France to lower EV premium and sharpen CO2 penalty
As expected, the French government has announced the premiums for an electric car for private use with a list price below €45 000 to drop. From €7 000 this year to €6 000 in 2021, and further to €5 000 in 2022. This was made official by the Minister of Economy, Bruno Le Maire, on Monday.
The premium for plug-in hybrids (PHEV) remains €2 000 until the end of this year and is halved to €1 000 in 2021. For the time being, the scrap premium of €3 000 for households with the lowest income wanting to switch to a less polluting car, is to be maintained.
The so-called ‘malus’ or threshold for CO2 penalties enforced since February for all vehicles emitting more than 138 g/km will be lowered to 131 g/km in January 2021 and to 123 g/km in 2020.
Penalty up to 20 000 euros
Until last year, the maximum CO2 penalty was 12 500 euros for cars surpassing 173 g/km. From 2020 on, ‘gas guzzlers’ with powerful engines that emit more than 184 grams of CO2 per km can be taxed under this system up to 20 000 euros or more.
For the premiums, the French government foresees €500 million out of the total budget of €1,9 billion to support the demand for more sustainable vehicles. According to Le Maire, the market share of private electric vehicles has passed from 1,9% in 2019 to 6,1% in 2020 in France. A sign, says the minister, the supporting premium system “has worked”.
A possible tax on the vehicle’s weight, proposed by the Citizens Climate Convention, and heavily contested by the car industry, didn’t make it into the budget (yet). But it could surface in a new bill mid-December, according to the Ministery of Transition.