Dispatch from France | October '24
*** 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
- Gas tax increase divides government – Will the government propose a tax increase on gas? Currently, it is taxed less than electricity, and the subject has divided ministers. Agnés Pannier-Runacher, who is in charge of the energy transition in the French government, amended the finance bill on 11 October in favour of higher gas taxes. Her colleague, budget minister Laurent Saint-Martin, opposed the move. Pannier-Runacher stated it was “important to give coherent price signals between carbon-based and decarbonised solutions.”
- Energy subsidies under threat – Subsidies created to help low-income households pay their energy bills will no longer be paid automatically to all potential beneficiaries, the investigative newspaper Mediapart revealed. The “energy cheques” had benefited 5.6 million low-income households in 2024. Starting in 2025, certain households must now come forward to apply, and if not all eligible households do so, it could save the government close to 1 billion euros, found Mediapart. The opposition parties see it as a way for the state to save money on the backs of people in need. The reform, presented as technical by the ministry of the economy and finance, is designed to avoid duplicate payments, the authorities said.
- Financing for the future of nuclear power in question – The government’s finance bill for the 2025 budget includes a new approach to nuclear energy. Since 2011, France has used the Arenh system – “regulated access to historical nuclear electricity” – to promote competition and alternative operators, though it expires at the end of 2025. The system obliged energy company EDF to sell around a third of the output of its older nuclear power plants (100 TWh) at the knock-down price of 42 euros per megawatt hour (MWh), outside market prices. This ensured other retailers had access to existing nuclear power on similar price terms as EDF itself. The mechanism to replace Arenh has now made it into the finance bill, but key questions on prices remain open, causing industry concerns.
- Nuclear power and rising sea levels – From 17 September to 17 January 2025, a public consultation – organised by the Commission Nationale du Débat Public(CNDP) – invites citizens to express their views on the construction of two new nuclear reactors. Known as EPR2, the two reactors are planned to be constructed at the Gravelines nuclear power plant in the north of France by 2035. However, the site is too vulnerable to rising sea levels, according to a Greenpeace report. The NGO estimates that a total of five power plants near the French coast could be threatened by rising sea levels by 2100, based on the scenario of +4°C by 2100, drawn up by the IPCC and chosen by the government for its adaptation plan. Greenpeace considers this phenomenon to be underestimated.
The latest from France – last month in recap
The latest from France – last month in recap
- Strategy for financing the transition – On 11 October, Michel Barnier presented the French government's first multi-year strategy for financing the ecological transition (Spafte). It calls for public and private low-carbon investments to increase “by 110 billion euros per year by 2030”. The government mainly aims for increases in private-sector investments (households and businesses). In 2022, 20 percent of the public sector’s investments were in low-carbon assets, compared to 13 percent in the private sector, the strategy said. Local authorities will also be called upon to get involved. However, the precise means with which to double investment in the ecological transition over the next 5 years have yet to be defined. A debate will take place in the National Assembly.
- Ecological transition facing budget cuts – Paradoxically, the government’s proposed strategy for funding the ecological transition has been announced against a backdrop of budget cuts that hurt planning in the sector. Cuts include support schemes for vehicle electrification, the Green Fund (supporting local authorities), the French Environment and Energy Management Agency (Ademe) and MaPrimeRénov' (energy-efficiency renovation grants). A total of 1.9 billion euros of the planned cuts affect environmental issues.
- Higher taxes on electricity – The tax on electricity (TICFE), which had been lowered during the COVID pandemic, will be raised on 1 February. The exact amount, which is missing from the finance bill for 2025, will be determined by decree. The measure is expected to generate 3 billion euros in additional revenue next year. However, the government promises that the overall bill will fall by 9 percent for customers on the regulated tariff set by public authorities, pointing to the fall in electricity market prices which will offset the tax increase. 22.4 million households and businesses are subject to the regulated sales tariff. For the remaining 20 percent of the French population who are not, the bill could be higher.
Camille’s picks – highlights from upcoming events and top reads
Camille’s picks – highlights from upcoming events and top reads
- Saving energy versus feeling safe – Some towns have opted to turn off their street lights at night, despite opposition from some residents, showing safety can be a factor in the energy saving equation, a media report found. The article highlights the search for compromises as the lack of lighting had often not led to increases in acts of incivility. In several towns in the Paris region, for instance, people can activate the street lighting as they pass via a geolocated application. Inspiring!
- The future of renewable energies – Renewable energies should account for over 50 percent of the world's power production by 2030, according to the International Energy Agency. This will require investments in order to modernise the grid. The decarbonisation of energy is also seen as a source of economic growth for Europe. This is also supported by a report from Mario Draghi, the former European Central Bank president who was commissioned to look at ways that the European Union could boost the competitiveness of its economy, which advocates for the decarbonisation of industry as a way to keep Europe competitive. France, in dispute with the European Commission due to falling behind on renewable energies, still rejects EU targets. While the EU considers France’s targets too low, the country has preferred to decarbonise its energy systems through nuclear power.
- Coffee or not coffee – As a major coffee consumer, do I need to worry about my carbon footprint? Journalist Nabil Karoui answered the question “does coffee emit as much CO₂ as a steak?” in his newsletter “Human heat” and his conclusion was no. Should coffee drinkers feel completely relieved? It depends on the amounts consumed, and the devil is in the details. The liquid gold of beverages is far from being exemplary – when compared to its rival tea, for example, it’s worse for the environment. Enough to question a consumer’s habits!
All texts created by the Clean Energy Wire are available under a
“Creative Commons Attribution 4.0 International Licence (CC BY 4.0)”
.
They can be copied, shared and made publicly accessible by users so long as they give appropriate credit, provide a
link to the license, and indicate if changes were made.
