France

Adding people power to green policy
Note: The Tracker was initially designed and researched before the emergence of the COVID-19 pandemic. While we believe that the social, environmental and economic policies that the Tracker charts are more vital than ever in a post-COVID world, we welcome feedback on how the Tracker countries are stepping up - or stepping back - their ambition in these areas.
France has some of the world’s most ambitious climate laws, combined with high-level government commitment to global leadership as personified by President Macron’s pledge to “Make Our Planet Great Again”. But have the gilet jaunes protests - sparked in part by opposition to green taxes - put the brakes on France's ecological transition?
Ranked first in a 2017 assessment of EU decarbonisation plans, the Stratégie Nationale bas Carbone (SNBC) establishes ambitious and legally binding carbon budgets, a carbon pricing trajectory to 2030, and clear processes to develop and monitor the low-carbon transition. The country has a strong track record of leading from the front on environmental matters: in 2015, France became the first country in the world to introduce mandatory climate change-related reporting for institutional investors, and in 2019 committed to carbon neutrality by 2050, one of the first G7 countries to do so.1
However, these ambitions have not always been met with success on the ground. Progress has been hampered by complex governance: too many reports, too many parallel strategic documents, weak compliance mechanisms, and limited parliamentary oversight. The country is on track to miss its 2020 and 2030 renewable energy targets, and the dramatic resignation of Environment Minister Nicolas Hulot on live radio in August 2018 points to internal government tensions over policy.2
But the greatest threat to France’s green economy transition is social. Long-festering shortcomings in the country’s public welfare systems, combined with the failure to deal with rising income inequality and political disenfranchisement, has contributed to resurgent nationalism, unstable parliamentary politics, and significant social unrest – as typified by the Gilets Jaunes protests of late 2018.3
Forced by significant public pressure to roll back planned fuel taxes, the Macron government has had to re-think its approach to green legislation. The new Citizen’s Convention on Climate, launched in May 2019, has created a people’s assembly of 150 randomly selected citizens tasked with overhauling environmental law – producing policy from the people, rather than imposing it from above.4
France remains a salutary lesson to other governments. Large majorities of citizens are concerned about climate change and want to see action. But they want green policies that will benefit everyone, not just elites, and they want the costs of those policies to fall fairly on the shoulders of those most responsible. A green economy must be a fair economy first.
Policy Scores
Last updated 10 Dec 2019
Governance
National green economy plan
France’s 2015 Stratégie Nationale bas carbone (SNBC) is a world leader in effective climate law. The SNBC establishes ambitious and legally binding carbon budgets, a carbon pricing trajectory to 2030, and clear processes to develop and monitor the low-carbon transition. Integration of ambitious targets with economic policies is credible, however the complexity and lack of parliamentary accountability are weak points.
France’s 2015 Stratégie Nationale bas carbone (SNBC) is a world leader in effective climate law. The SNBC establishes ambitious and legally binding carbon budgets, a carbon pricing trajectory to 2030, and clear processes to develop and monitor the low-carbon transition. Integration of ambitious targets with economic policies is credible, however the complexity and lack of parliamentary accountability are weak points.
Inclusive governance
A strong commitment on paper to gender-sensitive consultation and participation is driving improvements in civil society and citizen involvement in public policy, but starting from a low base on gender. Corporate governance is in the process of reform, with adoption of Loi PACTE in 2019 strengthening corporate social and environmental responsibility, employees' representation and gender equality requirements for listed companies.
A strong commitment on paper to gender-sensitive consultation and participation is driving improvements in civil society and citizen involvement in public policy, but starting from a low base on gender. Corporate governance is in the process of reform, with adoption of Loi PACTE in 2019 strengthening corporate social and environmental responsibility, employees' representation and gender equality requirements for listed companies.
SDG business strategy
Some efforts to integrate the SDGs into corporate social responsibility (CSR) protocols; most companies listed on the French stock market report on their engagement with the SDGs; and businesses and trade unions are consulted on France’s SDG Roadmap. However, a crosscutting reporting strategy is lacking, and business engagement is purely voluntary.
Some efforts to integrate the SDGs into corporate social responsibility (CSR) protocols; most companies listed on the French stock market report on their engagement with the SDGs; and businesses and trade unions are consulted on France’s SDG Roadmap. However, a crosscutting reporting strategy is lacking, and business engagement is purely voluntary.
