05 Apr 2024, 09:30

Camille Lafrance Juliette Portala

CLEW Guide – France awaits key climate legislation, government keeps focus on nuclear

Despite a set of fresh new decarbonisation goals published last year, starting with the progressive phaseout of fossil fuels, France seems more focused on deploying new nuclear reactors – which will likely cost more than expected – than making up for the gap between the development of its clean energy sources and those of other countries in the European Union. Whether the development pace is too slow for some or the targets not ambitious enough for others, the EU executive is keeping France under close watch. The government pledged to pursue its efforts in adapting to climate change with a series of proposals set to be adopted mid-2024. This regularly updated factsheet provides an overview of France's efforts to reach carbon neutrality by 2050. [UPDATES throughout]

Photo by Mat Napo on Unsplash.

With its “CLEW Guide” series, the Clean Energy Wire newsroom and contributors from across Europe are providing journalists with a bird's-eye view of the climate-friendly transition from key countries and the bloc as a whole. You can also sign up to the weekly newsletter here to receive our "Dispatch from..." – weekly updates from Germany, France, Italy, Croatia, Poland and the EU on the need-to-know about the continent’s move to climate neutrality.

Content:

Key background

Major transition stories

Sector overview

*** Please note: You can find a full dossier exploring Franco-German approaches to climate and energy policy and effects on the EU here.***

Key background

France, like all other EU member states, is heavily reliant on fossil fuels, which accounted for almost half of its primary energy consumption in 2022, with oil accounting for 30 percent and natural gas for 15 percent. Coal plays a minor role.
After being the largest net power importer in 2022 on the back of unstable nuclear output, France became the biggest net electricity exporter of Europe in 2023, again showing its role as a key electricity producer in the 27-member bloc.
With around two thirds of France’s electricity being produced by nuclear power, the emissions intensity of the country’s energy sector is lower than those of several other European countries, such as Germany.
A combination of infrastructural issues at its nuclear power plants and the energy crisis last year pushed the government to move ahead with legislation to quicken the deployment of renewables and accelerate the construction of new nuclear reactors. In January, the French government said that the country needed to build more than 14 new nuclear plants – compared to the six planned so far.
The French government is expected to adopt mid-2024 a set of new laws that will constitute its roadmap to reach carbon neutrality and adapt to climate change. It however came under fire when it said that it would postpone the inclusion of renewable energy goals in its proposals, while experts found that France’s renewable deployment pace was too slow to meet EU rules. EU energy commissioner Kadri Simson urged France in February to “significantly raise its ambition on renewable energy sources to at least 44 percent” regarding gross final energy consumption by 2030 and specify clear targets in its National Climate and Energy Plan.
NGOs also revealed that France was Europe’s largest supporter of large-scale “carbon bomb” fossil fuel extraction projects, with French banks having provided 154 billion dollars since 2015 to firms operating the largest projects.
Launched in 2021, the country’s 54-billion-euro investment plan, France 2030, aims at improving the competitiveness of its industry, encourage investments and innovation and support the low-carbon transition, amid other priorities.
France adopted a green industry bill in autumn, which aims at increasing finance for the green industry, facilitate and accelerate the setup of new industries, and develop brownfield sites, as well as making public procurement greener. A green industry investment tax credit (C3IV) was also created as part of the package.

Graph: CLEW/Narawad.

