France
Adding people power to green policy
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”. Some feared that the gilet jaunes protests - sparked in part by opposition to green taxes – may have put the brakes on France's ecological transition. Yet in the face of COVID-19, France has reaffirmed its commitment to green recovery, thus setting a leading example of aligning ecological with economic recovery.
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. France has a strong track record of leading from the front on the environment, and in 2019 became the first G7 country to commit to carbon neutrality by 2050.1
However, in late 2018, the Gilets Jaunes protests appeared to have derailed France’s green transition.2 An overstretched public welfare system, rising income inequality and political disenfranchisement led to significant social unrest, forcing the Macron government to rethink its approach to green legislation. A Citizen’s Convention on Climate, launched in May 2019, 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.3
Perhaps it was the foundations of this people-first approach that has allowed France to smoothly integrate green and environmental goals into its COVID-19 economic stimulus programme. The “Plan de Relance” explicitly addresses both ecological sustainability and economic justice, and allocates 30% of stimulus funds to green projects including clean transport, energy efficiency, youth reskilling and decarbonisation.4
France remains a salutary lesson to other governments. Voters 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. The gilet jaunes protests are a reminder than ordinary people will not accept environmental policy imposed from above. But the country’s world-leading green recovery plans are a sign that a people-first approach can deliver significant ambition.
Policy Scores
Last updated 17 Nov 2020
Green COVID-19 Recovery
France sets an excellent example of how to integrate green policy into economic stimulus measures (totalling USD$579 billion, approximately 21% GDP) aligned with a longer term vision for economic and ecological recovery. Green conditions have been central to bailouts of Air France and Renault, alongside considerable green consumer incentives and R&D subsidies in automotive and aviation sector support plans.
Measures for a deeper, structural transition are exemplified in the comprehensive “Plan de Relance” which spans two years, covers climate, ecological sustainability and a just transition, and allocates 30% of its stimulus funds explicitly to green measures. This includes substantial direct investment in green infrastructure and transport (US$9.5 billion), improving the energy efficiency of buildings (USD$7.4 billion), and developing clean hydrogen and other green technologies (USD$10.5 billion) to decarbonise industry and transport. Environmental elements include a wasteland fund for restoration and clean-up of urban spaces (USD$350 million), as well as support for biodiversity and ecological improvements in agriculture, fishing and forestry. To avoid widening inequalities, the plan also contains a series of solidarity measures, including supporting the young and most vulnerable to find alternative employment (assisting businesses with recruitment, increasing training courses and creating 400,000 retraining apprenticeships), meanwhile extending the job furlough scheme for two years as a safety net.
Taken together, these actions demonstrate a robust commitment to green stimulus, yet there remains room for improvement - with concerns raised over the stringency of government bailouts, and the French National Assembly’s decision to vote down stronger measures in the Amending Finance Law (requiring companies benefiting from state aid to publish carbon emissions), a Paris agreement aligned trajectory and a business plan to reach this goal.
France sets an excellent example of how to integrate green policy into economic stimulus measures (totalling USD$579 billion, approximately 21% GDP) aligned with a longer term vision for economic and ecological recovery. Green conditions have been central to bailouts of Air France and Renault, alongside considerable green consumer incentives and R&D subsidies in automotive and aviation sector support plans.
Measures for a deeper, structural transition are exemplified in the comprehensive “Plan de Relance” which spans two years, covers climate, ecological sustainability and a just transition, and allocates 30% of its stimulus funds explicitly to green measures. This includes substantial direct investment in green infrastructure and transport (US$9.5 billion), improving the energy efficiency of buildings (USD$7.4 billion), and developing clean hydrogen and other green technologies (USD$10.5 billion) to decarbonise industry and transport. Environmental elements include a wasteland fund for restoration and clean-up of urban spaces (USD$350 million), as well as support for biodiversity and ecological improvements in agriculture, fishing and forestry. To avoid widening inequalities, the plan also contains a series of solidarity measures, including supporting the young and most vulnerable to find alternative employment (assisting businesses with recruitment, increasing training courses and creating 400,000 retraining apprenticeships), meanwhile extending the job furlough scheme for two years as a safety net.
Taken together, these actions demonstrate a robust commitment to green stimulus, yet there remains room for improvement - with concerns raised over the stringency of government bailouts, and the French National Assembly’s decision to vote down stronger measures in the Amending Finance Law (requiring companies benefiting from state aid to publish carbon emissions), a Paris agreement aligned trajectory and a business plan to reach this goal.
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
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Reuters: “France sets 2050 carbon-neutral target with new law”, June 2019
- 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
- Government of France, "Plan de Relance", January 2021