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France's ‘Energy and Climate’ Bill


Published 14 Octobre 2019



The French government has set an ambitious goal for France to become a carbon neutral country by 2050. The Climate Energy Act targets in particular the development of renewable energies and the emissions due to residential heating and the lack of thermal insulation.

The Energy and Climate law proposed by Emmanuel Macron’s government was definitively adopted by parliament on 11th September. The new law sets a “net zero emission” target for France by 2050. This ambitious challenge implies that all the CO² emissions of the country will have to be offset by an equivalent absorption of CO².

 

A low-carbon strategy…

After having banned the exploration of hydrocarbon deposits in France through the 2017 hydrocarbon law, the French government is pushing for the closure of the last coal-fired power plants in France by 2022, the implementation of a “National Low Carbon Strategy”, as well as financial aid to encourage consumers to switch to electric vehicles or abandon oil-fired boilers for more ecological heating methods.

In order to be able to place France on the path towards “carbon neutrality”, the government has launched its draft for the energy and climate bill in order to reduce France’s dependence on fossil fuels and increase the share of renewable energies. The bill contains various measures to support the development of renewable energies: hydrogen support, removal of obstacles to the installation of photovoltaic panels on roofs and on abandoned motorways, increase in offshore wind turbine capacity… The text also provides for the creation of renewable energy communities to develop projects led by citizens or local authorities.

 

Fight against inefficient housing insulation, thermal refurbishments

The 3-step program of the Energy and Climate Act to banish so-called ‘thermal strainers’, sets a thermal renovation plan and sanctions against energy inefficient housing. In article 3 of its law, the government proposes a series of measures to reduce the consumption of these energy-intensive buildings, which are major source of greenhouse gas emissions.

The plan targets in particular rented housing whose unsatisfactory thermal insulation results in high energy consumption for heating. Gradually, the owners of energy-inefficient housing will be offered incentives toward the thermal renovation of their housing. Then, from 2023 onwards, they will be prohibited to increase their rent if they have not carried out the renovation work; finally, after a period of five years, they will be fined if their housing does not meet the proper criterium. The Government will also set a five-year roadmap for the refurbishment of every housing with incentives.

 

A new monitoring tool for a green transition

Another milestone is the creation of a High Council for Climate that will monitor France’s effort in its climate policy. The Council will evaluate the gradual implementation of a “green budget”, the impacts of the 2020 finance bill on climate change and the relevance of the government initiatives. This council will also monitor companies to assess their compliance with the new ecological standards.

The law also reinforces transparency obligations for financial actors, to compel them to provide their customers with clear information on the environmental impact of their savings.

The bill was finally adopted on September 11th by the French Parliament.