COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet France Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK Third Report on the State of the Energy Union
Date: 2017-11-23
Institutions: European Commission, Secretariat-General
Subjects: France, climate change policy, competitiveness, economic and social cohesion, energy cooperation, energy policy, innovation, investment, regional cooperation, single market

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.11.2017 SWD(2017) 395 final  COMMISSION STAFF WORKING DOCUMENT Energy Union Factsheet France  Accompanying the document  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK  Third Report on the State of the Energy Union  {COM(2017) 688 final} - {SWD(2017) 384 final} - {SWD(2017) 385 final} - {SWD(2017) 386 final} - {SWD(2017) 387 final} - {SWD(2017) 388 final} - {SWD(2017) 389 final} - {SWD(2017) 390 final} - {SWD(2017) 391 final} - {SWD(2017) 392 final} - {SWD(2017) 393 final} - {SWD(2017) 394 final} - {SWD(2017) 396 final} - {SWD(2017) 397 final} - {SWD(2017) 398 final} - {SWD(2017) 399 final} - {SWD(2017) 401 final} - {SWD(2017) 402 final} - {SWD(2017) 404 final} - {SWD(2017) 405 final} - {SWD(2017) 406 final} - {SWD(2017) 407 final} - {SWD(2017) 408 final} - {SWD(2017) 409 final} - {SWD(2017) 411 final} - {SWD(2017) 412 final} - {SWD(2017) 413 final} - {SWD(2017) 414 final}  
 
 
 Energy Union – France 

  France 
                         Energy Union factsheet1 

1.  Macro-economic implications of energy activities 

Energy and transport are key sectors for the overall functioning of the economy as they provide an 
important  input  and  service  to  the  other  sectors.  Together  the  activity  in  these  two  sectors2 
accounted  for  6.7%  of  the  total  value  added  of  France  in  2015.  Similarly,  their  share  in  total 
employment3 was 5.5% in 2015, of which 5% in the transport sector and 0.5% in the energy sector.  

(source: Eurostat) 

The  decarbonisation  of  the  energy  and  transport  sectors  will  require  significant  investments  and 
economic  activity  beyond  the  remit  of  these  sectors  themselves.  The  energy  transition  implies  a 
structural  shift  in  economic  activity.  Energy-related  investment  and  jobs  will  in  part  migrate  from 
traditional  fossil  fuel  based  activities  towards  construction,  equipment  manufacturing  and  other 
services related to the deployment of low carbon and clean energy technologies. At the moment, the 
efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be 
partially quantified and are therefore not included in this analysis. 

In the case of renewable energy sector, both the direct as well as the indirect effects on employment 
are being estimated. According to EurObserv'ER, in 2015, the share of direct and indirect renewable 
energy  related  employment  in  total  employment  of  the  economy  in  France  was  at  about  0.63%, 
above the EU average of 0.54%. The turnover of the renewable energy industry in the same year was 

1 The indicators used in this country factsheet largely build on indicators developed for the Commission Staff 
Working  Document  "Monitoring  progress  towards  the  Energy  Union  objectives  –  key  indicators" 
(SWD(2017)  32 
final)  https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-
indicators_en.pdf 
 Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply 
and H-Transportation and storage 
 National accounts, Eurostat 

2 

3 

1 

 
 
 
 
                                                            
 
 Energy Union – France 

estimated at around EUR 20.03 billion, the biggest part being attributed to the biomass followed by 
photovoltaic. 

(source: EC based on Eurobserv'Er and Eurostat) 

An  indication  of  the level of  investments  in  the energy  sector  in France is  given by  the  Gross  fixed 
capital formation (GFCF)4. These investments, in the electricity and gas sectors, which are  taken as 
reference  sectors,  have  been  on  an  increasing  trend  since  2010.  They  represented  around  0.7%  of 
the country's GDP in 2015, higher than in the pre-crisis period. 

(source: Eurostat) 

In terms of trade, France is a net importer of fossil fuels and a net exporter of electricity. The trade 
deficit in energy products has fallen from about 2.4% of GDP in 2006 to 1.8% in 2015 influenced by 
improvements in energy efficiency and an increase of domestic renewable energy sources and by the 
decrease  in  the  prices  of  energy  commodities.  The  largest  decrease  is  accounted  for  by  petroleum 
products. The trade deficit for gas is on a decreasing trend since its peak in 2011/2012. It amounted 
to 0.5% of GDP in 2015, which was similar to its level in 2007.  

4 
 Gross  fixed  capital  formation  consists  of  resident  producers´  acquisitions,  less  disposals,  of  fixed 
tangible or intangible assets. This covers, in particular, machinery and equipment, vehicles, dwellings and other 
buildings. It also includes foreign direct investment (FDI). Steam and air conditioning supply are also included 
in the figures mentioned above as Eurostat reports electricity, gas, steam and air conditioning supply together. 

2 

 
 
 
 
                                                            
 
 Energy Union – France 

(source: Eurostat) 

2.  Energy security, solidarity and trust 

2.1. Energy Mix 

France's average energy mix has a much higher share of nuclear energy (43.7% vs 13.6%) compared 
to  the  EU  average.  Conversely,  fossil  fuels  are  much  lower  than  the  EU  average  (with  respectively 
13.6%  vs  22%  for  natural  gas,  30.3%  vs  34.4%  for  oil,  and  3.4%  vs  16.2%  for  solid  fuels).  The 
renewable  energy  portion  is  also  lower  (8.5%  France  vs  13%  for  all  EU),  and  the  gap  with  the  EU 
average has been widening since 2001 because the increase of renewable energy is slower in France 
than in the EU overall. 

 (Source: Eurostat) 

2.2. Import dependency and security of supply 

46% of France's energy consumption is met by imports, somewhat less than the EU average (54.1%). 
This is due to the high importance of nuclear energy in the energy mix which represents almost half 

3 

 
 
  
 
 
 
 Energy Union – France 

of  the  country's  energy  needs5.  The  overall  energy  import  bill  for  2015  amounted  to  39.7  billion 
euros  (far  behind  the  69  billion  paid  in  2012),  representing  1.8%  of  the  GDP.  This  decrease  can 
notably be explained by the fall in international fossil fuel prices.  

The overall import dependency of France recorded a decrease of about 5.6 p.p. between 2005 and 
2015, whilst at the EU level, import dependency increased by 1.9 p.p. over the same period. France 
imported almost all its fossil fuels needs in 2015, but the diversification of its import sources coupled 
with its good capacity levels at interconnection entry points and LNG terminals as well as adequate 
storage  facilities  make  the  French  market  less  vulnerable  than  most  Member  States  in  relation  to 
security of supply.  

