FRANCE S LONG TERM ENERGY STRATEGY AND THE IMPORTANCE OF CARBON PRICING

Transcription

1 FRANCE S LONG TERM ENERGY STRATEGY AND THE IMPORTANCE OF CARBON PRICING TOKYO, 4 th August 2016 Olivier Ginepro Economic Counsellor Regional Economic Department, Embassy of France Tokyo, Japan Ministère de l'écologie, du Développement durable, des Transports et du Logement

2 Outline Key figures in France The debate for an energy transition and green growth: the main guidelines The carbon pricing 1

3 The French Energy Mix 2

4 Electricity facts and figures Net production of electricity in 2015 : 546,0 TWh Nuclear power : 416,8 TWh = 76,3 % of the total electricity production Conventional Thermal : 34,1 TWh = 6,2% Hydraulic : 58,7 TWh = 10,8% Wind : 21,1 TWh = 3,9% Solar PV : 7,4 TWh = 1,4 % More than 90 % of the electricity production is low carbon (no significant CO2 emissions) France has exported 91,13 TWh in 2015, while importing 29,6 TWh. 3

5 Rationale for a new law on energy transition Defining long term objectives in the framework of a transition to a low carbon economy and energy system Mobilizing stakeholders Opportunity for job creation and green growth Competitiveness and energy bill Territorial challenges 4

6 Mid- to long term Greenhouse Gas Reduction Target To cut its greenhouse gas emissions fourfold between 1990 and 2050 France was one of the first countries to make a long term commitment and to align itself with the IPPC s recommendations to limit the average global temperature rise to 2 C. To cut its emissions by 40% between 1990 and 2030 France accounted for just 0.9% of global emissions in , yet represented 2.4% of global GDP in

7 The new Energy Transition Bill (1) To achieve the long term goal: 75% emissions reduction from 1990 level by % reduction of GHG emissions by 2030 (compared to 1990 levels) Reducing by 30% the fossil fuels consumption by 2030 consumption by 2030 Increasing the share of renewables to 23% of the final energy consumption by 2020 and to 32% by 2030 Reduce by 50% the final energy consumption by 2050, compared to Reduce by 50% the amount of waste by 2025 Reducing the share of nuclear in electricity production to 50% by

8 The new Energy Transition Bill (2) High priority on energy savings Energy efficiency in buildings Thermal Regulation for new buildings Refurbishment plan for housing Energy efficiency in transports Development of Electric Vehicles and Plug-in Hybrid Electric Vehicles Development of car-sharing initiatives using electric vehicles supports innovation on advanced renewable fuels 7

9 The new Energy Transition Bill (3) Renewable energies: Objectives for 2020 and new objectives for 2030 EU objective : 20% of final energy consumption from renewable energy sources in 2020 (up from 8,4% in 2005) French objective : 23%, equals to an additional 20 Mtoe by 2020 Energy transition Bill: new objective of 32% RES in 2030 Offshore wind objective : MW in 2020 RES-E 8

10 The new Energy Transition Bill (4) New policy tools: 5-years carbon «budgets» and national low carbon strategy (SNBC) Multiannual energy program (PPE) Electricity mix management tools 9

11 The French carbon budget Greenhouse gases emissions by sector : Waste disposal Energy Industry Agriculture Infrastructure Transportation The carbon budget for the periods of and are respectively of 399 Mt of CO2 per year and 358 Mt of CO2 per year. 10

12 The importance of carbon pricing (1) In domestic market Integrate a carbon component in energy taxation to encourage efficiency and the development of renewable energy in the transport and construction sectors. France has a carbon tax implemented since 2014 at the rate of 7 per ton of CO2 with a trajectory of 56 per ton of CO2 in 2020 and 100 in (current carbon tax rate is 22 per ton of CO2) In international market At EU level, France suggests to put in place a price corridor («soft price collar») on the European carbon market (EU-ETS). This is not about replacing the market with a tax, but maintaining market prices between a minimum and a maximum to reduce volatility and improve visibility. 11

13 The importance of carbon pricing (2) Establishment of a carbon «bottom price» for electricity production at the European scale A carbon bottom price for the European electric sector: CO2 emissions reductions targets A long-term and structuring visibility on carbon price Increase investments in low-carbon solutions A consistent and lasting regulations in Europe Managed electricity prices 12

14 Nuclear remains the backbone of the French energy mix The share of nuclear is slated to decrease from 75% to 50% by The installed nuclear capacity will be capped at its current level (63,2 GW) France intends to maintain its position as one of the world references in nuclear It reflects the long-term commitment of our country in nuclear technology, that comes together with an ambitious support to the development of renewable energies ; France is involved in the promotion of the highest nuclear safety standards : in the multilateral fora (IAEA, ) at the European level, with the current negotiation of a Directive for an enhanced framework for nuclear safety 13

15 Thank you for your attention 14