The French government has announced that it will remove tax exemptions on biofuels sooner than the previous 2012 target due to rising prices in other areas.
Biodiesel and ethanol will no longer be partially exempt from France`s national fuel tax, a move which will be implemented in stages from January 2009.
A draft of the country`s budget for next year detailed the changes, saying that the cost of these fuels is now not "structurally disconnected from those of standard fuels".
"Tensions affecting agricultural raw materials have reached levels that no longer justify tax exemptions on the grounds of helping to provide outlets for farm production", the budget stated.
It also said that biofuel investment has now amassed 17.1 billion euros and a predicted saving of 401 million euros will be made next month on the strength of the new plans.
In other energy-related news, president Sarkozy is set to meet with the Indian prime minister Manmohan Singh to discuss the signing of a civil nuclear deal between the two nations.
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