 (source: Eurostat) 

Imports  of  natural  uranium  and  nuclear  fuels  are  not  included  in  Eurostat's  energy  balances  and 
therefore  import  dependency  cannot  be  calculated  in  the  same  way  as  for  the  main  fossil  fuels. 
France is importing most of its natural uranium needs from five main countries (Canada, Kazakhstan, 
Russia, Australia and Niger), relying on all major suppliers. The uranium bill represented less than one 
billion euros in 2015, to be compared to the 39 billion for fossil fuels. Concerning nuclear fuel cycle 
services (conversion, enrichment, fuel fabrication), EDF (the operator of the 58 nuclear reactors) is 
supplied  by  Areva  to  a  large  extent  but  also  by  other  competitors  such  as  Urenco  (Great  Britain-
Netherlands-Germany), Tenex (Russia) or Westinghouse (USA-Japan). Therefore, import dependency 
risks on  nuclear fuel are mitigated by  good supply diversification of the entire chain of the nuclear 
fuel  cycle.  EDF  also  holds  strategic  inventories  of  nuclear  materials  and  additional  stocks  of 
reprocessed uranium which provide further security of supply. 

The security of gas supply Regulation requires that, if the single largest gas infrastructure fails in one 
Member State, the capacity of the remaining infrastructure is able to satisfy total gas demand during 
a day of exceptionally high gas demand. France complies with this rule thanks to its gas infrastructure 
which includes seven major interconnection entry points and three LNG terminals, allowing an access 
to gas from the North Sea (mainly Norway), Russia, the Netherlands, North Africa (mainly Algeria) but 
also more generally to the international LNG market. 

5 

 Imports of natural uranium and nuclear fuels are not accounted for in these statistics. See below for more 
information on that point.  

4 

 
 
 
                                                            
 Energy Union – France 

(source: gas coordination group) 

3.  Internal market 

3.1. Interconnections and wholesale market functioning 

3.1.1.  Electricity 

 (source: EC based on ENTSO-E 
scenario outlook and adequacy 
forecast 2014) 

(sources: EC services based on Eurostat for the left graph  and based on 
Platts and European power exchanges for the right graph) 

In  2017,  France's  level  of  electricity  interconnection6  was  9.4%,  close  to  the  10%  target  set  by  the 
European Council for 2020. Nevertheless, the country is on the path to reach the 10% target by 2020 
through  the  completion  of  PCIs  currently under way.    France had 12  GW import capacity  and  17.4 
GW export capacity in 2016, making it a net exporter to all neighbouring countries with the exception 

6 The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities 
of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW] 
and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E 
Winter Outlook 2016/2017) 

5 

 
 
 
 
 
 
                                                            
 Energy Union – France 

of  Germany.  Further  market  integration  and  new  interconnection  capacities  with  the  Iberian 
Peninsula,  such  as  the  Biscay  Bay  HVDC  subsea  cable  and  two  other  projects  across  the  Pyrenees 
have been given priority in the Madrid Declaration signed in 2015 and would benefit consumers and 
businesses. The Biscay Bay project, France — Spain interconnection between Nouvelle Aquitaine (FR) 
and  the  Basque  country  (ES)  will  bring  the  interconnection  level  to  5000  MW  by  2025.  The  two 
planned projects for increasing the interconnection with France through the Pyrenees with estimated 
commissioning date on 2026 will increase the interconnection up to 8.000 MW. 

The French electricity market is characterised by a very strong concentration of the market share in 
the power generation, as well as in the supply market on all market segments, from households to 
big  industrial  consumers,  with  EDF  -  the  incumbent  -  remaining  the  dominant  market  player.  An 
increase in the market share of alternative suppliers to EDF can however be noticed on big industrial 
sites (reaching a market share of 46%, against 13% for households). This can be explained by the end 
of  regulated  tariffs  for  this  category  of  consumers,  while  regulated  prices  remain,  alongside  with 
“market offers”, for those who have subscribed less than 36 kVA. 

France  is  part  of  the  North  West  Europe  market.  Despite  reinforced  market  coupling,  wholesale 
prices  have  not  fully  converged  over  the  2011-2015  period,  in  particular  due  to  episodes  of 
interconnections  saturation.  Prices  differ  in  particular  when  there  is  a  massive  influx  of  electricity 
from  renewable  sources  in  Germany,  which  reduces  wholesale  prices  and  can  occasionally  cause 
negative prices due in particular to the limited flexibility of the power generation park both in France 
and Germany. 

Wholesale electricity prices in France remain below the EU average thanks to the low marginal costs 
of nuclear power generation (2 €/MWh below the EU average in 2015) although since 2008 the price 
differential with the EU average has narrowed substantially, mostly due to a faster reduction in EU 
prices. French wholesale prices remain higher than in Germany (8 €/MWh. in 2016).  

3.1.2.  Gas 

The concentration observed in the gas market is much lower than in the electricity market, and the 
concentration index is well below the EU average. Wholesale prices are on par with EU average. 

In  the  gas  sector,  France  is  well  connected.  A  new  LNG  terminal  in  Dunkirk  commissioned  in 
December 2016 allowed for the creation of a new interconnection point with Belgium. The High Level 
Group  for  Interconnections  in  South-West  Europe  set  in  2015  aims  at  enabling  increased 
interconnection capacity through targeted projects  between France and the Iberian Peninsula such 
as  the  Eastern  gas  axis  through  the  phased  development  of  Midcat  if  the  studies  being  made 
presently confirm the interest of this project. 

The creation of one single market zone in France is ongoing and on track, and will be completed by 
end 2018 through the commissioning of the PCI Val-de-Saone, co-financed through EEPR (European 
Energy Programme for Recovery).  

6 

 
 
 Energy Union – France 

(source: ACER for the left graph and EC services based on on Platts, gas hubs, Eurostat for the right graph) 

3.2. Retail electricity and gas markets 

3.2.1.  Electricity 

In 2016, households' electricity prices in France were below the EU average. Between 2013 and 2016, 
average  band  retail  electricity  prices  for  households  increased,  due  to  the  increase  in  electricity 
network  costs and taxes and levies (mainly network costs such as the TURPE,  "tarif d'utilisation du 
réseau public de l'électricité" and the CSPE, the "Contribution au service public de l’électricité", which 
includes renewable levies), similar to EU average. 

Retail  electricity  prices  are  correlated  to  the  existence  of  regulated  tariffs  (TRV,  i.e.  "tarifs 
réglementés de vente") that accounted at the end of 2016 for 86% of residential customers. As part 
of  the  opening  up  of  markets  to  competition,  residential  and  business  customers  have  the  choice 
between TRV, offered only by EDF and local distribution companies, and market offers offered by all 
energy  suppliers  including  historical  suppliers.  The  principle  of  reversibility  makes  it  possible  to 
switch  from  TRV  to  market  offers  and  vice  versa  without  limitation.  Between  2011  and  2015,  the 
annual switching rate for households was on average 3.5%, below the EU average (5.8%). 

The deployment of smart meters (Linky) has started in December 2015 and will continue until 2021, 
although  it  is  facing  some  opposition  among  French  households.  It  should  help  limiting  electricity 
consumption of households and therefore lead to lower energy costs and prices. 

