1
The French « Grenelle » initiative to boost Environment, Energy Efficiency and
Climate change policies
Dr Didier Bosseboeuf
French Agency
For Environment and Energy Management
ADEME
World Bank, Washington, 2nd June 2010
2
Content
The institutional framework for energy efficiency policies implementation
The Grenelle 1 & 2 related EE measures– General data
– Measures for building, Transport , Industry, The social and economic impact of the Grenelle
An European perspective : the MURE project
A worldwild and African EE implementaion perpective : the WEC project
Conclusions
3
Institutional framework
The ministry of Ecology, energy and SD, a dedicated dpt
Others ministries (finance)
ADEME the national energy efficiency agency
Others implementing agencies (ANAH)
The Grenelle de l’environnement Laws 1&2
4
ADEME Management
State - ADEME Links
The Board : 23 Representatives / 7 from
Ministries :
industry, environment, research, transport, health,
agriculture The state holds a veto right on Board decisions
The Board adopts annual budget and other major decisions (aid regimes,
etc.)
State – ADEME 6 year-contract (2000-2006)
ADEME’s objectives and commitments
Provided budgets are allocated by the State
5
ADEME
Main areas of activities
Protecting
Air qualityby developing
monitoring and
prevention
of polluting
emissions
Reducing
the quantity
of household and
industrial wasteby promoting the
prevention of waste
production
Developing
environmental
managementin companies and
local authorities
and promoting
green products
Rehabilitating
polluted sitesContaminated
orphan sites
Encouraging
use of renewable
energy sources(solar, wind, geothermal,
biomass, biofuels, etc.)
Reducing
noiseResearch,
buildings and
transport
Managing
energyuse by developing energy-
efficient techniques in
industry, agriculture,
households and tertiary and
transport sectors
6
ADEME
is a public establishment (EPIC)
Created in 1992 from the fusion of 3 previous agencies or bodies
(waste management, air quality and energy management)
Under the joint supervision of the Ministries in charge of :
Research (MESR)
Ecology, Energy, Sustainable Development
and Sea, in charge of Green Technologies and
Climate Change negotiations (MEEDDM)
7
Acquire knowledgeBy expanding the whole knowledge in terms of technology andinnovation (studies, statistics, etc.)
Convince and mobiliseThrough communication, information, education and training
AdviseBy developing advisory services (for the French Government, localauthorities, companies, households, etc.)
Help in decision-making and implementation of actionsThrough financing exemplary projects (replicable)
ADEME’s actions
ADEME aims to be the point of reference and privileged partner for the general public,
companies and local authorities, acting as the State’s tool to generalise the good
practices designed to protect the environment and energy saving.
ADEME’s aim
8
ADEME’s Institutional Scheme
Nature, missions, organisation and management of
ADEME are defined by the Environment code
(legislation livre 1, titre III, Chapter 1, section1)
(Regulation Livre 1, titre III, chap 1 art R131-1 to R131-26:
general rules; managemeny of the agency; regional
action; financial and accounting rules
Presidential decree 18 february 2009 for the nomination of
the ADEME’s president board: the board gathers 23
representatives of which 7 from ministries.
Arrêté 13 sept 2004 : nomination of the scientific
committee
9
A new charter agreement on objectives structuring
relations between ADEME and the State
Action and results to be reach in four domains
ADEME's mandate is to accompany and assist actors in
the society and the economy in the process of reducing
and eliminating their environmental impacts and managing
energy, in the following domains:
Waste and soil
Energy and climate
Air quality and noise pollution
Cross-sectoral action
10
ADEME’s key figures
930 employees, 300 for energy efficiency
3 headquarters located in France
29 regional branches
1 office in Brussels
No research labs
A board with 23 representatives of which 7 from ministries : The Board adopts annual budget and other major decisions (aid regimes, etc.)
A scientific committee
State – ADEME 6 year-contract (2000-2006)
Now target agreements (COB) (2007-2009) (2009-2012)
11
Base ; 118
Grenelle Funds;
2 9 4
Demonstrators
160
Energy ; 572
Transversal
activities; 69
Air & Noise
8 6
Waste
2 5 9
The ADEME’sBudget for 2010
revenue from tax represents half of the total budget
Base 228 M€
Grenelle funds 319 M€
Demonstrator fund 160 M€
Total for action 986 M€
Total for action 986 M€
Operation budget 87 M€
Global budget 1 073 M€
New ! for 2010-2015 (2020)
Investments for the future 2 850 M€
- R &LC Energy 1 350 M€
- Circular economy 250 M€
- Cars for the future 1 000 M€
- Smart grids 250 M€
12
2. Energy efficiency policies implemented in France : the grenelle round table
13
Bâtiment 44 %
Transport 26 %
Industry 25 %
Others 5 %
Building
Breakdown of France total final energy consumption in 2009
Total (2009) 163 Mtoe
14
The new regulatory context
The European Climate energy Package (3X20) decided by the
European Council on December 12 2008, put EU on the way to
improve its energy efficiency of at least 20%, to increase at least
up to 20% the share of renewable energy production and to
achieve a 20% reduction of CO2 emissions by 2020
The Energy service Directive target (8% of energy savings in
2016 campared to 2008)
To divide French CO2 emissions by a factor 4 from 1990 to 2050
The “Grenelle de l’environnement”
15
Adoption of the National Commitment to the
Environment bill, known as Grenelle 2.