Wealth accounting
Some long-running work on moving France beyond GDP from the influential Stiglitz-Sen-Fitoussi Commission, but no specific wealth accounting processes underway. Natural capital accounts and pilot schemes are relatively developed, and the most advanced component of wealth accounts - other than economic accounts.
Some long-running work on moving France beyond GDP from the influential Stiglitz-Sen-Fitoussi Commission, but no specific wealth accounting processes underway. Natural capital accounts and pilot schemes are relatively developed, and the most advanced component of wealth accounts - other than economic accounts.
Finance
Green finance plan
Strong, public political commitment to sustainable finance, including the implementation of recommendations from the Task Force on Climate-related Financial Disclosures (TFCD). National and EU-level measures on disclosure and labelling; France also a global leader in green bond issuance.
Strong, public political commitment to sustainable finance, including the implementation of recommendations from the Task Force on Climate-related Financial Disclosures (TFCD). National and EU-level measures on disclosure and labelling; France also a global leader in green bond issuance.
Green fiscal & monetary policy
Some green fiscal policies, but with some important setbacks (e.g. planned carbon tax abandoned after 2018 ‘Gilets Jaunes’ protests). Monetary reform is constrained by the European Central Bank (ECB), but ministers have committed to implementing recommendations of the Network for Greening the Financial System (NGFS). No cross-cutting review of green fiscal and monetary reform is yet envisioned.
Some green fiscal policies, but with some important setbacks (e.g. planned carbon tax abandoned after 2018 ‘Gilets Jaunes’ protests). Monetary reform is constrained by the European Central Bank (ECB), but ministers have committed to implementing recommendations of the Network for Greening the Financial System (NGFS). No cross-cutting review of green fiscal and monetary reform is yet envisioned.
Safe & accountable banks
Limited national legislation in this area, but EU law includes regulation & supervision on stress testing. Climate stress tests have been proposed under the French Energy Transition Act 2015, but existing measures (such as a 0.3% financial transaction tax on stocks) are largely symbolic. No plans for social stress testing, and no disincentives for investing in the brown economy.
Limited national legislation in this area, but EU law includes regulation & supervision on stress testing. Climate stress tests have been proposed under the French Energy Transition Act 2015, but existing measures (such as a 0.3% financial transaction tax on stocks) are largely symbolic. No plans for social stress testing, and no disincentives for investing in the brown economy.
Pricing carbon
France participates in the EU Emission Trading System (ETS), but low carbon prices remain a problem. A domestic carbon price floor has been considered, but the French government is cautious on “green taxes” following Gilets Jaunes opposition. Further policy measures are anticipated soon.
France participates in the EU Emission Trading System (ETS), but low carbon prices remain a problem. A domestic carbon price floor has been considered, but the French government is cautious on “green taxes” following Gilets Jaunes opposition. Further policy measures are anticipated soon.
Sectors
Green sectoral policy plan
France has undertaken some green transition planning, overseen by the Office of the Commissioner General for Sustainable Development (CGDD) and the National Council for Ecological Transition (CNTE). But current strategy lacks detail at the sectoral level, with weak targets in several key sectors like housing energy consumption, agriculture and renewables.
France has undertaken some green transition planning, overseen by the Office of the Commissioner General for Sustainable Development (CGDD) and the National Council for Ecological Transition (CNTE). But current strategy lacks detail at the sectoral level, with weak targets in several key sectors like housing energy consumption, agriculture and renewables.
Small business support
A pioneer in the development of the ‘social economy’ concept under the 2014 “Loi Economie sociale et solidaire” (ESS), France has strong SME and social enterprise legislation, with government support schemes for both training and financing of SMEs. Government ambitions to provide specific support to the SME and green sectors are limited by EU competition rules.
A pioneer in the development of the ‘social economy’ concept under the 2014 “Loi Economie sociale et solidaire” (ESS), France has strong SME and social enterprise legislation, with government support schemes for both training and financing of SMEs. Government ambitions to provide specific support to the SME and green sectors are limited by EU competition rules.
Carbon budgeting
Carbon budgets have been adopted with some legally binding elements, but enforcement and judicial review are slightly weaker than with some peers (e.g. UK), with limited parliamentary oversight or involvement.
Carbon budgets have been adopted with some legally binding elements, but enforcement and judicial review are slightly weaker than with some peers (e.g. UK), with limited parliamentary oversight or involvement.