7 

 
 
 
 
 Energy Union – France 

(source: ACER) 

    (source: Eurostat) 

       (source: Eurostat) 

3.2.2.  Gas 

The opening to competition of the gas market is now very advanced, especially on the non-domestic 
consumers market. The market offers (vs. the regulated tariffs – TRVs - accessible for households) are 
largely the majority in volume (86%) and concern more than 50% of sites at the end of 2016. Market 
share of alternative suppliers reached 23% in volume of consumption in the household segment and 
67%  in  the  non-residential  one.  The  market  offers  pull  prices  down  with  discounts  up  to  15%  in 
comparison to the TRVs. 

As  for  electricity,  households  may  choose  between  TRVs  with  historical  suppliers,  or  market  offers 
with alternative ones (or historical suppliers). In such a context, switching rates have increased much 
more than in the electricity market, from 4.5% in 2011 to 7.7% in 2014 and 9.4% in 2015 (vs 4.3% the 
same year for electricity). 

(source: ACER) 

(source: Eurostat)  

(source: Eurostat) 

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Energy Union – France 

3.2.3.  Market performance indicators 

According  to  the  periodical  survey  of  the  European  Commission  (DG  JUST),  French  consumers  are 
more satisfied than the average EU consumer about the services  received on energy retail markets 
(84.6% vs 75.3% for electricity, and 83.9% vs. 78.1% for gas). 

(source: DG JUST survey) 

3.3. Energy affordability  

Energy  poverty  is  less  of  an  issue  in  France  than  in  other  EU  Member  States,  as  the  energy 
expenditure share in overall consumption of the poorest households is lower in France than in many 
other Member States: the share of energy in total household expenditures of the lowest quintile of 
the population is among the lowest in the EU (5.7% vs. 8.6% in 2014). However, 16.3% of the citizens 
below  the  at-risk-of-poverty threshold  in  2015  (vs  12.9%  in  2005) consider  that  they are  unable  to 
keep  their  home  adequately  warm,  despite  the  fact  that  protection  measures  for  vulnerable 
consumers are in place, such as social tariffs for electricity and gas, soon to be replaced by "energy 
cheques".  

 (source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics) 

9 

 
 
 
 
 
 
 
 Energy Union – France 

4.  Energy efficiency and moderation of demand 

Since  2005,  France  has  decreased  its  primary  energy  consumption  by  8%  to  reach  239.3  Mtoe7  in 
2015 and its final energy consumption also decreased by 10% to reach 144.1 Mtoe8 in 2015, whereas 
the  GDP  increased  by  9%  over  the  same  period.  These  figures  -  together  with  the  primary  energy 
intensity  which  decreased  by  1.7%  every  year  (on  average)  since  2005  –  reflects  the  general 
decoupling  between  economic  growth  and  energy  consumption.  However,  even  if  France  has 
reduced  the  gap  towards  its  indicative  national  2020  targets  for  energy  efficiency  (219.9  Mtoe  in 
primary  energy  consumption  and  131.4  Mtoe  in  final  energy  consumption,  both  targets  excluding 
international transport), the rapid and thorough implementation of the "Energy Transition for green 
growth"  Act9  of  17  August  2015  is  required  to  further  tap  into  the  significant  potential  for  energy 
demand reductions in areas such as the building sector in order to achieve its targets.  

(source: Eurostat) 

Although primary energy intensity decreased over the 2000-2015 period, it was at a slower pace than 
the  EU  average,  putting  France  slightly  above  the  EU  average  in  terms  of  performance  (i.e.  with  a 
higher intensity: 114.1 toe/mn EUR of GDP, vs. 113.3 for the EU). In 2000, France was 9th in terms of 
primary energy intensity, and 13th in 2015, behind countries like Spain, Germany and the UK. 

The  structure  of  final  energy  consumption  per  sector  is  quite  similar  to  the  EU  average.  In  2015, 
transport  was  the  biggest  energy  consuming  sector  representing  a  34.7%  share  in  the  total  final 
energy consumption, which is very close to the EU average (i.e. 33.1%), followed by residential sector 
(26.1% vs 25.4% for the EU average), industry (19.9% vs. 25.3%) and services (15.6% vs. 13.6%).  

7  Eurostat data, not taking into account climate corrections (weather effect)  
8  Eurostat data, not taking into account climate corrections (weather effect) 
9  LOI n 2015-992 du 17 août 2015 relative à la transition énergétique pour la croissance verte 

10 

 
 
 
 
                                                            
 Energy Union – France 

(source: Eurostat) 

Final  energy  intensity  levels  are  decreasing  at  a  slower  pace  than  the  EU  average  but  the  trends 
remain encouraging in most sectors. In the industry and services sectors, final energy intensity levels 
remain  well  below  EU  average,  reflecting  the  improvements  in  energy  efficiency  realised  over  the 
past  decade.  However,  the  final  energy  consumption  per  m²  of  floor  area  of  residential  building 
(climate corrected) is slightly above EU average. Additional efforts could therefore be envisaged to 
accelerate the energy renovation of residential buildings. 

(source: Eurostat)  

(source: Eurostat)  

       (source: Odyssee database) 

In the transport sector, the final energy consumption remained stable over the period 2005-2015 but 
since 2013 it started increasing to reach a level above its 2011 level, while GDP increased by 0.9% per 
annum on average.  Passengers  transport activity  increased  in 2015  by  5.8%  as  comparing  to  2005. 
This trend in final energy consumption can be explained by the decrease in freight transport activity, 
which decreased by 16.5% over the period 2005-2015 but also by more energy-efficient new cars. In 
addition, the share of collective passengers land transport has slightly increased, indicating a lower 
use of private transport. 

11 

 
 
 
 
 
 
 Energy Union – France 

(source: Eurostat)  

        (source: Eurostat and DG MOVE pocketbook) 

 (source: Eurostat) 

The  French  transport  policy  framework  is  developed  around  three  priorities:    (i)  to  end  the  road 
transport  paradigm,  (ii)  to  develop  passenger  public  transport,  and  (iii)  to  reduce  air  transports 
pollution.  In  terms  of  infrastructure,  priority  is  given  to  the  improvement  of  existing  networks  and 
the development of clean alternative modes of transport to the air and the road. 

The Energy Transition Act has established the objectives of a new energy model in France and aims 
to  foster  "green  growth"  by  reducing  energy  costs  and  favouring  energy  efficiency,  renewable 
energies and the circular economy. It sets targets for the promotion of energy efficiency, renewable 
energies  and  the  use  of  cleaner  modes  of  transport.  At  the  local  level,  the  development  of  urban 
mobility  plans  –  "Plans  de  Déplacements  Urbains"  (PDU)  –  is  mandatory  in  urban  transport 
perimeters of urban agglomerations with more than 100,000 inhabitants, and must be accompanied 
by an environmental impact assessment. 

12 

 
 
 
 
 
 
 
 
       
 
 
 
 
 
 Energy Union – France 

5.  Decarbonisation of economy 

5.1. GHG emissions 

In 2016 GHG emissions in France were 16.4% below their 1990 levels, slightly above the EU average 
of -22.1%. According to the latest national projections in a with existing measures scenario, the level 
in  France's  non-ETS  greenhouse  gas  emissions  by  2020  is  projected  to  be  20%  lower  than  in  2005. 
France is consequently expected to achieve its 2020 target under the Effort Sharing Decision by a 6 
pps gap. 

