FRANCE Law and Practice Contributed by: Carine Le Roy-Gleizes, Corentin Chevallier, Alice Messin-Roizard and Antoine Juquin, UGGC Avocats
Taxes on Air Pollution The bonus-penalty system for automobiles aims at changing the fleet to the lowest-CO₂-emitting vehi- cles by increasing the price of diesel (and, to a certain extent, oil) motors, and by encouraging the produc- tion and increasing the number of electric cars. An ordinance of July 2023 transposes the new EU frame- work governing road pricing for heavy goods vehi- cles planned for the European Collectivity of Alsace. It also enables regions and departments to voluntarily introduce an eco-contribution system for heavy goods vehicles. Taxes on Water Pollution These taxes are implemented through water agencies. They aim to limit water pollution and cover, for exam- ple, the emission of pesticides by taxing companies that discharge polluting products in a watercourse. Taxes on Waste “Incentive pricing” ( tarification incitative (TI), taxe d’enlèvement des ordures ménagères incitative (TEO- MI), redevance d’enlèvement des ordures ménagères incitative (REOMI)) consists of linking the amount of the household waste collection tax to the quantity of waste produced. It aims to reduce overall waste, as well as the quantities of unsorted waste sent to landfill or incineration. 6.3 Incentives, Exemptions and Penalties French law does not directly provide for incentives or penalties for “good” or “bad” environmental behav- iour. However, in September 2023, the French Ministry announced a bonus-penalty system aimed at improv- ing plastic bottle collection and recycling rates. Local authorities, responsible for household packaging col- lection, are subject to this system. Since 2024, an eco-modulation system has been in place for the REP policy. This bonus-penalty system applies to eco-contributions based on environmental criteria. In concrete terms, they aim to support the use of sustainable, reusable and recyclable products, while limiting the presence of hazardous substances in products. Financial incentives are also available for individuals purchasing electric vehicles.
maximum fine for a corporate entity is five times the sanction for an individual. The European Public Prosecutor, Environmental Jus- tice and Specialised Criminal Justice Law of Decem- ber 2020 provides the option for corporate entities whose actions have harmed the environment to pay a public fine, within the framework of an environmen- tal judicial agreement (known as CJIP). Moreover, the same law has created a specialised court in charge of environmental disputes. As regards the interaction between corporate law and environmental law, a 2019 law (Loi PACTE) prescribes that any decision related to the company management must take into account corporate social responsibility (CSR) and environmental considerations. Voluntary firms may explain their “reason for being” to justify what they can bring to customers in a com- petitive market. Furthermore, companies should be mindful of their advertising duties, as the 2021 Climate and Resilience Law imposes rules on greenwashing. 6.2 Environmental Taxes Almost 40 environmental taxes, applicable to house- holds and corporate entities, generate over EUR50 billion in France. Domestic energy consumption tax (Excise duty on energy products) This is a tax on various petroleum products used as fuel or heating fuel (heating oil, gasoline, etc), levied proportionally to their volume or weight at the time they are put into circulation. The same type of tax also exists for gas. General Tax on Polluting Activities (TGAP) A company that has a polluting activity or uses pollut- ing products is subject to the TGAP. Companies are subject to this tax if their activity involves the storage, treatment or transfer to another country of hazardous or non-hazardous waste, or if it emits one of 18 polluting substances.
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