Dispatch from France | February '25
***Our weekly Dispatches provide an overview of the most relevant recent and upcoming developments for the shift to climate neutrality in selected European countries, from policy and diplomacy to society and industry. For a bird's-eye view of the country's climate-friendly transition, read the respective 'Guide to'.***
Stories to watch in the weeks ahead
Stories to watch in the weeks ahead
- The aftermath of the budgetary crisis: With its newly adopted budget, prime minister Francois Bayrou's government aims to save around 50 billion euros this year to enable “financial recovery” and bring the public deficit down to 5.4 percent of GDP – a decrease from 6 percent in 2024. France has also lowered its 2025 GDP growth forecast from 1.1 percent to 0.9 percent. A joint commission composed of lawmakers from both chambers of parliament produced a budget text and Bayrou pushed the 2025 finance bill through without a vote in the National Assembly, using a constitutional provision that allows the government to do so. The opposition far-right National Rally (RN) and the Socialist Party (PS) did not back a vote of no-confidence against Bayrou’s government that was initiated by the hard-left France Unbowed (LFI), despite opposing the budget.
- The geopolitics of French energy supply: Until recently, Kazakhstan and Niger were the leading uranium suppliers for France’s nuclear reactors. Niger’s government in December took control over a uranium mine in the Agadez region, depriving French nuclear power company Orano of its reserves in the African nation. However, these supplies look set to be be replaced by Mongolia soon, highlighting France’s energy dependence on other nations. Russia and Australia are now the leading exporters of coal to the country, a position occupied by Germany until the 1970s. Gas comes mainly from the U.S., Algeria and Russia, whereas oil is supplied from countries across Africa – including from Algeria, Libya and Nigeria – as well as the Middle East and Central Asia. However, France is also a major exporter of electricity: In 2024, exports reached record levels, driven by nuclear and hydroelectric power.
- Concerns about France's energy plan: Work on France's third multi-year energy plan (PPE 3), which sets out the country's energy production and consumption policy for the next ten years, is due to culminate with a final presentation in March. The plan should help to reduce the country’s dependence on fossil fuels by a third in favour of nuclear and renewable energies. On 30 January, the French High Council for the Climate issued a statement underlining that while the current version of the plan is consistent with France's carbon neutrality objectives, it is lacking transparency. The council has called on the government to provide more details on the conditions for phasing out oil and coal and the budget for energy renovation schemes for private individuals (MaPrimeRénov'), as well as to encourage clean mobility. The decision to publish the plan in the form of a decree (decided by the government and not by parliament) is weakening its legitimacy, according to the body. The council highlighted that the plan is not in line with France’s adaptation plan or the National Low-Carbon Strategy (SNBC), which should provide a framework for the implementation of the PPE. It also criticised the lack of a planning law on energy and climate (LPEC).
- France and Germany urged to work together on electricity grid spillover: The decision on how to divide the German and French electricity markets has been postponed until spring. As these two most populous EU countries have a single electricity price nationwide, incentives to buy power at lower regional prices are lacking. This can lead to congestion within the country's grids and can cause disruption in those of neighbour countries. Smaller regional pricing zones could solve this lack of flexibility, as they would change electricity trading patterns, regulators say. Against this backdrop, an analysis by the French Institute of International Relations (IFRI) calls on both countries to address system flexibility, electrification and economic security together. However, this requires them to overcome their disagreements, notably over nuclear power, in the name of consolidating European energy policy.
The latest from France – last month in recap
The latest from France – last month in recap
- Fresh doubts cast over new nuclear power plants: In a report published on 14 January, the French Court of Auditors (Cour des Comptes) stated that France was still “far from ready” from going ahead with the construction of six new EPR2 (Evolutionary Power Reactor2) nuclear reactors. The reactors are due to be built in Penly, Gravelines and Bugey, though financial and technical uncertainties continue to enshroud the project led by state-owned energy company EDF. The company plans to invest in these new power plants in early 2026, depending on whether the government commits to the programme following discussions on the cost. The reactors are scheduled to start operating by 2035.
- Future of French photovoltaic industry looks bleak: France’s final solar panel production plant, Photowatt in Bourgoin-Jallieu, is set to close in a setback for the industrial sector, confirmed shareholder EDF Renewables. Meetings with trade unions began on 4 February, as a closure of the plant means that more than 160 employees could lose their jobs. In a highly competitive market, the plant was running a deficit of 20 to 30 million euros per year. Takeover attempts in recent years have all failed.
- Renewables vs. decarbonised energy: According to Eurostat data, renewable energies accounted for 22.3 percent of France's final energy consumption mix in 2023. This puts France at about EU average (24.5%), but with a higher share than neighbouring Germany (21.5%). More information can be found in the latest French energy report alongside key figures.
- Energy poverty a cause for concern: The rate of energy poverty has fallen slightly over the past ten years in France, thanks in part to energy efficient renovations in the housing stock such as improved insulation and more efficient heating equipment. Nevertheless, according to the Inequalities Observatory (Observatoire des inégalités), the problem still affects almost 11 percent of households. In a report authored by the body based on 2022 data from the National Observatory on Energy Poverty (ONPE), it found that 30 percent of households that spend more than eight percent of their income on energy are considered to be in energy poverty. During the winter of 2022-2023, 26 percent of households say they suffered from a lack of heating compared to 14 percent in 2020.
Camille’s picks – highlights from upcoming events and top reads
Camille’s picks – highlights from upcoming events and top reads
- European inspirations: What if the EU was a place where the exchange of best practices and sources of inspiration was commonplace? A look into Sweden’s “Energy Eldorado” was broadcast by the news magazine Nous les Européens (We the Europeans) on the public channel France 2. The broadcast looked into the country’s low-cost heating for all citizens, its mineral deposits in the north and the establishment of Europe's largest electric battery factory. Food for thought about what could be replicated in France and other European countries.
- Reducing energy bills, but how? Since 1 February, 24 million French households have become eligible for a 15 percent reduction in the cost of electricity. The impact of this measure on everyone's bills will depend on the type of contract and the energy supplier. On 31 January, the France Inter radio programme broadcasted a show on the topic that helps you get your bearings in a complex system. It also looked at energy renovation grants – like MaPrimeRénov to improve the energy performance of homes – for which cuts have already been announced. Instability of the government is also leading to fears of delays in subsidy payments.
- When the nuclear power argument reaches space: Nuclear power is a controversial issue in Europe and beyond. But what if the debate between supporters and critics continued all the way to Mars? Criticised for its carbon footprint, the kerosene in today's rocket engines could be replaced by nuclear power. Another promise: a considerable reduction in space travel times. The nuclear reactor could be carried aboard a conventional rocket and then fired into space. The resistance of radioactive fuel has been tested by General Atomics and Nasa at temperatures of 2,300 degrees Celsius. Critics of nuclear propulsion are already alarmed at the risks of such a rocket taking off from the ground. But the Europeans are not to be outdone: the European Space Agency (ESA) and several industrialists have begun working on a demonstration fission rocket, to be completed in 2035.
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