(source: EC and EEA)   

According  to  2016  European  Environmental  Agency  (EEA)  estimates,  the  GHG  intensity  of  France's 
economy  is  well below  the EU  average,  since 1990,  decreasing however  slightly slower  than in the 
EU.  In  2016  the  GHG  emissions  per  capita  in  France  were  also  significantly  below  the  EU  average. 
GHG emissions have continuously decreased since 1990s thanks to large reductions in industry and 
energy production, as well as the high nuclear share. Emissions of the transport sector have shown a 
rising  trend  between  1990  and  2004  with  an  increase  of  20%,  followed  by  a  slight  decrease  of  7% 
between 2004 and 2008, and a stabilisation since 2008.Emissions in the residential/tertiary sectors 
have  shown  a  rising  trend  between  1990  and  2005  (+20%),  followed  by  a  decrease  between  2005 
and 2015 (-19%). French authorities have introduced under the 2014 Finance Act a carbon element in 
the energy tax which is proportional to GHG emission content imposed to sectors outside the ETS. 

In 2015, the largest sectors in terms of GHG emissions were the transport sector (29% of the total 
GHG  emissions)  followed  by  industry  (20.8%),  agriculture  &  fisheries  (19.8%)  and  the  residential 
sector  (16.5%).  One  particularity  of  this  structure  concerns  the  power  sector,  mainly  based  on 
nuclear energy, and therefore contributing to 10.1% only of the total emissions. In relative terms, the 
GHG emissions from transport and agriculture were well above the EU average. 

13 

 
 
 
 Energy Union – France 

(source: EC and EEA)   

In France, agriculture has a relatively large share in national emissions (over 15% on average 1990-
2013)  and  higher  than  average  share  of  agriculture  in  the  Effort  Sharing  sectors.  Emissions  in 
agriculture have been slowly decreasing since 1990 (-4.4% between 1990 and 2015).    

Preliminary accounts under the Kyoto Protocol for France show overall removals of -5.9 Mt CO2-eq. 
as  an  annual  average  in  the  period  2013-2015.  For  comparison,  the  annual  average  of  the  EU-28 
accounted  for  removals  of  -119.0  Mt  CO2-eq.  It  should  be  noted  that  in  this  preliminary  simulated 
accounting exercise, removals from Forest Management did by far not exceed the accounting cap.  

Emissions  by  Deforestation  are  slightly  higher  than  removals  by  Afforestation.  The  relative 
importance of removals by Forest Management, at a similar level as other activities in 2013, reduced 
over time. Overall, there is a decreasing trend in removals, mainly due to previously noted declining 
removals  by  Forest  Management.  Removals  by  Afforestation  slightly  increased  while  emissions  by 
Deforestation remained unchanged over the course of the three-year period.  

Note: Forest Management credits are capped and presented as yearly averages when the total Forest 
Management credits of the considered period exceed the simulated cap over the same period. 

(source: EC and EEA) 

14 

 
 
 
 
 
 Energy Union – France 

CO2 emissions in transport and alternative fuelled vehicles 

In 2015, road transport emissions were 10.7 % higher than 1990 levels. Average emissions for newly 
registered  cars  are  low  with  a  level  of  109.8  g  CO2/km  and  decreased  by  28  %  between  2005  and 
2016,  similar  to  the  EU  average.  The  National  Low  Carbon  Strategy  has  set  indicative  emission 
targets. For the transport  sector, the indicative target is a reduction of 29 %  by 2028 compared to 
2013, and by 66 % by 2050 compared to 1990.  

(source: European Environment Agency) 

The  number  of  electric  charging  points  in  France  has  over  the  period  2013  to  2016  increased 
significantly, reaching 15 843 units in 2016. 

(European Environment Agency)  

       (European Alternative Fuels Observatory) 

National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to 
establish targets, objective and measures for the development of the market of alternative fuels in 
the  transport  sector  and  the  deployment  of  the  relevant  infrastructure.  France  has  submitted  its 
National Policy Framework as requested under article 3 of the Directive 2014/94/EU.  

A detailed assessment of the French National Policy Framework in terms of its compliance with the 
requirements  of  Directive  2014/94/EU  on  alternative  fuels  infrastructure,  its  contribution  to 

15 

 
 
 
 
 
 
 
 
 Energy Union – France 

achievement  of  long-term  energy and  climate objectives  of  the  Union  and  coherence of  its  targets 
and objectives in terms of cross-border continuity has been published as part of the Communication 
on  Alternative  Fuels  Action  Plans  (COM(2017)652)  and   the  related  staff  working  document 
SWD(2017)365.  

5.2. Adaptation to climate change 

In France, a National Adaptation Strategy was adopted in 2006 and the National Adaptation Plan was 
adopted  in  2011,  covering  20  thematic  areas:  cross-cutting  actions,  health,  water,  biodiversity, 
natural  hazards,  agriculture,  forests,  fisheries  and  aquaculture,  energy  and  industry,  transport 
infrastructures,  urban  planning  and  the  built  environment,  tourism,  information,  education  and 
training, research, funding and insurance, coastlines, mountains, European and international actions, 
and  governance.  A  second  adaptation  plan  is  foreseen  for  adoption  in  2017.  As  the  integration  of 
adaptation into sectorial policies is part of the NAP's specific actions and measures, the monitoring 
scheme looks at a qualitative assessment of the status of implementation of the 230 measures in the 
different sectors. 

5.3. Taxes on energy and transport and fossil fuel subsidies 

The  overall  tax  burden  on  energy  and  transport  (including  carbon  taxation)  in  relation  to  GDP 
amounted to 1.9% in 2014, nearly 0.5 p.p. lower than the EU average. This relative gap is quite stable 
since  2005.  Taxation  of  heat  and  electricity  is  lower  than  the  EU-average,  but  has  shown  a  steep 
increase since 2005. The tax burden on transport fuels has in contrast fallen since 2005, while it has 
remained broadly stable for vehicles. The tax burden on vehicles was significantly lower than the EU 
average at that time. 

France uses taxation as part of its climate policy, and has a carbon tax in place. In 2017, it amounts to 
€30.5/tCO2, and was increased in early 2016 by 8.5€/tCO2. It is applied on transport and heating fuels 
as well as on natural gas and coal. Revenues from this carbon tax were estimated at 2.3 billion EUR in 
2015 and 3.8 billion EUR in 2016. The Energy Transition Act10 established a long-term trajectory for 
this tax to 56 EUR in 2020 and to reach a rate of 100 EUR per tonne of CO2 in 2030. 

For  vehicles  a  revenue  neutral  bonus-malus  system  is  applied.  In  addition,  excise  duties  on  diesel 
have  increased  in  2017  (by  0.01  EUR  per  litre)  while  they  have  decreased  on  petrol  by  the  same 
amount. As a result the taxation gap between diesel and petrol is closing but still remains. 

