In 2014, France halted an eco-tax for heavy goods vehicles due to protests, but it’s now being revived, particularly in the Grand Est region, with plans to implement it by 2027. Alsace’s ‘R-Pass’ will charge €0.15 per kilometer for trucks over 3.5 tons. While aiming to fund road maintenance and manage traffic, concerns arise from local business leaders about potential job losses and negative economic impacts, prompting the CEA to consider compensation and exemptions for affected sectors.
The Return of the Eco-Tax for Heavy Goods Vehicles
In 2014, the French government shelved plans for a national eco-tax aimed at heavy goods vehicles following significant protests from the ‘Red Caps’ in Brittany. However, this concept is resurging in various regions, particularly in the Grand Est area, which is looking to introduce the tax by 2027. The primary goal of this initiative is to generate funds for essential road works and maintenance.
Alsace’s R-Pass Initiative
Alsace, under the European Collectivity of Alsace (CEA), which includes the departmental councils of Bas-Rhin and Haut-Rhin, has also approved the implementation of this eco-tax, targeting the same timeline. Dubbed ‘R-Pass’, this tax is set at €0.15 per kilometer for trucks exceeding 3.5 tons that traverse a north-south route through Alsace (A35 and A36). An impact assessment predicts that this measure could yield approximately €64 million annually.
Many foreign trucks currently opt for longer routes through France due to lower costs. The eco-tax aims not only to maintain the road infrastructure but also to manage traffic flow in the region. Reports indicate that between 60% and 90% of heavy goods vehicles on the targeted routes are foreign. This trend is attributed to similar taxes in neighboring countries like Belgium, Luxembourg, and Germany, where a tax has been in effect since 2005, currently set at €0.34 per kilometer.
The influx of additional trucks brings along increased pollution, noise, and accelerated deterioration of roads in France. According to Frédéric Bierry, the president of the CEA, the rise in Germany’s tax has led to a nearly 20% increase in traffic during the first six months and a staggering 30% surge in traffic during August and September on the north-south highway network in Alsace. He emphasized, “Our territory is becoming a truck magnet, a receptacle for all international transit.” Bierry estimates that more than half of the eco-tax revenue will come from transit traffic rather than local Alsatians.
A portion of the funds generated from this tax will be allocated to road maintenance, including upgrades to the highway connecting Colmar to Sélestat, while another share is promised to support the local economy. However, various local business leaders and representatives from transport and agriculture sectors express concerns about the tax’s potential adverse effects on Alsatian enterprises.
Concerns Over Economic Impact
Protests against the eco-tax have already occurred, yet the CEA voted in favor of its implementation last October. The presidents of the Chambers of Commerce, Agriculture, and Trades in Alsace—Jean-Luc Heimburger, Denis Nass, and Jean-Luc Hoffmann—expressed their dismay, stating, “We do not understand why the CEA is imposing a new risk on our businesses and employment with this tax.” Based on the impact study, they project that this taxation could result in a loss of approximately 1,500 jobs in the transport sector in Alsace.
In response to these concerns, the CEA has pledged to allocate a portion of the tax revenue to support the local economy and has committed to establishing compensation measures for affected businesses, as well as exemptions for specific sectors. Ongoing consultations are aimed at determining how this tax will be implemented effectively.