Tram in Bordeaux
30 July 2014

Energy transition towards green growth

Ségolène Royal presented a bill regarding energy transition towards green growth to the Council of Ministers. A major text of the five-year term which sets clear objectives and establishes operational tools as well as simple and effective aid to lower France's energy bill and to combat global warming.
Content published under the Government Valls I from 2014 02nd April to 2014 25th August
Combating global warming and reducing France's energy bill, currently standing at nearly €70 billion, is an opportunity to:
  • combat unemployment through green growth;
  • promote new technologies;
  • conquer new markets in the area of renewable energies, clean transport and energy efficiency;
  • improve business competitiveness.
The bill will also make it possible to increase social progress through a better quality of life and health and to lower the country's, as well as that of households, energy bill thanks to energy savings in construction and transport.

The Government is determined to create 100,000 jobs thanks to green growth.

Five clear and voluntary objectives

The Planning Act sets medium and long-term objectives to give visibility and a framework to the joint action of the State, citizens, companies, territories:
  • to reduce greenhouse gas emissions to contribute to the European objective of lowering these emissions by 40% by 2030 (compared to the 1990 reference) and even further to divide it by 4 by 2050;
  • to reduce our consumption of fossil fuels by 30% by 2030;
  • to reduce the nuclear share to 50% of the electricity production by 2025;
  • to shift the share of renewable energies to 32% of our end energy consumption by 2030, or 40% of the electricity produced, 38% of the heat consumed and 15% of the fuels used;
  • to divide our end consumption of energy in two by 2050.
"With this bill, France takes on the most advanced legislation in the European Union", emphasised Ségolène Royal.

An involvement of all the stakeholders based on two pillars

1) The energy savings, notably thanks to the insulation and the energy efficiency of 500,000 homes per year, a project that will benefit the housing sector and the circular economy which transforms waste into raw materials.

The bill mobilises resources that will accelerate and extend the renovation works on housing and buildings to save energy, lower bills and create employment. New constructions of public buildings will set an example in terms of energy and, wherever possible, positive energy. Local authorities will have access to a new "green growth loan" to finance these projects from the Caisse des Dépôts, which will put €5 billion at their disposal. Based on the idea of a single point of service, the energy renovation platforms will become widespread and will offer "works handbooks": advice, audits and financing. With the implementation of a third-part financier, the authorised third-party financing regional companies are granted the possibility to advance the cost for individuals. As of 1 September 2014, households will benefit from a strengthened tax advantage (30%) for all thermal renovation works. And households will no longer be obliged to do all the work at once but will instead be able to do it job by job: windows, roofing, etc. These tax breaks will also be valid for the installation of individual counters in joint properties.

Local authorities will benefit from loans from the Caisse des Dépôts while BPIfrance will intervene among businesses. Social electricity and gas tariffs will be extended to all energies thanks to the energy voucher. Finally, the banks have committed to providing 100,000 zero interest rate eco-loans to individuals.

2) The development of renewable energy resources, which are abundant in all of our territories, in mainland and overseas France.

Positive energy territories will be encouraged through the launch of a call for applications to approve 200 projects aimed at inter-communal bodies. A "zero waste" call for projects for 20 towns or territories will also be launched as of September. A €1.5 billion special fund has been created for this.
Not including the development of wind power, photovoltaics and marine energies, Ségolène Royal (Minister of Ecology, Sustainable Development and Energy) wishes to launch a call for projects for 1,500 bio-gas plants.

The public investment bank (BPIFrance) will grant €800 million in loans to SMEs developing renewable energies every year from now to 2017. It will also propose a total of €340 million in "green loans" for industrial companies undertaking energy efficiency projects.

Finally, to accelerate the development of production and distribution of heat from renewable sources (wood, biomass, waste, etc.), the Heat Fund managed by the ADEME (environment and energy management agency) will be doubled in three years.

In total, to engage the energy transition, €10 billion in funding will be made available over three years.