Fuel taxation in France is above the EU average. The road fuel excise duties on petrol are the eighth 
highest among EU Member States, and the excise duties on diesel are the fifth highest (EEA, 2016). In 
the context of the 2016 Finance Act, France decided to converge the tax rates on diesel and petrol 
over  the  next  five  years.  For  2017,  the  tax  difference  is  at  0.10  EUR/litre  and  the  government 
announced a total convergence by 2022 in its Climate Plan. An important measure to incentivise the 
purchase of low-CO2 emitting cars is France’s ‘bonus-malus’ system. Based on the CO2 emissions of 
the purchased car, the government offers a bonus payment (credit) on the purchase of low-emitting 
cars,  and  levies  an  additional  fee  (tax)  on  the  purchase  price  of  high-emitting  vehicles.  The 
government regularly adjusts the emission levels for eligible cars.  

In  July  2017  the  Government  published  a  comprehensive  Climate  Plan  with  new  targets  and  tools 
addressing  both  cross-cutting  and  specific  sectors.  Regarding  transport,  a  fund  for  sustainable 

10 

 LOI n 2015-992 du 17 août 2015 relative à la transition énergétique pour la croissance verte 

16 

 
 
                                                            
 Energy Union – France 

mobility and alternative fuels is scheduled, and a plan to end the sales of GHG emitting vehicles by 
2040 is included. 

(source: Eurostat) 

Fossil  fuel  subsidies  have  increased  in  France  in  the  last  decade,  predominantly  driven  by  the 
reduced rates of excise tax applicable to certain users of diesel fuel.  

(source: OECD Inventory of Support Measures for Fossil Fuels 2015)  

5.4. Renewable energy  

The share  of  renewable  energy in  gross  final  energy  consumption reached 15.2%  in 2015,  which is 
approximately 1-percentage point below its interim-target objective for 2015/2016 (16%).  

Renewable energy developments will also need to be significant in the medium term to comply with 
the  ambitious  objectives  of  the  Energy  Transition  Act,  in  particular  the  objective  of  having  32%  of 
energy consumption from renewable sources by 2030. In that respect, investor confidence in France 
would be reinforced by further certainty on the concrete measures planned to achieve the objective 
of decreasing the share of nuclear electricity to 50% by 2025. 

17 

 
 
 
 
 Energy Union – France 

 (source: Eurostat-SHARES) 

(source: Eurostat-SHARES) 

Concerning electricity from renewable energy sources (RES), France is almost in line with its planned 
trajectory  set  in  the  National  Renewable  Energy  Action  plan  (NREAP).  In  2015,  the  country  was 
approximately  2-percentage  points  behind  its  objective  (18.5%  vs  21%),  which  is  not  negligible. 
Renewable  electricity  is  mainly  promoted  through  feed-in-tariffs  up  until  now,  but  the  Energy 
Transition  Act  has  set  a  feed  in  premium  system  ("complément  de  rémunération")  to  support  PV, 
onshore  and  offshore  wind,  as  well  as  hydroelectricity  and  bioenergy.  Moreover,  the  Ministry  for 
Ecological and Inclusive Transition  publishes calls for tenders in order to support the development of  
renewable  energy  projects,  such  as  photovoltaic  plants,  large  solid  biomass  plant  or  offshore  wind 
farms.  

Concerning the RES share in heating & cooling,  the French NREAP anticipates a share of 33% for in 
2020.  However,  since  2010,  the  actual  deployment  has  constantly  been  below  the  planned 
trajectory.  Moreover,  the  spread  between  the  anticipated  share  and  the  effective  share  has 
increased. Low prices of fossil fuels these last years create a negative incentive for renewable heat 
projects,  although  the  government  helps  these  projects  via  tax  credits  or  subsidies  of  the  ADEME 
(agency for environment and energy efficiency). 

In the field of transport, according to the NREAP, the anticipated national RES share is 10.5% by 2020. 
Since 2010, France is on track regarding its planned trajectory. If the current trend is maintained, the 
country is projected to be almost in line in with its 2020 anticipation. Due to a very important diesel 
fueled  car  market,  France  is  by  far  the  top  European  biodiesel  consumer.  The  country  owns  a 
structured biodiesel industry with some of the main European producers. 

18 

 
 
 
 
 Energy Union – France 

Thanks  to  the  deployment  of  renewables  since  2005,  it  is  estimated  that  France  avoided  in  2014 
about 6% of fossil fuel use in gross inland consumption and about 4.8% of GHG emissions at national 
level, which is below the EU average11. 

 (source: EEA) 

5.5. Contribution of the Energy Union to better air quality 

Air quality in France continues to give cause for severe concern. For the year 2013, the EEA estimated 
that  about  45,120  premature  deaths  were  attributable  to  fine  particulate  matter  (PM2.5) 
concentrations and 8,230 to nitrogen dioxide (NO2) concentrations12.  

For  both  pollutants  France reported exceedances  of  the binding  EU  air  quality  standards13. For  the 
year  2015,  France  reported  exceedances  of  the  limit  value  for  PM10  in  6  out  of  the  76  air  quality 
zones in France, while exceedances of the limit value for PM2.5 were reported in 1 zone, and of the 
limit value for NO2 in 15 out of 76 zones14.  

11  Avoided  GHG  emissions  mentioned  here  have  a  theoretical  character  as  these  contributions  do  not 
necessarily  represent  'net  GHG  savings  per  se'  nor  are  they  based  on  life-cycle  assessment  or  full  carbon 
accounting. 

12  European  Environment  Agency,  2016,  Air  Quality  in  Europe  –  2016  Report,  table  10.2.  The  report  also 
includes details as regards the underpinning methodology for calculating premature deaths.    
13 Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality 
and cleaner air for Europe, OJ L 152, 11.6.2008, p.1-44 
14  Compliance  data  as  reported  by  the  Member  States  as  part  of  their  official  annual  air  quality  report  for  the 
calender year 2015 (available on the European Environment Agency's (EEA) Eionet/Central Data Repository), 
http://cdr.eionet.europa.eu/fr/eu/aqd  

19 

 
 
 
 
                                                            
 Energy Union – France 

(source: EEA) 

The health-related external costs from air pollution in France have been estimated to be more than 
EUR 37 billion/year (income adjusted, 2010), which includes the intrinsic value of living a healthy life 
without premature death as well as the direct costs to the economy such as healthcare costs and lost 
working days due to sickness caused by air pollution15. 

In  order  to  meet  air  quality  targets,  France  published  in  May  2017  a  national  action  plan,  le  Plan 
national de réduction des émissions de polluants atmosphériques (PRÉPA)16, setting out measures to 
reduce 
sectors.  
Local authorities were also involved in drawing up the PRÉPA and its implementation.  

contributing 

pollutants 

emissions 

different 

from 

air 

of 

The Energy Union can further contribute to addressing these air quality problems through measures 
reducing emissions of both emissions and air pollutants such as PM and nitrogen oxides (NOx) from 
major  contributing  sectors  such  as  (road)  transport,  energy  production,  industry  and  residential 
heating (e.g. stoves and boilers) as shown in the figure below17. In this context, Paris announced its 
ambition to electrify nearly all of its public transportation by 2025. 

