Highlights on the French Energy Transition towards Green Growth

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Highlights on the French Energy Transition towards Green Growth Conférence «Réglementations climatiques et opportunités économiques Le cadre réglementaire européen à l aune de la COP21», Session 2, Berlin, 19 novembre 2015 Richard Lavergne, Senior advisor to the General Director for Energy and Climate, French Ministry for Ecology, Sustainable Development and Energy richard-1.lavergne@developpement-durable.gouv.fr @mouchezlim 1

France is already one of the most decarbonized EU Member States Total primary energy demand shares by fuel (%) in each Member State, 2012 Fossil fuels share goes from 40% to 99% 2

Nuclear plants in Europe 3

Gross inland consumption (2013): 260 Mtoe Total final energy consumption (2013): 165 Mtoe Electricity 23% Therm. Renew. 9% Coal 3% Oil 45% Transport 30% Industry 26% Agriculture 3% Gas 20% 68% fossil Domestic 28% Services 13% Gross electricity generation by fuel (2013): 575 TWh 4

France is on track to meet its current pledge under the UNFCCC According to the IPCC s 5 th Assessment Report, global emissions due to human activities were 49 Gt CO2e in 2010 and France represented only 1% Projected 2020 French emissions ( Existing Measures scenario, prior to LTECV) are: non ETS emissions: -15% below 2005 level (compared to the EU effort sharing of -14%) ETS emissions: -26 % below 2005 level (vs. -21% EU average target) 55 5

Wind and PV installed capacities in France as connected to the grid at the end of June 2015 Wind (total installed: 9.8 GW) PV (total installed: 6.1 GW) Source: MEDDE/SOeS (installations that have been connected by département) 6

COP21: how being successful? National Contributions (INDC - Intended Nationally Determined Contributions) Finance (Green fund, innovative finance, cooperation, ) Lima-Paris Action Plan / Agenda of solutions, voluntary international initiatives that supplement governemental actions) Mobilisation of the civil society, events, projects, committments, Espaces Génération Climat Exemplarity of the EU, both internally and leadership 7

Vision 1: Current CO2 emissions in various regions of the World (yearly) 8 Source: IEA WEO (2015)

Trillion dollars (2013) Vision 2: Historic CO2 emissions, World Carbon Budget and Low Carbon Investments World CO 2 budget for 2 C ~2300 Gt Average annual low-carbon investment, 2014-2040 100% 2012-2040 2.0 75% 1.5 CCS Nuclear 50% 1900-2012 1.0 Renewables Efficiency 25% 0.5 Share of budget used in Central Scenario 2013 Central Scenario For 2 C target Source: IEA WEO (2014) 9

10 10 10

France made 3 major environmental impetus during the last 10 years POPE Steering Law of 13 July 2005, with quantitative targets up to 2050 Cut of GHG emissions of 3% per year from now up to 2050 and support to Factor 4 at World level Decrease of the final energy intensity of 2% per year from 2015 and 2.5% per year from 2030 Grenelle de l environnement Initiative in 2007-2010 Grenelle 1 Steering Law #2009-967 of 3/8/2009 Ambitious targets for buildings (50 kwh/m²/year for new buildings, - 38% energy cons. for existing buildings, energy audits of State buildings, ) and transportation Application of «Factor 4» and of the EU 3 x 20% Grenelle 2 Act #2010-788 of 12/7/2010 to implement Grenelle 1 Yearly Finance Law: CIDD, Eco-PTZ+, bonus-malus, etc. Energy R&D: PIA, Competitiveness poles, Energy Transition towards Green Growth - on-going process since 2012 National Debate on Energy Transition - from Nov. 2012 to July 2013 Environmental Conference of Sept. 2013 with President Hollande Energy Transition towards Green Growth Act (LTECV) #2015-992 of 17 August 2015 11

Main preoccupations of the French energy policy Article L.100-1 of the Energy code (art. 1, LTECV) 1 Sustain a competitive economy with many jobs 2 Ensure security of supply and reduce dependence on energy imports 3 Maintain a competitive and internationally attractive energy price that allows to keep under control consumer energy bills 4 Preserve human health and the environment 5 Guarantee social and territorial cohesion with a right for all families to access energy at a cost that is compatible with their revenues 6 Fight against energy poverty 7 Contribute to the setting up of an European Energy Union 12

French concept of Energy Transition Minister Ségolène Royal s at the French Ministers Council of 30 July 2014: To better consume together with energy savings less fossil fuels, less transport, more thermal comfort, more energy efficiency (especilly in the industry sector) To produce in a new way, preserving environment more local resources, more renewable energies, less waste To help society go further through mobilizing projects cooperative projects for energy production and innovative services To create new/sustainable jobs, especially in the building sector in the next 3 years, Energy Transition should create 100,000 new jobs in France LTECV should make France one of the EU MSs that are the most dedicated to a low carbon society In the road to Paris COP21, LTECV reflects French ambition in the framework of the climate international negotiations 13

