This archive report was first published on 16 November 2019.
On November 15, 2019, France's National Assembly held a second vote on the inclusion of palm oil in a list of biofuel sources eligible for tax breaks until 2026. The vote resulted in 58 MPs opposing the inclusion, while only two voted in favor.
Prime Minister Edouard Philippe called for the second vote after lawmakers expressed concerns that they had not been adequately informed about the tax break. This move reversed an amendment to the 2020 budget passed by the lower house on Thursday.
Environmentalists had strongly opposed the inclusion of palm oil, citing its role in deforestation. The Amis de la Terre (Friends of the Earth) advocacy group described the tax break as a 'fiscal present' valued at 70-80 million euros ($77-$88 million).
Lawmakers from the region where the refinery is located had sponsored the amendment to include palm oil, despite an unfavorable opinion from the budget legislation's rapporteur, Joel Giraud. Giraud described the situation as 'we got screwed.'
Former environment minister Delphine Batho stated that the tax break was 'complicit with ecocide -- we cannot support that.'
Total Lawsuit ¶
Oil giant Total had filed a lawsuit against the parliament's decision last year, arguing that lawmakers had unlawfully singled out palm oil. The company's CEO, Patrick Pouyanne, stated that the tax break was necessary 'just to be able to compete with our European rivals who, unlike us, enjoy a tax advantage until 2030.'
