www.developpement-durable.gouv.fr

Ministère de l'Écologie, du Développement durable, des Transports et du Logement

Olivier Ginepro

Economic Counsellor

Regional Economic Department, Embassy of France

Tokyo, Japan

TOKYO, 4th August 2016

FRANCE’S LONG TERM ENERGY STRATEGY AND

THE IMPORTANCE OF CARBON PRICING

Outline

Key figures in France

The debate for an energy transition and green growth: the main guidelines

The carbon pricing

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The French Energy Mix

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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.

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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

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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 2013-2014, yet represented 2.4% of global GDP in 2013.

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The new Energy Transition Bill (1)

40% 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

Reducing the share of nuclear in electricity

production to 50% by 2025.

Reduce by 50% the final energy consumption by

2050, compared to 2012.

Reduce by 50% the amount of waste by

2025

To achieve the long term goal: 75% emissions reduction from 1990 level by 2050

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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

The new Energy Transition Bill (2)

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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

RES-E

Offshore wind objective :

6 000 MW in 2020

The new Energy Transition Bill (3)

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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

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The French carbon budget

Greenhouse gases emissions by sector :

Waste disposal Energy

Industry Agriculture

Infrastructure Transportation

The carbon budget for the periods of 2019-2023 and 2024-2028 are respectively of 399 Mt of CO2 per year and 358 Mt of CO2 per year.

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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 2030. (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.

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The importance of carbon pricing (2)

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

Establishment of a carbon « bottom price » for electricity production at the European scale

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Nuclear remains the backbone of the French energy mix

The share of nuclear is slated to decrease from 75% to 50% by 2025. 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

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Thank you for your attention

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