A major environmental bill was adopted by the French National
Assembly on 11 May 2010, known as “Grenelle 2”, confirming the
objectives of Grenelle 1 and aimed at continuing and intensifying
the ecological transformation of France.
The law deals with the main measures – project by project and
sector by sector – ratified by the first legislative package to
emerge from the Environment Round Table (Grenelle
Environnement).
It is thus an implementing and regionalising law aimed at ensuring
that environmental concerns take root in people’s day-to-day
lives and become firmly established over time.
It is also a means of simplification, acceleration and prevention,
which constitutes the “software” of the Environment Round Table and
guarantees its credibility, efficacy and irreversibility.
16
« Grenelle de l’environnement » :
a large stakeholders consultation
5 stakeholders groups : administration, parliament and local elected,
business, trade unions, environmental NGOs
Several thematic groups : climate change, biodiversity, economics and
research…
A final conference with President of Republic decisions
Two Laws presented at the Parliament (2008-2009) : Grenelle 1
(orientations and objectives) and Grenelle 2 (measures and
implementation)
A follow up by 37 committees
First priority : climate change,
GHG emissions reduction in buildings and transport
17
The building sector
The stakes :
The most energy consuming sector
44 % of the final energy consumption (71 Mtoe)
20% of national GES emissions
« Grenelle » targets :
Achievement of a 40 % energy savings before the end of 2020
18
The building sector
New buildings in 2012 (2010
for State owned buildings)
Primary energy consumption50
kWh / sq m / year
New buildings in 2020 Primary energy consumption
lower than renewable energy
produced by the building
( positive energy buildings)
Existing buildings before 2020 38% reduction of primary
energy consumption of existing
buildings
State and public bodies owned buildings
(50 et 70 M de m2) before the end of 2018
40% reduction of energy consumption and
50% for GHG Emissions
Social housing starting with 800 000
dwellings with consumption higher than
230 kWhPE/sq m/y
Full rehabilitation aiming to reduce primary
energy consumption lower than 150 kWh
PE/sq m /year.
19
Incentives measures in buildings
Tax credit for households for efficient equipment purchasing (25 to 50%)
Zero interest rate loans for buildings refurbishing or new construction
Energy efficiency obligations for energy suppliers to be realized at consumer level and certificates
Diagnostic of energy performance of buildings (mandatory)
Training of building construction professionals
Local information centers (> 200 supported by ADEME and local authorities)
20
Energy Efficiency Obligation and white certificates:
the French Scheme
An obligation of energy efficiency is set on energy suppliers
in proportion of sales for a 3 year period
First period (2006-2009) obliged are suppliers of electricity,
gas and heating fuel (globally 54 TWh) : 2 500 obliged actors
Certificates of energy efficiency are allowed to eligible actors
(suppliers, companies, local public authorities)
Energy efficiency actions should be implemented in any
consuming sectors (except ETS)
21
Energy Efficiency Obligation and white certificates :
the French Scheme
Energy efficiency standardized « actions » are identified and savings are estimated ex-ante through a standard methodology (KWh saved actualized on life time or “KWh cumac”). Non standard actions could be proposed
Certificates are delivered by administration
180 standard “actions” evaluated ex ante by ADEME and professions (including some information or training measures)
A penalty of 2 cts €/KWh for non compliance
22
Result from the first period :
84 TWh cumac saved, 56% above the obligation
Delivered certificates
23
– Including 192 Bn € for the thermal rehabilitation of
existing buildings and 13 Bn € for new buildings
anticipating further thermal regulations
– Relevant energy savings estimated up to 130 Bn€ over
the life time of these buildings
Social and economic impact of the
Grenelle laws N°1, example for the building sector
A total estimated investment higher than 205 billion euros before 2020 in the Building sector
A large set of economic tools : tax reductions,
eco-loans and loans at 0 rate, White certificates…
24
The transport sector
• The stakes :
The highest GHG emissions
26 % of national GHG emissions
32 % of total final energy consumption (51 Mtoe)
• Grenelle Target:
20 % reduction of GHG emissions before 2020,
back to the 1990 level
25
Some results of implementation
buildings
20,000 certification requests for Low Energy Buildings (Bâtiments Basse Consommation) (20 times more than in 2007).- 120,000 zero-interest eco-loans signed.- 40,000 social housing units renovated (out of the 800,000 scheduled for renovation).
Obligation to inform future occupants of housing units about energy efficiency.- Simplification of procedures for performing thermal renovation work on property held in co-ownership.
