France should phase out current tax breaks for agrofuels

The Court of Accounts refers to the precautionary principle and recommends "the end of subsidies supporting the production." It argues that these fuels brought hidden costs for motorists. Consumers pay higher prices for blended fuel because of 3 reasons: the lower energy performance of agrofuels (meaning drivers have to consume more per kilometre), the higher cost of making agrofuels compared to traditional fuels and the transfer to the public in pump prices of penalties imposed on fuel distributors for polluting activities.

Additionally agrofuels offer modest energy gains and unclear environmental advantages. As investments in agrofuel production are now mostly paid off, the French government intends to change of strategy. The authorities could help the agrofuel sector by pushing for stricter EU controls against unfair import competition. The agrofuel industry has been quick to respond to the removal of its tax advantage. 

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