Clean energy policy
France’s renewable energy targets are adequate, but the 23% RE by 2020 target is on course to be missed and the 2030 target is also in doubt. A lack of a clear pathway to 2050 indicates only half-hearted political support for non-nuclear renewable energy. The role of nuclear itself in France’s future low-carbon energy mix remains a contentious issue.
France’s renewable energy targets are adequate, but the 23% RE by 2020 target is on course to be missed and the 2030 target is also in doubt. A lack of a clear pathway to 2050 indicates only half-hearted political support for non-nuclear renewable energy. The role of nuclear itself in France’s future low-carbon energy mix remains a contentious issue.
People
Green jobs
France’s 2017 Ecological Transition Plan mentions the circular economy, social fairness and tackling inequality, but lacks clear targets or a specific green jobs plan.
France’s 2017 Ecological Transition Plan mentions the circular economy, social fairness and tackling inequality, but lacks clear targets or a specific green jobs plan.
Pro-poor policy
Some exploratory work has been done on integrating sustainability and poverty reduction strategies, especially in the area of energy poverty. But environmental sustainability is largely absent from existing social protection legislation. Following the Gilets Jaunes protests of late 2018, avoiding regressive green policies and addressing France’s growing income inequality has emerged as a priority for government.
Some exploratory work has been done on integrating sustainability and poverty reduction strategies, especially in the area of energy poverty. But environmental sustainability is largely absent from existing social protection legislation. Following the Gilets Jaunes protests of late 2018, avoiding regressive green policies and addressing France’s growing income inequality has emerged as a priority for government.
Participatory policymaking
Public investments and policies are systematically reviewed regarding their socio-environmental impact, with a mandatory public consultation process. However, the impact of policies on specific vulnerable social groups is under-studied, and comparatively little attention is given to gender issues. Compliance and enforcement is also questionable.
Public investments and policies are systematically reviewed regarding their socio-environmental impact, with a mandatory public consultation process. However, the impact of policies on specific vulnerable social groups is under-studied, and comparatively little attention is given to gender issues. Compliance and enforcement is also questionable.
Innovative social protection
France’s commitment to classical 20th century forms of welfare has restricted innovation, and the current system is marginally less redistributive than the OECD average. Small-scale pilot schemes for Universal Basic Income and local job creation projects have had little impact.
France’s commitment to classical 20th century forms of welfare has restricted innovation, and the current system is marginally less redistributive than the OECD average. Small-scale pilot schemes for Universal Basic Income and local job creation projects have had little impact.
Nature
Ocean & land conservation
France has a comprehensive impact assessment framework for the SDGs, with voluntary measures for businesses to integrate SDGs into CSR reporting. However, the targets are not legally binding and lack compliance procedures.
France has a comprehensive impact assessment framework for the SDGs, with voluntary measures for businesses to integrate SDGs into CSR reporting. However, the targets are not legally binding and lack compliance procedures.
Natural capital accounts
A basic plan to implement natural capital accounting exists, and some basic environmental reporting on energy, land and material consumption has started, but both the 2016 and 2018 biodiversity protection plans do not include any valuation measures.
A basic plan to implement natural capital accounting exists, and some basic environmental reporting on energy, land and material consumption has started, but both the 2016 and 2018 biodiversity protection plans do not include any valuation measures.
Natural capital committee
France’s independent biodiversity committee (CNB), created in 2016, lacks enough weight in regulatory matters to be effective, with no mandate for natural capital research or policy input.
France’s independent biodiversity committee (CNB), created in 2016, lacks enough weight in regulatory matters to be effective, with no mandate for natural capital research or policy input.
Nature-based fiscal reform
Taxation on environmentally harmful activities is average for the EU and falls mostly on the energy sector, although taxes on transport, pollution, and resource use are relatively low. Significant fossil fuel subsidies remain, estimated at €8 billion p.a. despite a G7 commitment to phase them out.
Taxation on environmentally harmful activities is average for the EU and falls mostly on the energy sector, although taxes on transport, pollution, and resource use are relatively low. Significant fossil fuel subsidies remain, estimated at €8 billion p.a. despite a G7 commitment to phase them out.
References
- Reuters: “France sets 2050 carbon-neutral target with new law”, June 2019
- FT: “French environment minister Nicolas Hulot resigns”, August 2018
- Green Economy Coalition: “Green hearts and gilets jaunes”, March 2019
- The Times (UK): “President Macron draws on people power to turn France green”, May 2019