Supporting stable fuel taxes to fund France's green transition

While the return of fuel prices above €2 per liter is painful for many motorists, it also serves an important purpose: financing France's transition to a low-carbon economy. The government has deliberately kept fuel taxes steady rather than cutting them, arguing that lower prices would encourage more driving and delay needed shifts to electric vehicles and public transport. France's carbon tax, included in the fuel price, directly funds investments in renewable energy, rail infrastructure, and home renovation groups and some economists support this approach, noting that high fuel costs send a clear price signal to consumers. According to the French Environment and Energy Management Agency, transport accounts for about 30% of the country's greenhouse gas emissions, and private cars are a major source. Keeping fuel prices relatively high pushes households to consider alternatives: carpooling, trains, or electric vehicles. The government's bonus-malus system for car purchases has already boosted EV sales, and stable fuel taxes reinforce that market. Supporters also point to the social dimension of the tax revenue. The money collected from fuel taxes helps fund the chèque énergie (energy voucher) for low-income households and subsidies for public transport passes in rural areas. Without these taxes, the state would have to cut green programs or raise other levies. For example, the 2024 budget allocated over €7 billion for ecological transition projects, partly financed by fuel taxes. The argument is not that high fuel prices are good for families at the pump, but that reducing taxes would only provide temporary relief while undermining long-term climate goals. Instead, the government has chosen to maintain current taxes and offer targeted aid to the most vulnerable, such as the €100 fuel allowance for low-income workers introduced in 2023. In the context of the summer travel rush, this perspective suggests that the real priority should be expanding affordable low-carbon transport options rather than cutting fuel prices.