Biofuel quota (Reduction of the tax on polluting activities (réduction de la taxe générale sur les activités polluantes)

Updated: 07.02.2019

Author: Helena Vidalic

The act on energy transition of 2015 sets a target of 10% renewable energies in the total energy consumption of the transport sector by 2020 and of at least 15% by 2030 (Art. 43, Loi n°2015-992; Art L641-6, Code de l’Énergie). More precisely, the targets for biofuels were set as follows (Art.3, Arrêté du 24 avril 2016):

  • For biomethane used as fuel in transport: Consumption targets of 0.7 TWh by 2018 and 2 TWh by 2023
  • For the blending of advanced biofuels with petrol and diesel: 
    • In petrol: 1.6% by 2018 and 3.4% by 2023
    • Diesel: 1% by 2018 and 2.3% by 2023

In order to reach these targets, the quota of biofuels to be blended within conventional fuels is defined for each fuel type. In case companies releasing fuel for consumption do not respect the biofuels quota, they are submitted to a higher rate of the tax on polluting activities (TGAP) (Art. 266 quindecies, Code des Douanes). 

Eligible technologies

Subject to the obligation are only biofuels.

Biofuels

Eligible

Amount

Amount of quota and period of application

The following rates apply:

  • Premium unleaded gasoline SP95 and SP98 shall contain 8% volume/volume (v/v) of bioethanol (Annex I, Arrêté du 23 décembre 1999 gasoline)
  • Premium unleaded gasoline SP95-E10 shall contain 10% v/v of bioethanol (Annex I, Arrêté du 26 janvier 2009)
  • Diesel oil shall contain 8% v/v of biodiesel (Methyl esters of fatty acids) (AnnexI, Arrêté du 23 décembre 1999 diesel)
  • Superethanol E85 shall contain between 65% and 85% v/v of bioethanol, according to the season (Annex II, Arrêté du 28 décembre 2006)

Moreover, the diesel oil B30 has to be blended within a range of 24% and 30% v/v of biodiesel for captive fleet automobiles (Annex I, Arrêté du 29 mars 2016)

Adjustment of quotas

The French Government may adjust the quotas by law in order to reach the targets set by the national biofuels development plan.

Fees and penalty charges

In France, energetic products are subjected to a tax on polluting activities called TGAP (Taxe Générale sur les Activités Polluantes). The amount of the TGAP on fuels is defined until 2017. It amounts to between € 3.99 and 67.39 in 2016 and € 6.50 and € 68.34 in 2017 according to the fuel type (Art. 265, Code des Douanes). Providers of petrol or diesel fuels are subjected to an increased rate of TGAP if they release fuel products for consumption with a lower proportion of biofuels than stipulated by law (Art. 266 quindecies, Code des Douanes). As a matter of fact the increased rate of TGAP, which amounts to 7,5% for petrol and 7.7% for diesel, is reduced according to the proportion of biofuels contained in the fuel sold (Art. 266 quindecies, Code des Douanes). 

Addressees

Eligible to the reduction of the tax on polluting activities are persons who release fuel products for consumption (such as refiners or supermarkets), provided the latter contain a proportion of biofuels (Art. 266 quindecies, Code des Douanes).

Procedure

Process flow

The companies releasing fuel for consumption shall submit a tax return along with the payment of the tax as described in article 95,§4 of the Customs Code. The documents shall be sent to the local customs office collecting the tax for road vehicles before 10 April of each year. The certificates justifying the calculation of the tax shall be submitted as well (Art. 266 quindecies, Code des Douanes). 

Competent authority

The competent authority is the French customs administration.

Distribution of costs

Consumers

The tax on polluting activities is paid by the final fuel consumer.