Towards green budgeting: a roadmap -- Alexandre Godzinksi, France
Around Green Budgeting:
recent developments in France
Head of the Economic Evaluation and
French Ministry for the Ecological and
Paris Collaborative on Green Budgeting
2nd Green Budgeting Experts Meeting
29 April 2019
Two coordinated exercises
1. A national exercise: shedding light on environmental
dimensions of the yearly Budget Bill with a new “Yellow Book”,
a companion document to the Budget Bill.
2. Investigation on the application of green budgeting in France.
Shedding light on environmental dimensions of
the yearly Budget Bill: observation and action
Report on policy guideline for environmental taxation released in September 2018
(« Comment construire la fiscalité environnementale pour le quinquennat et après
2022 ? »).
Written by a senior economist (Dominique Bureau) and a deputy in the National
Assembly (Bénédicte Peyrol).
First recommendation: creation of a "Yellow Book" to shed light on the environmental
taxation policy of the Budget Bill.
The National Assembly and the Senate decided to create this Yellow Book, a
companion document to the Budget Bill, and dedicated to environmental expenditure
and environmental taxation policy (Law number 2018-1317 of 28th December 2018).
Content of the new “Yellow Book”
Divided in three parts :
I. State environmental expenditures for the current and next
years. Gathering information: interrogation of program
managers in charge of state expenditure in all Ministries, with
thematic shares (climate, air, water, biodiversity…). Consists
mostly in the merging of three previously existing documents,
two « Yellow Books » and one « Orange Book ».
II. Public and private environmental expenditure, alignment with
environmental targets. Mainly new part.
III. Fiscal policy. Includes environmental tax revenue,
environmental tax expenditure and economic effect of
environmental taxes on households and firms. New part.
Cover all environmental pressures.
Collaboration between the Ministry of Environment and the
Sources of inspiration to draft the new “Yellow Book”
Environnemental taxation: an inventory, CGDD, 2017
(« Fiscalité environnementale, un état des lieux »).
Environnemental accounts, CGDD, 2018 (« Les comptes de
Efficiency of tax expenditure related to sustainable
development, Cour des Comptes, 2016, (« L’efficience des
dépenses fiscales relatives au développement durable »).
Landscape of Climate Finance, I4CE, 2018 (« Panorama des
financements climat »).
Effective Carbon Rates, OECD, 2018, and Taxing Energy
Use, OECD, 2018.
Investigation on the application
of green budgeting in France
Ongoing mission assigned to an inspection task force, composed
of members from both the General Inspectorate of Finance and
the General Inspectorate of Environment.
Jointly mandated by the Ministry of Environment, the Ministry of
Finance, and the Ministry of Budget.
Methodological investigation on green budgeting and its
application to France.
Report will be handed out to the three Ministers in summer 2019.