(Source: EEA. This table reflects only sources of primary PM2,5 emissions.)  

6.  Research, innovation and competitiveness  

6.1. Research and innovation policy  

France  adopted  in  2016  a  National  Research  Strategy  for  Energy,  as  requested  by  the  Energy 
Transition  Act  of  2015.  The  broad  'Programme  d’Investissements  d’Avenir'  (PIA)  is  a  major 
instrument  for  clean  energy  research  &  innovation  (R&I)  funding  in  France.  A  first  round  of  this 
programme  was  launched  in  2010  and  a  second  one  in  2014.  Within  this  framework,  the 
Environment and Energy Management Agency (ADEME) manages around EUR 3 billion of financing 
for  the  2010-2020  period.  ADEME  has  launched  a  series  of  calls  for  demonstration  projects  in  the 
field of clean energy. So far, more than 620 projects have been supported with EUR 2.1 billion. An 
additional 15 calls were opened at the beginning of November 2016 on various topics linked to the 
French participation in the international initiative Mission Innovation initiative (see below). 

15  See  also  the  EU  Environmental  Implementation  Review  Country  Report  for  France,  SWD(2017)44  final  of 
3.2.2017 
16 https://www.ecologique-solidaire.gouv.fr/politiques-publiques-reduire-pollution-lair 
17 National emission data as reported by the Member States to the EEA (available on the EEA's Eionet/Central 
Data Repository), http://cdr.eionet.europa.eu/fr/eu/nec_revised 

20 

 
 
 
                                                            
 Energy Union – France 

The  National  Research  Agency  (ANR)  operates  another  PIA  programme  called  'Instituts  de  la 
transition  énergétique'  (ITE),  with  EUR  1  billion  funding  during  the  2010-2020  period.  The  ITE 
programme  brings  together  private  companies  and  public  laboratories  to  create  new  institutes 
dedicated to R&I in the field of clean energy18.  

In  addition  to  the  PIA  programme,  ANR  also  runs  a  basic  research  funding  programme  based  on 
annual calls for projects focused on the priorities defined in the French National Research Strategy, 
which  includes  a  'clean,  secure  and  efficient  energy'  challenge  similar  to  that  in  the  Horizon  2020 
programme  (see  below),  focused  on  five  areas:  (a)  Dynamic  management  of  energy  systems;  (b) 
Multi-scale governance of new energy systems; (c) Energy efficiency in all fields of the economy; (d) 
Reduced need for strategic materials; (e) Decarbonisation of energy and chemistry sectors. 

These  focus  areas  are  also  followed  by  the  main  energy  research  entities  (CEA,  IFPEN,  CNRS, 
universities…), which are grouped in a 'research alliance' dedicated to energy called ANCRE ("Alliance 
Nationale de Coordination de la Recherche pour l'Energie"). 

France  is  a  very  active  contributor  to  the  ongoing  work  of  the  Strategic  Energy  Technologies  (SET) 
Plan. It participates in all the temporary working groups for the implementation of the integrated SET 
Plan, leading the one dedicated to batteries and co-leading the one dedicated to nuclear safety. 

Regarding  the  Horizon  2020  programme,  France  has  received  so  far  8.2%  of  the  EU  contribution 
devoted  to  the  'secure,  clean  and  efficient  energy'  part  of  the  programme.  As  of  September  2017, 
287  participations  from  French  organisations  have  been  awarded  over  EUR  148  million  in  Horizon 
2020  energy  projects.  This  includes  a  grant  of  EUR  8.4  million  to  Fonroche  Geothermie  for  its 
participation  in  project  DEEPEGS  (deep  enhanced  geothermal  systems),  and  eight  grants  totalling 
almost  EUR  7.8  million  to  French  beneficiaries  participating  in  project  SMARTER  TOGETHER  (smart 
and inclusive solutions for urban districts). 

France is  a  founding  member of  Mission  Innovation19. As  a  result,  it has  committed to  doubling  its 
state  funding20  in  clean  energy  R&I  from  the  baseline  level  of  EUR  440  million  in  2014  to  EUR  880 
million in 2020. These investments will focus on renewable energy, energy storage, carbon capture 
storage  and  use,  and  innovations  aiming  at  improving  energy  efficiency  (including  in  industry, 
buildings,  transport,  circular  economy,  and  smart  grids).  They  will  cover  the  whole  chain  of 
innovation, from basic research to demonstration. 

6.2. Investments and patents in the Energy Union R&I priorities  

In  2015,  France  was  the  EU  Member  State  with  the  highest  public  (national)  investments  in  the 
Energy  Union  R&I  priorities.  R&I  investments  reached  EUR  1 023  million,  having  decreased  by  3% 
compared  to  2014.  The  highest  share  of  investments  (44%)  was  attracted  by  the  Nuclear  Safety 
priority of the Energy Union, followed by the Sustainable Transport and Smart System priorities (21% 
and  19%  respectively).  In  the  period  2007-2015,  the  maximum  annual  public  investment  was  EUR 
1 109  million,  reported  in  2011.  In  2014,  the  most  recent  year  for  which  data  from  most  Member 
States are available, public investment per GDP in France was higher than the EU average.  

18 

19 
20 

 For  instance,  institute  SUPERGRID  is  focused  on  future  electric  transmission  grids,  VEDECOM 
specialises on sustainable mobility and connected vehicles, INES2 and IPVF are dedicated to solar energy, 
PIVERT and IFMAS are focused on bio-energy, EFFICACITY is about smart cities, etc 
 http://mission-innovation.net/ 
 Local authorities' funding is not included 

21 

 
 
                                                            
 Energy Union – France 

Private  investment  in  the  Energy  Union  R&I  priorities  in  2013  was  estimated  at  EUR  2 582  million 
(16%  of  the  private  R&I  investment  in  Energy  Union  R&I  priorities  in  the  EU).  The  focus  was  on 
Sustainable  Transport,  which  received  33%  of  these  investments,  followed  by  the  Smart  System 
priority with a share of 25%. 

In 2013, the most recent year for which complete patent21 statistics are available, 409 companies and 
research organisations based in France filed 1 030 patents in low-carbon energy technologies (16% of 
the EU total). The focus was on Sustainable transport (35%), followed by the Smart System (22%) and 
Efficient Systems (19%) priorities. 

In 2013, private R&I investment and patents in the Energy Union R&I priorities were higher than the 
EU average, when normalised by GDP and by population respectively. In the period 2007-2013, both 
private  R&I  investments  and  the  number  of  patents  in  Energy  Union  R&I  priorities  increased  on 
average  by  10%  and  20%  per  year,  increasing  faster  than  the  indicators  at  EU  level  (6%  and  15% 
respectively). 

