France adopts final version of energy transition law

The French Parliament has finally adopted the law on energy transition ("loi transition énergétique"), retaining most of the targets adopted in a first reading in October 2014. The law includes a cap on nuclear power generation capacity at its current 63.2 GW, which will force EDF to shut down its other nuclear reactors to commission its Flamanville EPR project, and a reduction of the share of nuclear power in the French power mix, from the current 75% to 50% in 2025. Final energy consumption will have to be halved by 2050 (-20% by 2030) compared to 2012 levels, renewable power generation will have to increase to reach 40% of total electricity generation and 32% of energy consumption. Fossil fuel consumption will have to decrease by 30% compared to 2012 level. France also aims to cut greenhouse gas (GHG) emissions by 40% by 2030 compared to 1990 levels and to decrease them fourfold by 2050. The law sets a long term target for the carbon tax, rising from €14.5/ton to €56/ton in 2020 and €100/ton in 2030.

France will invest in energy efficiency, with building renovations made mandatory for all private residential buildings; new public buildings will have to be energy-positive meet high environmental performance criteria. In the transportation sector, governmental institutions will have to renew half of their vehicle fleet with low-emission cars; the share of low-emission vehicles will be set at 10% for taxis and car renters, while large companies (above 100 employees) will have to establish mobility plans.

These measures are expected to create 100,000 jobs in green sectors. France will offer €10bn in public assistance, through tax credits, zero-interest loans or bonuses to encourage building thermal renovation and the substitution of diesel cars by electric vehicles.