France to eliminate ethanol subsidies; French ethanol industry fears the end

The French Government is proceeding with plans to eliminate ethanol subsidies, and observers feel it will spell the end of the industry in the country. France offers a lower tax on ethanol-blended fuel, which makes it competitive with gasoline, but discussions are reported in The Guardian to be very advanced on eliminating the subsidy, or slashing it.

Last month, the European Union reduced subsidies for biofuel crop cultivation after production reached the 2 million hectare threshold. Under the EU program, farmers may receive up to 45 euros per hectare devoted to biofuel cultivation, up to a total of 2 million acres, and 31.5 euros for additional hectares.

The move followed the German government’s elimination of tax breaks for the biodiesel industry.

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