to encourage people to chose low CO2 cars introduced earlier this year has been a big success.
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According to European lobby group, Transport & Environment (T&E), the system has exceeded all expectations and is being extended to other goods.
The ‘ecological bonusmalus’ system was introduced in January this year and offers financial rewards for new car buyers chosing vehicles that emit less than 130 g/km. At the same time the system penalizes buyers of cars that emit a lot of CO2. In the first eight months of the year it has led to a 45% increase in the sale of new cars and reduced France’s new car fleet average CO2 emissions by eight percent.
In its latest newsletter T&E writes that the scheme has been “so successful that it has cost the government €140 million.” France’s environment minister, Jean-Louis Borloo is reportedly happy with this. According to T&E he said: ‘I’ve saved the planet with €100 million! We’re on our way to inventing a new economic model where the market price doesn’t just reward capital or labour but also natural capital.’
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By GlobalData