Major transition stories

Fossil fuels – According to data by French NGOs Data for Good and Éclaircies, France is Europe’s largest supporter of “carbon bomb” extraction projects, and – with 154 billion dollars – behind only China and the United States globally.
Climate protests – Climate protests in France have been deemed more radical than in neighbouring countries, which led the French government to say there were risks of public safety following violent protests over megabasins in early 2023. The top French court however cancelled in November the dissolution of environmental activist group “Les Soulèvements de la Terre,” which the government had previously ordered over “eco-terrorism” claims. Plans for drilling eight new oil wells in the Gironde region triggered new protests, as did government plans for the merger of the two bodies responsible for overseeing France’s nuclear power plants (ASN and IRSN) into a single organisation.
Energy sufficiency – Following on from national efforts to save energy and avoid power cuts during the winter 2022, the government proposed an energy sobriety plan across all sectors to ensure further savings (e.g. higher penalties for high-emitting vehicles, speed reductions on highways, or limiting interior temperatures in buildings). However, France cut 1 billion euros of funds from an energy-sufficiency renovation scheme in early 2024.
Decarbonisation strategy – In September 2023, the government unveiled its ecological planning strategy with a view to reducing the country’s emissions based on sufficiency, energy efficiency measures, and the deployment of nuclear and renewable energy. That includes the promise to increase annual public funding from the national budget to finance the transition to a total of 40 billion euros in 2024, and the pledge to end coal power by 2027. The roadmaps which together constitute France’s future energy and climate strategy – that is to say its low-carbon national strategy (SNBC), the PPE 2024-2035, the new planning law (LPEC) and the country’s adaptation plan to climate change (PNACC) – are expected to be adopted mid-2024.
Adaptation strategy – Following a series of heatwaves, floods, wildfires and droughts in recent years, France rebooted its climate change impacts adaptation strategy to include proposals for adaptation to 4 degrees Celsius of warming, the sign that the government is ready to prepare for the worst.
Environmental health – Agricultural workers, who have been protesting across France this year to express their anger over what they see as a poor quality of life, intensified their demonstrations over the EU’s 2023 nature restoration law, which would result in some 4 percent of farmland remaining fallow as member states must introduce environmental measures on a fifth of their land and sea by 2030. In January 2024, the EU executive proposed loosening green farming requirements and a month later, France’s prime minister Gabriel Attal announced a series of measures to ease the agriculture sector’s concerns, including on pesticides, health regulations and subsidies and loans. Meanwhile, the government’s new biodiversity strategy released in November 2023 did not convince all environmental organisations.
Sustainable finance – In October, French legislators backed away from compulsory “Say on Climate” measures which were part of the government’s green industry bill adopted in autumn and would have made France the first country worldwide to require listed companies to consult their shareholders on their climate strategies through such resolutions.
Investment programme – The government plans to invest half of its France 2030 programme aimed at improving its industrial competitiveness for the energy and ecological transition mainly to decarbonise its economy. According to a survey by Business France, the nation maintained last year its economic attractiveness to international investors, who poured money into 205 projects that directly aimed at decarbonising its economy.

Sector overview

Graph: CLEW/Narawad.

