The French government decided that a new carbon tax to fight global warming will go into force in July, a week after the constitutional court struck down a previous version of the measure.

President Nicolas Sarkozy told the council of ministers that the revamped tax would be presented to the Cabinet later this month and that it would go into force on July 1, government spokesman Luc Chatel said.

The Constitutional Council declared the tax illegal, just days before it was to kick in, dealing a severe blow to Mr Sarkozy who championed the measure aimed at encouraging French consumers to stop wasting energy.

The court ruled that too many exemptions to the tax on carbon dioxide emissions created inequalities and unfairly placed the burden of cutting down wasteful energy use on a minority of consumers.

The Council said more than 1,000 of France's top polluters would have been able to dodge the tax and that the legislation did not apply to 93 per cent of emissions from industrial sources.

Under the first law, the new levy on oil, gas and coal consumption had been set at €17 per tonne of carbon dioxide emissions.

Finance Minister Christine Lagarde suggested on Tuesday that industry could be subjected to the carbon tax, but at a separate rate, to ensure companies are not penalised with a heavy tax burden.

The new Bill will be drafted following consultations with industry, which was exempt from the first version, and submitted to Parliament, where Mr Sarkozy's party holds a majority, Mr Chatel said.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.