Policies in France

France has published its National Energy and Climate Plan for 2030 on July 10, 2024. This plan describes how France intends to meet its climate objectives by 2030. France will have to reduce its greenhouse gas emissions by 5% each year between 2023 and 2030.

The Energy and Climate Plan is based on several regulatory texts:

The Multiannual Energy Program for 2024-2033 (PPE3), which sets out the priorities for public action in the energy field for the next 10 energy sectors, was submitted for consultation in November 2024. 

The National Low-Carbon Strategy (SNBC3), which is a guide for all sectors of activity towards a low-carbon economy by 2050. 

The National Climate Change Adaptation Plan (PNACC3) aims to identify the measures necessary to adapt mainland France and overseas territories to global warming by 2100. 

In addition, the following pieces of legislation are relevant to the energy sector in France:

Energy Transition for Green Growth Act (Loi relative à la transition énergétique pour la croissance verte - LTECV)

This Act aims to take action on the climate by setting quantified targets and means of action for France to implement the Paris Climate Agreement of December 12, 2015. More specifically, in the areas of housing, construction, and regional governments, it aims at:

Reducing greenhouse gas emissions and energy consumption in buildings;

Accelerating energy renovation of homes;

Fighting household energy poverty;

Promoting the use of renewable energy and sustainable materials for construction;

Strengthening the role of local authorities in mobilising their territories and reaffirming the region's leadership role in the field of energy efficiency.

Energy Code (Code de l'énergie), which brings together various provisions relating to energy law.

Climate and Resilience Law (Loi Climat et Résilience).

The French State supports the RES-E sector with several schemes. The most widely adopted tools - in terms of technologies supported – are the feed-in tariff and the premium tariff. Tenders for issuing feed-in and premium tariffs are also one of the largest support schemes in France. 

In the NECP, the French government has set a target of 40% for the share of renewable energies in final electricity consumption by 2030.

• Feed-in tariff: a minimum price is paid to the renewable energy plant operator by the supplier for the electricity exported into the grid.
• Premium tariff: paid to renewable energy producers in order to compensate for the difference between the income from energy sale and a reference level of remuneration, set by decree depending on technology and size of the plant.
• Tenders for issuing feed-in and premium tariffs: the PPE lays out the objectives for calls for tenders for 2023 and 2028.
• Over-the-counter contracts for energy purchase to compensate for the additional costs linked to energy purchase contracts on the non-interconnected islands.

• Ministère territoires écologie logement
• Ministère de l'économie et des finances

The subsidy for biogas and solar thermal technologies (fonds chaleur) is the main support scheme for RES-H&C on the national level in France. It is a subsidy administered by ADEME and is targeted towards biomass and solar thermal technologies. There is also a Regional scheme for the subsidy, which is administered by ADEME in the form of regularly launched calls for projects aimed at local authorities and companies wishing to develop systems for producing heating or cooling from biomass, geothermal energy, thermal solar energy and biogas. The heat fund is part of the Energy Transition for Green Growth law and its objective of reducing its greenhouse gas emissions by 40% by 2030.

• Fonds chaleur – subsidy for biogas and solar thermal technologies
• Éco-prêt à taux zero – zero interest loan for energy renovation

Agence de l’Environnement et de la Maîtrise de l‘Énergie (ADEME)

In its NECP, France has set the target of a reduction in emissions for the transport sector of 5% in 2030, and 6% in 2050 compared to 2015. Apart from that, according to the NECP, France foresees to achieve a 35% electric passenger vehicle market share and a 10% plug-in hybrid passenger car market share in 2030 (27% and 7% respectively in 2028).

The new Decree No. 2024-1084 of November 29, 2024 relating to aid for the purchase or rental of low-polluting vehicles is setting some changes to the support schemes by reducing the amounts and scope of these aids. As per the decree the conversion bonus scheme which intends to help private individuals and businesses in France to buy a new or second-hand low-pollution vehicle in exchange for scrapping an old, polluting vehicles (prime à la conversion) is being discontinued as of December 2024. In addition, the bonus écologique provided for the purchasing of electric cars has been significantly reduced.

In addition, specific financial incentives such as the one intended for incorporation of biofuels or tax credit for the installation of electric vehicle charging stations is also foressen. 

• Bonus écologique - Financial aid allocated to any purchaser of an electric car
• Taxe incitative relative à l'incorporation de biocarburants – tax incentive on the incorporation of biofuels
• Crédit d’impôt pour l’installation de bornes de recharge pour véhicule électrique – Tax credit of 75% for the installation of an electric vehicle charging station

• Agence de services et de paiement (ASP)
• French customs administration
• Direction Générale des Finances Publiques