Note: The international comparison (right) is shown for 2014 (France had reported EUR 1 054 million). 
Reporting at EU level for 2015 is not as complete, and very few countries have reported for 2016. 

21  

In the context of this document, the term 'patent' refers to patent families, rather than applications, as a measure of 
innovative activity. Patent families include all documents relevant to a distinct invention (e.g. applications to multiple 
authorities),  thus  preventing  multiple  counting.  A  fraction  of  the  family  is  allocated  to  each  applicant  and  relevant 
technology. 

22 

 
 
 
 
 
 
 
 
 
 
 
 
                                                            
 Energy Union – France 

(Data sources: Public investment as available in the International Energy Agency RD&D Statistics database22 for 
codes  relevant  to  Energy  Union  RIC  priorities.  Patent  data  based  on  the  European  Patent  Office  PATSTAT 
database23. Private investment as estimated by JRC SETIS. Detailed methodology available from the JRC24.) 

6.3. Competitiveness 

In 2014, the real unit energy costs (RUEC)25 in France (at 16% of value added) were slightly above the 
EU average (15.3), around two times more than those in the US but below those in Japan and China. 
Over  the  recent  years,  energy  intensity  improved  but  electricity  prices  increased,  resulting  in  an 
overall increase in real unit energy costs.  

(source: ECFIN) 

                   (source: ESTAT and IEA) 

Regarding  the  competitiveness  in  wind  and  solar  energy,  France  does  not  show  a  revealed 
comparative advantage in either sector as indicated by a value of this indicator26 below 1. This means 
that France exports  proportionally  less  of  wind  and  solar  technologies,  when compared  to  its  total 
exports,  than  other  countries  do.  Nonetheless,  when  looking  at  the  different  components  of  the 
value  chain  for  each  technology,  France  displays  a  comparative  advantage  in  power  electronics. 
When looking at the trade balance (the difference between exports and imports), it shows France is a 
net  importer  of  solar  photovoltaic  components  and  products27,  while  it  exhibits  a  trade  surplus  in 
wind  energy  technologies  due  to  its  strong  position  in  the  power  electronics  market  segment  that 
compensates for the trade deficits in the other parts of the supply chain. 

22 http://www.iea.org/statistics/RDDonlinedataservice/  
23 https://www.epo.org/searching-for-patents/business/patstat.html#tab1  
24 https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-technologies  
25 

 This indicator measures the amount of money spent on energy sources needed to obtain one unit of value 
added. 

26 

 is the value of exports, 
 The RCA index for product "i" is defined as follows: 
and j is the country and w is the reference group, the World economy. 2005 refers in the text to the indicator 
average over the 2000-2009 period, while 2015 represents the average over the 2010-2016 period. The same 
applies for the RTB indicator - see below. 

 where 

27 
product's "i" exports and 

 The RTB indicator for product "i" is defined as follows: 

 where 

 is the value of 

 imports. 

23 

 
 
 
 
 
 
 
 
                                                            
 
 Energy Union – France 

(source: UN comtrade) 

7.  Regional and local cooperation 

France  is  a  founding  member  of  the  Pentalateral  Energy  Forum  created  in  2005,  together  with 
Benelux,  Germany,  and  Austria  (joining  the  Forum  in  2011),  in  order  to  promote  collaboration  on 
cross-border exchange of electricity. It counts more than one third of EU population and covers over 
40% of the electricity generation in the EU. The Pentalateral forum was the first region to publish a 
regional  Generation  adequacy  assessment  (in  March  2015),  which  is  an  important  step  to  better 
assess the generation needs across borders, improving the integration of markets by minimizing the 
tendency for national solutions to adequacy concerns. In May 2015, it launched flow based market 
coupling,  an  improved  version  of  market  coupling,  calculating  transmission  capacity  in  a  dynamic 
manner and a world premiere.  

France is also a Member of two regional High Level Groups (Northern Seas and South West Europe). 

The  Northern  Seas  HLG  was  established  through  a  political  declaration  with  the  participating 
countries28 and the Commission on 6 June 2016. The declaration sets as objective to facilitate cost-
effective  deployment  of  offshore  renewable  energy  and  to  facilitate  the  further  interconnection 
between  Northern  Sea  countries  and  the  further  integration  of  wholesale  electricity  markets.  It  is 
estimated that the potential of wind resources in the region could meet up to 12% of the EU's entire 
electricity demand, which needs to be supported by an optimised transmission network.  

The South West HLG (which includes Portugal, Spain and France) was established in March 2015 by 
heads  of  States.  It  promotes  projects  to  increase  the  interconnectivity  of  the  Iberian  Peninsula 
electricity  markets  with  the  remaining  European  markets.  These  projects  comprise  an 
interconnection for  electricity  in  the Biscay  Bay  as  well as  two  additional  interconnections  through 
the Pyrenees. The three Member States also agreed to assess the gas interconnectivity between the 
three countries, the "Eastern Axis". One of the projects is currently known under the name MIDCAT, 
which will allow for bidirectional flows between the Iberian Peninsula and France. The Midcat project 
can  be  realized  in  two  steps,  with  project  STEP  as  a  first  phase  to  increase  the  bidirectional  flows 

28  Belgium,  Denmark,  France,  Germany,  Ireland,  Luxembourg,  Netherlands,  Sweden,  the  United-Kingdom 

and EEA Member Norway 

24 

 
 
  
 
                                                            
 Energy Union – France 

between  the  two  countries.  "Val  de  Saône"  will  offer  by  2018  increased  North  to  South  flows  in 
France along the Eastern gas Axis from the Iberian to France. 

The  EU  macro-regional  strategy  for  the  Alpine  Region  in  which  France  takes  part  can  be  used  as  a 
basis  for  regional  cooperation  on  energy.  European  Territorial  Cooperation  –'Interreg'  –  under  EU 
cohesion policy also provides further opportunities for cross-border, transnational and interregional 
cooperation, including in the Energy Union areas. 

Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the 
EU,  established  by  the  Pact  of  Amsterdam  in  May  2016,  better  involves  cities  in  the  design  and 
implementation of policies, including those related to the Energy Union. It is implemented through 
Partnerships, in which the Commission, Member States, cities and stakeholders work together on a 
number  of  important  areas,  including  on  Energy  Transition,  Urban  Mobility,  Air  Quality,  Climate 
Adaptation and Housing. France is participating in the partnerships on Energy Transition and Climate 
adaptation, as member. 

By 2016, in the context of the Covenant of Mayors, the sustainable energy action plans delivered by 
78 French municipalities had been assessed. Overall, these 78 municipalities cover about 13.7 million 
inhabitants.  These  municipalities  committed  to  reducing  GHG  emissions  by  23.6%  by  2020  (as 
compared to 1990 baseline). In addition, 5 cities (covering 1.20 million inhabitants) have committed 
to conduct vulnerability and risk assessment and develop and implement adaptation plans. 

