France introduces impressive bonus system for low emissions vehicles; €5000 for electric cars
As a result of its recently held 'Grenelle Environnement' (national environment summit), the French government initiated an impressive bonus/malus system for new vehicle purchases based on their CO2 emissions per kilometer. Buyers of eco-friendly cars receive rebates ranging from €200 to up to €5000. The system is financed by a malus imposed on those who buy vehicles with a high emissions profile.
Electric vehicle purchases are rewarded most. In France, electric cars would be very green on a well-to-wheel basis because over 75% of the country's electricity is generated from nuclear sources. Electric cars can also be powered by carbon neutral renewables like biomass, wind or solar energy. In the future, they could even utilize negative emissions electricity obtained from biomass the CO2 of which is geosequestered (so-called 'bio-energy with carbon storage'). In such a case, driving a car would mean actively taking emissions from the past out of the atmosphere (previous post on 'driving in the strange world of carbon negative energy').
The ecobonus starts for vehicles which emit less than 130 g CO2/km, which covers around 30% of current sales. This rebates will be complemented by a 'superbonus' when the buyer offers a vehicle older than 15 years for scrapping. Those who buy a new car that emits more than 160g CO2/km receive a malus; this concerns roughly 25% of all vehicles currently sold in France.
The new mechanism, which constitutes the first application of the ecological 'price signal' strategy proposed by the Grenelle, is purely indicative. It has been created in such a way that the malus finances the expenses needed to cover the bonuses. Therefor, the system does not imply new government expenses or taxes for households or businesses.
The rebates are progressive: the lower the CO2 emissions of the new car, the higher the bonus:
There is no bonus nor a malus for cars the emissions of which are close to the current average - namely between 130 and 160gCO2/km. This 'neutral zone' represents roughly 45% of all new cars sold in France:
energy :: sustainability :: nuclear :: renewables :: biomass :: bioenergy :: greenhouse gas emissions :: transportation :: negative emissions :: bio-energy with carbon storage :: electric car :: France ::
The superbonus of €300 will be paid when the purchase of a new car eligible for a bonus is accompanied by the scrapping of a car older than 15 years. This super bonus comes on top of the already existing eco-boni for the scrapping of old cars offered by auto manufacturers. This system will encourage the withdrawal of old cars from the roads and contribute significantly to reducing air pollution.
In order to promote ultra-clean and efficient vehicles, the French government will also reward those who buy an electric car. A payment of €5000 is foreseen for cars that emit less than 60gCO2/km.
The trehsholds of the bonus/malus system will be tightened by 5gCO2/km every two years, in order to encourage auto manufacturers to produce more and more low emissions vechicles.
The French government hopes to have the legislation for this new mechanism formalized before the end of the year.
With this range of measures, the Grenelle proves its usefulness. The Summit united all stakeholders - industry, civil society, government, non-governmental organisations - with the aim to find compromises on ways to tackle the most urgent environmental matters, in particular climate change. The feebate system will not impact the purchasing power of households, because the operation is budgetary neutral. In total, over 75% of all new vechiles sold in France will benefit either from a bonus or from a tax exemption (on the basis of numbers for vehicle sales in the year 2006.)
The scheme was announced by minister for the environment Jean-Louis Borloo, minister of economic affairs Christine Lagarde and by Eric Woerth, minister of the budget. They think it will "reduce the price of eco-friendly cars, make the consumer more responsible, speed up the greening of the country's vehicle fleet and stimulate technological innovation in the automobile sector, allowing car manufacturers to create and offer cleaner vehicles".
References:
Ministère de l'Écologie, du Développement et de l'Aménagement Durable: "Le bonus écologique incitera dès aujourd’hui les acheteurs de voitures neuves à se porter vers les véhicules les plus sobres en carbone" - December 5, 2007.