Energy

The sector is responsible for about 11 percent of total GHG emissions.
Electricity mix in 2022: 63 percent from nuclear, 13 percent wind and solar, 11 percent hydropower, 10 percent gas.
After recording historic losses due to numerous shutdowns at its nuclear plants that sent France’s output to a 33-year low in 2022, state-owned utility firm EDF bounced back with a 10-billion-euro net profit in 2023, fuelled by a substantial hike in nuclear generation.
Former French energy minister Agnès Pannier-Runacher’s new European alliance of nuclear countries could together have a nuclear power plant capacity of up to 150 GW capacity by 2050. France, which signed in January a long-term nuclear cooperation deal with Sweden to facilitate the construction of new reactors, reiterated calls for the EU executive to put nuclear power on an equal footing with renewables in the bloc’s policies at a time when the country plans to build at least six new reactors. At home, utility firm EDF and the government reached a deal that will allow the group to sell its nuclear power at around 70 euros/MWh after the existing 42 euros/MWh Arenh rate expires in 2026.
In November 2023, the government opened its draft energy and climate roadmap to public consultation. Among the main points, France plans to reduce the share of fossil fuels in its final energy consumption to 42 percent in 2030 and 29 percent in 2035 for a full phase-out in 2050. In contradiction, French banks continue to heavily finance “carbon bomb” extraction projects, NGOs say.
France’s upcoming multiannual energy plan (PPE) is expected to set the following objectives: a reduction in national energy consumption by 30 percent by 2030 from 2012 levels, and by 40 to 50 percent by 2050 from 2021 levels; an exit from coal in 2027 and from fossil fuels in 2050; and an increase in electricity output by 10 percent in 2030 and by 55 percent in 2050, as well as the doubling of low-carbon heat production by 2035 from 2021 levels.
When it comes to low-carbon energy sources, the government plans to hike solar power capacity from 16 GW currently to 54-60 GW in 2030 and 75-100 in 2035; for onshore wind, from 21 GW currently to 33-35 GW in 2030 and 40-45 GW in 2035; for offshore wind, from 0.5 GW currently to 4 GW in 2030 and 18 GW in 2035. For biogas, an increase from 10.5 TWh/year currently to 50 TWh in 2030 and 50-85 TWh in 2035 is planned. Hydroelectric capacity is set to be raised from 26 GW currently to 29 GW in 2035; for renewable heating and cooling, from 183 TWh currently to 299 TWh in 2030 and 330-421.5 TWh in 2035. In total, France expects to produce 560 TWh of decarbonised electricity annually between 2030 and 2035, against 463 TWh currently. Total final energy consumption should hit 1,209 TWh in 2030 and some 1,100 TWh in 2035, against 1,611 TWh in 2021.
The French government has extended a windfall tax on power producers’ revenues until the end of the year. According to sector experts, however, the move threatens to slow down investments in renewable energy sources.
France wants to become a leader in low-carbon hydrogen production. The upcoming energy plan PPE could set a target for 6.5 GW of electrolysers installed in 2030 and 10 GW in 2035. The government previously said that it planned to subsidise green hydrogen production with 700 million euros and introduce tenders for new electrolysis development in 2024. Industry experts have however warned that lower power prices would be needed.
The government also renewed its focus on electrifying transport with incentives to promote electric car use.
Russia’s invasion of Ukraine and cuts to imports of Russian fossil fuels have compelled France to find alternative sources of energy, including renewables. However, despite a continued reduction in gas consumption – which reached a ten-year low in August 2023, the conflict pushed the government to invest in LNG import infrastructure to secure gas supplies. France increased its LNG imports from Russia in 2022/2023 – between January and July 2023, Russia was the second LNG exporter to France at 15.7 percent, behind the United States at 43.9 percent.
In 2023, France overtook Sweden as the largest net exporter of power in Europe, at 50.1 TWh net exports. In 2022, the country was the largest net power importer due to an unstable nuclear output.
France’s two remaining coal-fired plants, which the country fired back up last year will operate until the end of 2024 for 500 hours more than the 1,300-hour ceiling initially authorised in order to avoid winter blackouts. This is permitted by a relaxation of GHG standards. The government plans to convert these to biomass plants by 2027.
Following a government reshuffle in January, Christophe Béchu remained minister for the ecological transition. Energy Transition Minister Agnès Pannier-Runacher’s portfolio, however, passed on to current and future finance, economy and industry minister Bruno Le Maire’s department. The decision sparked worries among environmental groups which say that environment and energy policy would be dealt with by two ministries with opposing interests when there should be a unified approach.

Industry

The sector is responsible for about 18 percent of total GHG emissions.
France’s most energy-intensive industries include steel, chemicals, cements and non-ferrous metals. In 2021, the government published a series of roadmaps to reduce emissions by 26 percent between 2015 and 2030 for the chemical sector, by 24 percent for cement, and by 31 percent for mining and metallurgy. In November 2023, France also managed to have 50 of the most climate-damaging industrial sites agree to collectively cut their emissions by at least 45 percent by 2030.
As part of efforts to decarbonise its industry, the French government intends to scale up clean technology innovation and ensure competitive conditions for national startups and large companies. The sector must diminish emissions from 72 million tonnes of CO2eq in 2022 to 45 million tons of CO2eq in 2030.
In March 2024, the country signed a bilateral agreement with Denmark to establish a framework for carbon transportation and storage. France estimates that carbon capture, storage and reuse could help decarbonise its industry, with a potential 4 to 8 million tonnes of CO2 sequestered each year by 2030, and between 15 and 20 million tonnes of CO2 by 2050.
France’s green industry bill, which was adopted in autumn, aims to support the creation of new sites for green hydrogen, battery production, wind power, heat pumps and solar panels. Inspired by the U.S. Inflation Reduction Act (IRA), the bill includes a tax credit designed to attract industrial investments in green technologies from 2024.
The European Commission has approved over 8 billion euros in French state aid to decarbonise its industry and develop renewable energies.