(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions) 

8.  Cohesion policy and EU clean energy investments  

EU  cohesion  policy  makes  a  key  contribution  to  delivering  the  Energy  Union  objectives  on  the 
ground, through European Structural and Investment Funds (ESIF) aiming to implement energy policy 
objectives in France which are complemented by national public and private co-financing in order to 
achieve optimal leverage. Cohesion policy also ensures integrated territorial solutions to energy and 
climate challenges, supports capacity building and provides technical assistance. 

Over  2014-2020,  cohesion  policy  is  investing  some  EUR  1,228  million  in  energy  efficiency 
improvements  in  public  and  residential  buildings  and  in  enterprises,  as  well  as  in  high-efficiency 
cogeneration and district heating, renewable energy and smart electricity distribution grids in France. 
Cohesion  policy  is  also  investing  significantly  in  R&I  and  in  SME  competitiveness,  based  on  the 
regional  strategies  for  smart  specialisation.  Many  regional  strategies  include  a  focus  on  energy, 
mobility and transport. Furthermore, the areas of specialisation in the fields of materials, mechanics 
and chemistry as well as the "factory of the future" cover eco-innovation issues. Finally, many smart 
specialisation  areas  chosen  by  the  French  regions  (building,  mobility,  energy,  agribusiness  etc.)  are 
strongly  characterised  by  their  sustainability.  At  this  stage,  at  least  EUR  137  million  is  foreseen  for 
investments  in  R&I  and  adoption  of  low-carbon  technologies  in  France,  but  this  might  increase 

25 

 
 
 
 Energy Union – France 

further in line with the evolving  content of  the smart  specialisation  strategies.  A  further  estimated 
EUR  811  million  is  invested  in  supporting  the  move  towards  an  energy-efficient,  decarbonised 
transport sector. 

(source: DG REGIO) 

These investments are expected to contribute to around 143,000 households with improved energy 
consumption  classification,  a  decrease  of  around  83,197,000  kWh  per  year  of  primary  energy 
consumption  of  public  buildings,  around  11,500  additional  users  connected to  smart grids  and  750 
MW  of  additional  capacity  of  renewable  energy  production,  as  well  as  to  around  50  km  of 
reconstructed or upgraded railway lines and 600 km of new or improved inland waterways. Overall, 
the  EU  cohesion  policy  investments  in  France  over  2014-2020  are  expected  to  contribute  to  an 
estimated annual decrease of GHG emissions of around 3,989,000 tonnes of CO2eq. 

For  example,  during  the  2007-2013  period,  the  French  regions  massively  reprogrammed  European 
Regional  Development  Fund  (ERDF)  programmes  to  finance  energy  renovation  in  social  housing.  A 
specific  financial  instrument  ("éco-prêt  logement  social")  was  created  to  speed  up  energy 
renovations,  and  ERDF  was  used  in  a  grant  scheme  as  an  additional  financial  resource.  EUR  220 
million  of  ERDF  generated  EUR  1.5  billion  of  total  investment.  With  the  average  ERDF  investment 
being EUR 3,276 per dwelling (17% of total investment), some 70,000 low-income households could 
benefit from improved energy performance and some 20 000 local jobs were created.  

As another example, the CAP TRI investment fund project in Hauts-de-France shows how to usefully 
combine support from the ESIF and the European Fund for Strategic Investments (EFSI), in particular 
as  it  enabled  maximising  the  private  sector  participation.  The  project  is  a  part  of  a  low-carbon 
economy  strategy  in  the  region  (Third  Industrial  Revolution  -  TRI)  intending  to  make  the  region  a 
"zero-emissions"  energy  model  by  2050,  through  investments  in  the  fields  of  renewable  energies, 
energy efficiency, energy management and smart grids, smart transport and circular economy. CAP 
TRI is a "layered” fund" which invests risk capital in enterprises developing TRI projects: the region 
participates,  using  ERDF  funding,  providing  equity  financing  alongside  public  and  private  investors. 
The  European  Investment  Bank  (EIB),  supported  by  the  EFSI,  provides  mezzanine  debt  to  the  fund 
and commercial banks provide senior debt at project level.  

As a further example, faced with a quasi-permanent saturation of the road network a large project to 
improve public transport in Martinique improved the conditions of travel and accessibility, reduced 
the environmental  nuisances  associated with  the  preponderance of  private  car  use,  reduced  travel 

26 

 
 
 
 Energy Union – France 

times  for  public  transport  users,  and  promoted  intermodal  practices.  There  are  14  intermediate 
stations along the road lane reserved for public transport and two new exchange centres with relay 
stations  in  Mahault  and  Carrère  to  improve  the  service  to  users  from  the  north  and  south  of 
Martinique.  The  multimodal  pole  of  Pointe  Simon  was  reinforced  and  the  implementation  of  high-
performance equipment and road transport systems ensured  a major qualitative leap in the public 
transport service, including increased frequency and improved passenger information systems. The 
project has improved traffic conditions for approximately 70% of the population of Martinique and 
ensured better access to commercial and business areas and the airport. The contribution from the 
ERDF was EUR 66,2 million. 

Through  its  support  to  sustainable  transport  systems,  the  Connecting  Europe  Facility  (CEF)  also 
contributes to the goals of the Energy Union. Following French participation in the CEF  – Transport 
2014-2015  Calls,  the  current  French  action  portfolio  comprises  65  signed  grant  agreements, 
allocating  EU  1,907.4  million  of  actual  CEF  Transport  Funding  to  French  beneficiaries  (state-of-play 
February  2017)29.  The  transport  mode  which  receives  the  highest  share  of  funding  is  inland 
waterways (IWW) (41.4% of actual funding). The actions aim to upgrade the IWW network, and so far 
the CEF Programme is mainly targeting the development of the Havre-Paris and Seine-Escaut axes, in 
particular the waterway connection between France and Belgium. 

In  the  maritime  portfolio,  France  is  engaged  in  improving  the  infrastructure  of  its  major  ports  to 
reduce  the  maritime  and  fluvial  bottlenecks.  Furthermore,  France  is  intensifying  its  efforts  in 
upgrading  its  maritime  links  through  more  performant  ships  and  increased  handling  efficiency  of 
ports. Together with other Member States, France is progressing in developing the intermodal freight 
transportation  by  designing  a  sustainable  incentive  scheme  and  an  investment  programme  to 
provide  integrated  short-sea-shipping  along  the  pre-defined  'Atlantis'  Motorway  of  the  Sea  freight 
route.  France  also  participates  in  projects  promoting  the  use  of  LNG  fuel  and  of  greening 
technologies for vessels. As regards to alternative fuels, France has several road actions, as well as a 
number of multimodal actions focusing on the promotion of LNG fuel. For the rail transport, France is 
committed to ongoing works along the Mediterranean and Atlantic corridor. France is also involved 
in  studies  along  the  Mediterranean,  Atlantic  and  North-Sea  Mediterranean  Corridors,  which  will 
prepare future construction phases.30 

29 

30 

 Note  that  European  Economic  Interest  Groups  and  International  Organisations  are  excluded  from  the 
analysis. 
 Source: INEA 

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