Biopact: The strange world of carbon-negative bioenergy: the more you drive your car, the more you tackle climate change - October 29, 2007
Electric vehicle purchases are rewarded most. In France, electric cars would be very green on a well-to-wheel basis because over 75% of the country's electricity is generated from nuclear sources. Electric cars can also be powered by carbon neutral renewables like biomass, wind or solar energy. In the future, they could even utilize negative emissions electricity obtained from biomass the CO2 of which is geosequestered (so-called 'bio-energy with carbon storage'). In such a case, driving a car would mean actively taking emissions from the past out of the atmosphere (previous post on 'driving in the strange world of carbon negative energy').
The ecobonus starts for vehicles which emit less than 130 g CO2/km, which covers around 30% of current sales. This rebates will be complemented by a 'superbonus' when the buyer offers a vehicle older than 15 years for scrapping. Those who buy a new car that emits more than 160g CO2/km receive a malus; this concerns roughly 25% of all vehicles currently sold in France.
The new mechanism, which constitutes the first application of the ecological 'price signal' strategy proposed by the Grenelle, is purely indicative. It has been created in such a way that the malus finances the expenses needed to cover the bonuses. Therefor, the system does not imply new government expenses or taxes for households or businesses.
The rebates are progressive: the lower the CO2 emissions of the new car, the higher the bonus:
- €1000 for vechiles emitting less than 100gCO2/km
- €700 for vehicles the emissions of which range between 101 and 120gCO2/km
- €200 for cars with modest emission reductions ranging between 121 and 130gCO2/km
- €200 for vehicles the emissions of which range between 161 and 165gCO2/km
- €750 for cars with emissions between 166 and 200gCO2/km
- €1600 for emissions between 201 and 250gCO2/km
- €2600 when the vechiles are extremely climate unfriendly with emissions of over 250gCO2/km
There is no bonus nor a malus for cars the emissions of which are close to the current average - namely between 130 and 160gCO2/km. This 'neutral zone' represents roughly 45% of all new cars sold in France:
energy :: sustainability :: nuclear :: renewables :: biomass :: bioenergy :: greenhouse gas emissions :: transportation :: negative emissions :: bio-energy with carbon storage :: electric car :: France ::
The superbonus of €300 will be paid when the purchase of a new car eligible for a bonus is accompanied by the scrapping of a car older than 15 years. This super bonus comes on top of the already existing eco-boni for the scrapping of old cars offered by auto manufacturers. This system will encourage the withdrawal of old cars from the roads and contribute significantly to reducing air pollution.
In order to promote ultra-clean and efficient vehicles, the French government will also reward those who buy an electric car. A payment of €5000 is foreseen for cars that emit less than 60gCO2/km.
The trehsholds of the bonus/malus system will be tightened by 5gCO2/km every two years, in order to encourage auto manufacturers to produce more and more low emissions vechicles.
The French government hopes to have the legislation for this new mechanism formalized before the end of the year.
With this range of measures, the Grenelle proves its usefulness. The Summit united all stakeholders - industry, civil society, government, non-governmental organisations - with the aim to find compromises on ways to tackle the most urgent environmental matters, in particular climate change. The feebate system will not impact the purchasing power of households, because the operation is budgetary neutral. In total, over 75% of all new vechiles sold in France will benefit either from a bonus or from a tax exemption (on the basis of numbers for vehicle sales in the year 2006.)
The scheme was announced by minister for the environment Jean-Louis Borloo, minister of economic affairs Christine Lagarde and by Eric Woerth, minister of the budget. They think it will "reduce the price of eco-friendly cars, make the consumer more responsible, speed up the greening of the country's vehicle fleet and stimulate technological innovation in the automobile sector, allowing car manufacturers to create and offer cleaner vehicles".
References:
Ministère de l'Écologie, du Développement et de l'Aménagement Durable: "Le bonus écologique incitera dès aujourd’hui les acheteurs de voitures neuves à se porter vers les véhicules les plus sobres en carbone" - December 5, 2007.
Biopact: The strange world of carbon-negative bioenergy: the more you drive your car, the more you tackle climate change - October 29, 2007
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