Structure of the Energy Transition towards Green Growth Act (LTECV 17 August 2015) Title I st To define common objectives in order to make Energy Transition a success, to increase French energy independence and to fight against climate change Title II To improve buildings refurbishment in order to save energy, cut energy bills and create jobs Title III To develop clean transports in order to improve air quality and to protect health Title IV To fight against waste and to promote circular economy: from product conception up to recycling Title V To promote renewables in order to diversify our energy mix and to promote territorial resources Title VI To strengthen nuclear safety and citizen information Title VII To simplify and to clarify administrative procedures in order to improve efficiency and competitiveness Title VIII To empower citizens, companies and territories so that they can act together 14

Some outstanding clauses of LTECV (1/2) Many quantitative targets: Cut GHG emissions of 40% between 1990 and 2030 and to divide by 4 GHG emissions between 1990 and 2050 Cut final energy consumption of 20% by 2030 and 50% by 2050 compared to 2012 and to reach 2.5% for the annual fall rate of the final energy intensity by 2030 Cut consumption of fossil fuels of 30% by 2030 compared to 2012 Raise the share of renewables within the gross final energy consumption to 23% by 2020 and to 32% by 2030 Reach at least 10% by 2020 for renewables within the final energy consumption of the transport sector Reach 50% for the share of nuclear in the French power generation by 2025 (compared to 78% today) Limit the authorized total capacity of nuclear power generation to 63.2 GW maximum Install by 2030 at least 7 million charging points for electric and hybrid vehicles Cut municipal waste production per capita of 10% over 2010-2020 and to stabilize volumes of waste coming from economic activities Decouple raw materials consumption and GDP (-30% in 2030) etc. 15

Some outstanding clauses of LTECV (2/2) 2 new governance tools for the French energy policy National Strategy for low carbon development (SNBC) 2015-2028 The Government will impose, by successive 5-years periods, 3 GHG emissions ceilings (carbon budgets) that France should not exceed In order to meet this commitment, the National Strategy will be set up for 3 successive 5-years periods Future national policies for transport, spatial and infrastructure planning and energy production should take it into account Pluri-annual Program for Energy (PPE) 2016-2023 Governmental action plan that defines its priorities to support various forms of energy or energy savings, in line with the SNBC: Energy efficiency and renewables Security of supply Balance between supply and demand Such a PPE will be set up for 2 successive 5-years periods 16

Many measures to accompany LTECV (1/2) Support to thermal refurbishment of buildings Simplification of zero interest loans Eco-PTZ To encourage households to launch works and to increase the number of loans from 30,000/year today to 100,000/year CITE (formerly CIDD) tax credit simplified and increased to 30% of the total expenses, whatever is the thermal refurbishment action Promotion of third party financing to allow advance payment of refurbishment works Development of thermal refurbishment platforms in inter-communalities with the support of ADEME and Regions Active involvement of local authorities Partnership with Regions to implement the energy transition (CPER 2014-2020) New long term loans for energy transition and green growth from CDC to help local authorities: 5 billion fund Special fund for Energy Transition of 1.5 billion to reinforce support to exemplary local initiatives, such as: Call for initiatives 200 Positive-energy areas for green growth (TEPCV) Call for projects Zero waste territories Call for tenders to install 1,500 biogas plants in rural areas Call for Breathable Cities etc. 17

Many measures to accompany LTECV (2/2) Active involvement of companies, support of research and innovation, professional training Launch of Industrial Plans that contribute to Energy Transition For instance: Sustainable cities, Ecological mobility, Transport of the future, Volunteer companies will get easier access to financing their activity or innovation (loans, tax credit, ) Plan for professional training for jobs in eco-building and thermal refurbishment Each year 25,000 professionals in the building sector have to be trained until 2017 Setting up of a National strategy for energy research in 2016 Priorities to invest in public RD&D 18

To sump up: 5 main action principles in the French Energy Transition Promote demand side management, energy efficiency and sober energy use, especially in buildings Involve citizens, companies and territories (local authorities) Ensure transparency and information for all, especially on energy costs and prices Diversify the energy mix To limit the use of fossil fuels To diversify - in a balanced way - the electricity mix To increase the share of renewables in the final energy consumption Develop energy Research and Innovation To develop mobility means and energy storage according to needs 19

For more details: DGEC 2015 Report Panorama énergies climat (French and English versions) www.developpement-durable.gouv.fr/sortie-du-rapport-panorama.html MEDDE website www.developpement-durable.gouv.fr/-la-transition-energetique-pour-la-.html Thank you for your attention! 20