Buildings

The sector is responsible for about 16 percent of total GHG emissions.
As part of its new decarbonisation roadmap, the government intends to reduce the carbon footprint of construction products and systems and develop low-carbon operation of buildings.
Launched in 2018, France’s energy renovation plan for buildings, known as ‘France Rénov’, is spurring consumers to renovate their homes to reduce energy bills and increase energy efficiency. In its latest energy and climate strategy, the government set an objective of 200,000 annual energy-efficient renovations from 2024, then 900,000 each year by 2030. Energy consumption of commercial buildings is set to be decreased by 40 percent by 2030 and by 60 percent by 2050. But some fear that the government’s recently announced decisions including budget cuts, support schemes reforms and changes to the energy performance diagnosis system could hamper the progress made in cutting buildings’ emissions.
On the other hand, non-residential buildings with a car park of over twenty spaces will be obligated to install charging stations for EVs by January 1st, 2025. The French law also requires that outdoor car parks are partly covered by solar panels, depending on their surface. A wider regulation was adopted in March by the European Parliament, which will require the installation of solar panels on buildings across the EU.
The government finally plans to triple the domestic production of heat pumps over the next four years.

Mobility

The sector is responsible for about 32 percent of total GHG emissions.
France plans to produce one million EVs by 2027. In efforts to on-shore more manufacturing capacity, the government inaugurated the first lithium-ion battery production gigafactory by Automotive Cells Company (ACC) in 2023. Its initial production capacity will be over 13 GWh by the end of 2024, before rising to 40 GWh by 2030.
As part of its new decarbonisation roadmap, the French government is seeking to reduce the automobile sector’s carbon footprint (including heavy vehicles) by decarbonising materials and components, increasing subsidies for domestic output, allowing tax reductions around industrial sites, and favouring the recycling of used battery materials.
The government has announced 30 million euros in funding for two automotive battery recycling projects as part of France 2030. One of them, led by Veolia, Solvay and Renault, was targeting a capacity of 10,000 tonnes in 2023.
The country, which plans to support the adoption of EVs through a financial incentive to switch from combustion engine to electric cars and other measures, is looking to further develop low-carbon liquid fuels, biogas, electricity, and hydrogen to decarbonise its heavy vehicle fleet. In May 2023, the French government banned domestic short-haul flights where train alternatives exist; a move which critics described as “symbolic” at best, arguing that it will only have minimal effects on France’s total carbon emissions.
France will invest 500 million euros of public funds in the coming years to develop low-carbon aircraft, engines and sustainable aviation fuels (SAFs), in addition to planning to build the first low-carbon plane by 2030.

Agriculture

The sector is responsible for about 19 percent of total GHG emissions.
Since the start of 2024, agricultural workers have been protesting across France to express their anger over what they see as a poor quality of life mainly due to heavy workloads and competitiveness-linked constraints that they say translate into low incomes; but also their overexposure to pesticides and overall environmental degradation. Farmers intensified their protests over the EU’s 2023 nature restoration law, which would result in around 4 percent of farmland remaining fallow or rotating crops as member states are required to introduce environmental measures on a fifth of their land and sea by 2030. In January 2024, the EU executive proposed loosening green farming requirements to answer French farmers’ woes about related income losses; the proposals need to be discussed by member states. In February, France’s prime minister Gabriel Attal announced a series of measures to ease the agriculture sector’s concerns, including on pesticides, health regulations and subsidies and loans.

In a group letter, more than 100 scientists said that the French government’s proposals to end the farmers’ protests were “a step backward for the environment and health” as they underlined the importance of reconciling the needs for food of the population with the preservation of biodiverse ecosystems.
The French government is discussing legislation on the future of agriculture (PLOAA) by 2040 in a bid to ensure that new generations are able to adapt to climate change and to the agro-ecological transition.
France also expects the development of biomethane to help reduce the sector’s emissions.

Land use, land-use change and forestry (LULUCF)

The sector had net-negative emissions of about 14 million tonnes of CO2 equivalent in 2020.
Greenpeace has called for a national moratorium on the construction of new livestock and poultry farms.
The carbon storage capacity of forest ecosystems in France has halved in 10 years. According to the government, the country needs to invest up to 10 billion euros over ten years to adapt its forests to climate change.
In June 2023, the Académie des Sciences provided recommendations to better manage France’s forests.

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Dossiers

This Factsheet is part of the following Dossiers:

Climate and energy high on the agenda in run up to 2024 EU parliament elections