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June 2006, updated in October 2007 France’s action in favour of sustainable energy policy Recent developments As a country with limited fossil fuel resources (oil, gas and coal), France has, since 1945, been conducting a policy designed to increase its energy independence. Specifically, this has led to its adoption of nuclear power generation in the wake of the two great oil crises. In the 1990s, this policy was continued in a context modified by rising oil prices and the concern for protection of the environment (the danger of climate change). France thus entered into commitments both internationally (signing the Kyoto Protocol in 1997, aimed at reducing emissions of greenhouse gases) and at the European level. France began a national energy debate (2003) and adopted the Climate Plan (2004), which gathers together the steps taken by the government to meet the Kyoto targets. Law 2005-781 of 13 July 2005 defining an ongoing programme and focuses for energy policy is the legislative instrument to shape French energy policy. It is aimed at preserving security of supply while at the same time taking due account of environmental concerns: • It lays down four long-term goals: to contribute to national energy independence; to guarantee competitive energy pricing; to protect human health and the environment, specifically by combating any worsening of the greenhouse effect; and to guarantee social and regional cohesion. • It defines four major focuses for energy policy: control of demand for energy, diversification of available energy sources, development of research and innovation in the energy sector and guaranteeing the availability of the means for energy transmission and storage to meet what is needed. © Ministère des Affaires étrangères et européennes / French Ministry of Foreign and European Affairs, 2007 • – – – It lays down quantified targets, specifically: Cutting C02 emissions by 75% by 2050, An average reduction in energy intensity (i.e. the ratio between total energy consumption and GDP for a given year) of 2% per year between now and 2015 and 2.5% annually thereafter up to 2030, Production of 10% of energy requirement from renewable sources. Law. 2006-1537 of 7 December 2006 on energy sets out the scope for the opening up of energy markets which allows consumers to choose freely their natural gas and electricity supplier. The main focuses of French energy policy with regard to sustainable development MAINTENANCE OF THE NUCLEAR OPTION The law of 13 July 2005 provides for the maintenance of the nuclear option (which generates 78% of power in France) since this contributes to the combat against the greenhouse effect and already enables France to point to one of the lowest CO2 emission rates of any OECD nation. It provides for support for the EDF’s request for permission to construct a new type of reactor, the EPR (European Pressurised Water Reactor) on the Flamanville site by 2012. REDUCTION OF ENERGY CONSUMPTION Commencing in the wake of the great oil crises, the French Government’s action in favour of energy savings has led to a raising of the awareness of the general public (through advertising campaigns, inclusion in school study programmes), incentive and fiscal measures, and the provision of resources for intervention and studies through ADEME (Agence de l’environnement et de la maîtrise de l’énergie / French Environment and Energy Management Agency). One of the flagship measures in the July 2005 law is the creation of energy efficiency certificates, a demanding scheme aimed at saving energy in the residential and service sectors. INVESTMENT IN CLEAN ENERGY The production of energy from renewable sources (water, wood, urban waste, wind, biofuels) is among the key components of French energy policy led by DGEMP (Direction générale de l’énergie et des matières premières / General directorate for energy and raw materials) at the Ministry of Finance, the Economy and Industry. And indeed, France is the biggest renewable energy producer in Europe, followed by Sweden and Italy. The July 2005 law sets ambitious targets: an increase of 50% in the production of electricity from renewable sources by 2010, and 2% inclusion of biofuels and other fuels from renewable sources by the end of 2005, followed by 5.75% by 2010 (now brought forward to 2008). The Government has put a number of incentive and fiscal measures in place: payment of half the cost of solar energy panels purchased by private individuals; a 50% increase in biogas procurement prices from June 2006; financial incentives for the purchase of clean vehicles (electrical, hybrid, gas). The Government provides encouragement for research and development, especially through two agencies: the ANR (Agence Nationale pour la Recherche / National Research Agency) and the AII (Agence pour l’Innovation Industrielle / Industrial Innovation Agency), where this is likely to help the development of projects such as fuel cells or clean cars. And lastly, the energy label, mandatory since 10 May 2006, is aimed at encouraging private citizens to prefer to purchase cars that emit less C02. © Ministère des Affaires étrangères et européennes / French Ministry of Foreign and European Affairs, 2007 2 To find out more GENERAL Les perspectives énergétiques de la France à l'horizon 2020-2050, Jean Syrota, Centre d'analyse stratégique, octobre 2007 Résumé : http://www.strategie.gouv.fr/IMG/pdf/resume.pdf Texte intégral du rapport : http://www.strategie.gouv.fr/IMG/pdf/ENERGIE_Rapport_SYNTHESE250907VF2.pdf The web portal for the DGEMP (General directorate for energy and raw materials) at MINEFI (Ministry of Finance, the Economy and Industry) http://www.industrie.gouv.fr/energie/sommaire.htm Energy policy: the Documentation française dossier, on the Vie-publique website (December 2005) http://www.vie-publique.fr/politiques-publiques/politique-energie/index/ Overview of the law of 13 July 2005, on the DGEMP website: http://www.industrie.gouv.fr/energie/politiqu/synthese-loi-13-7-05.htm Climate change: A major challenge, on the Ministry of Ecology website http://www.ecologie.gouv.fr/rubrique.php3?id_rubrique=960 “Energy” section of the Climate Plan (2004), on the French Ministry of Ecology website: http://www.ecologie.gouv.fr/IMG/pdf/plan-action-4-4.pdf Overview of the steps taken to accelerate the development of clean energy sources, statement by the French Prime Minister (15 May 2006), on the Prime Minister’s website: http://www.premier-ministre.gouv.fr/information/actualites_20/energiepolitiquedeveloppement-durable_55986.html KEYS STATISTICS Energy Statistics for France (DGEMP): http://www.industrie.gouv.fr/energie/statisti/se_stats.htm Renewable energy sources in France in 2005, an annotated overview (DGEMP): http://www.industrie.gouv.fr/energie/renou/textes/se_bilan.htm BIBLIOGRAPHY French Energy Policy, Regards sur l’actualité, 318, Documentation française, February 2006, dossier pp. 5-73 © Ministère des Affaires étrangères et européennes / French Ministry of Foreign and European Affairs, 2007 3