Developments in sustainability policy in France

1. Developments in sustainability policy in France “Fostering Economic Growth through Low Carbon Initiatives in Thailand” P. Criqui AFD Bangkok Seminar February 25-26, 2010

2. The Commission on the Measurement of Economic Progress and Social Performance (Sen-Stiglitz-Fitoussi, 2008-2009) • Classical GDP issues: • Improving the measurements (govt. services, defensive expenses …) • Bringing out the households’ perspective (income, distribution issues) • Quality of life and measurements: • Subjective measures • Objective measures (health, education, insecurity …) • Sustainable development and the environment: • Dashboards, composite indexes, adjusted GDP • Focus on overconsumption or underinvestment (Adjusted Net Savings: is the global stock of resource left to future generations increasing or decreasing ?) • Distinguish between measurement of current well-being and its sustainability in the future • « A monodimensional view of sustainability remains certainly out of reach. But we want to end up at most with a limited set of indicators – a ‘micro’ dashboard – and one that is specifically dedicated to the sustainability issue »

3. A comprehensive legal and regulatory framework: the Grenelle de l’environnement or Environmental New Deal, #1 and #2: • For Buildings: • Confirmation of all existing energy and climate policies such as Factor 4 reduction in 2050 emissions, 23% Renewables in TPES for 2020 (European 3x20), implementation of the Plan for Buildings with less than 50 kWhEP/m2/yr in new buildings after 2012, Climate Plans for Cities • For Transports: • Modal shift to freight transport • Accelerated programmes for collective transports and high speed trains • For Biodiversity, Agriculture, Forest and the Sea: • Confirmation of the Green and Blue Belts, with integrated management of agriculture, forests and sea resources • Measures to stop biodiversity losses in every sectors • … Health and environment • … Waste management policies • … Governance and information • … Sustainable development in Overseas French territories

4. Roadmaps for 17 Green technologies • Biomass / energy • Biomass / materials • Biofuels / transport • Green chemicals • Waste recycling • Wind energy • Energy from the sea • Industrial process optimization

5. Roadmaps for 17 Green technologies • Geothermal • CO2 Capture and Storage • Photovoltaic • Zero Carbon Vehicle • Smartgrids • Metrology and instrumentation • Logistics and flow management • Energy efficiency in building • Electricity storage and batteries

6. Developing a system of economic instruments or giving a price to carbon: 1. emission quotas for large industries • Since 2005, about 1100 industrial establishments, representing 1/3 of GHG emissions in France are covered by the European Emission Trading System • Industries are provided with quotas for a given period and then have to respect their total emissions or buy quotas from other participants to the market • The first phase of implementation (2005-2007), with free quotas has shown some flaws, with low and unstable price • But these initial difficulties should be superseded in the second and third phases (2008-2012 and 2013-2020), with the introduction of more severe endowments and of the auctioning of quotas for non exposed industries

7. Developing a system of economic instruments or giving a price to carbon: 2. the Carbon tax for diffuse emissions • The introduction of a carbon tax for diffuse emissions (building, transport, small industries) is considered in France since many years now • A series of government commissions, have prepared the project, including for the identification of the right level (CAS [French NESDB] : 32 €/tCO2 in 2010, 100 €/tCO2 in 2030) • Last autumn, the project has been adopted by the parliament … but unexpected political and constitutional difficulties arose in the implementation • Now the government is redefining the scheme … for now, the problem of the social and political acceptability of the carbon tax have not been solved