26
Transport sector
20% of GHG emission reduction in 2020, back to the 1990 level
2020 Goods Transportation Share of non road transport higher than 14 - 25%.
Improvement of road goods transportation
Eco driving, tolls without stop
Eco tax starting on 2011
Support to rail Transport ,
Including
Investments : 400 M€ / y
+ additional 50 M€ investments
Support for river goods transportation, including links Seine North and Rhône Moselle
Network rehabilitation
4 Bn € investment
Support sea transportation
Including sea highways
Development of harbor capacity
Increasing the share of 5 - 10%
27
Passenger transport
Passenger transport Reducing of the use of fuel from oil, GHG emissions, atmospheric pollution and others harmful effects,
Air transport Reduction of energy consummation down to 50% in km x passenger
High speed train Additional 2000 km high speed railways and definition of additional program of 2500 km
Public transportation Increase public urban transportation on dedicated site from 300 à 1800 km,
2.5 Bn € investment,
Including Metro in « Ile de France »
Reduction of cars emissions From 176 g of CO2 /km to 130 g en 2012, and for new cars, a mean value of 120 g in 2020
28
Measures in transport
European agreement on cars efficiency : 120 g CO2/Km for new cars in 2012
Car labeling
Bonus Malus on cars purchasing
Car scraping subsidies (function of replacement efficiency)
Motor-fuel taxes
29
Feebates (bonus-malus) for cars in France
Source: G Callonnec, N Blanc, ADEME
Negative value: subsidy (“bonus”)
Principle: the revenue of the tax and the volume of subsidies should be balanced (no
cost for the public budget) planned to be expanded to consumer goods
120gCO2/km~5l/100km
140gCO2/km~6l/100km
30
Policies works: Bonus Malus for cars succeeded to
transform the market in 1 year
31
Industry : Emission Trading Scheme
Quotas will be progressively auctioned (not free)
- 20% in 2013 (100% for electricity producers)
- 70% in 2020
- 100% in 2027
300 M quotas will be reserved for clean technologies development (CCS demonstrators, RES)
Incentives for industry outside ETS
32
Some results of implementation
Transport
cars- Reduction of average CO2 emissions of new vehicles from 149 g per km to 131 g per km (or 1 g per month versus 1 g per year previously).- 2.5 million vehicles benefited from the ecological bonus.- The French fleet of new vehicles is the most “sober” in Europe.- Ecological super bonus of €5,000 for the purchase of very-low-emission vehicles. - Public contract for 60,000 electric vehicles.
Advances of Grenelle 2:- Municipalities have the option to create and maintain charging infrastructures for electric vehicles. - A “car-sharing” label is being created.
Public transport:Breakthroughs obtained:- Construction of 365 km of additional public transport lines (double the existing offer and greater than the total for the last 34 years).- Launch of a second invitation to tender (that will triple the current network).- Launch of five new high-speed rail lines (totalling 660 km).
33
KP commitement; France on the tracks
According to an inventory published in February 2010, France’s greenhouse gas emissions are estimated at about 527 million metric tonnes of carbon dioxide equivalent (MtCO2e) for the year 2008, or a reduction of 0.6% compared with 2007. They are thus 6.4% lower than the ceiling of 564 MtCO2e set by the Kyoto Protocol for the 2008-2012 period. Since the application of the Kyoto Protocol began in 2008, it is clear that France scrupulously respects its international commitments.
The reduction registered in 2008 follows a reduction of 2% in 2007, despite harsher climate conditions in 2008 than in 2007. With this new decrease, France reached the lowest historical level since 1990, but wishes to go much further: with the Environment Round Table, France should in fact reduce its greenhouse gas emissions by 22.8% in 2020, with reference to its 1990 emissions.
34
The Grenelle law N°1 and energy
Many additional measures such as :
A balance with research funding for nuclear civil application on one side and clean technologies and environmental protection on the other side is to be reach before the end of 2012
– €1 for research on civil nuclear application = €1 for research on Clean technologies including renewable energy and prevention of harmful environmental effects
Demonstration fund on energy managed by ADEME– (150 million euros already available in addition to the ADEME budget for
2009)
Feasibility study for a ”Climate-energy” taxation applied on fossil energy consumption considering effects of GES emissions and balanced by an equivalent reduction of the global tax system
First ban of inefficient products expected by 2010 for incandescent light bulbs
35
Conclusions/recommendations
1. Price policy which reflects the real cost is a perequesite
2. Energy efficiency institutions such as agencies are implemented
everywhere. Appropriate institutional framework should be established.
3. Policies rely increasingly on quantitative targets of energy efficiencyimprovements
4. Regulations remain the favourite instrument in the household sector
5. Buildings regulations are spreading and extended to existing building
6. Labelling and standards for electrical appliances are spreading to a largerset of appliances and countries
7. To remain effective, regulations must be regularly revised and updated to stimulate technical progress
8. Financial incentives rely more and more on tax incentives than on direct subsidies
9. Innovative measures are necessary to fully inform consumers
36
Conclusions et recommendations (2)
1. The access to the required funding in order to sustain the implementation
2. A collaboration between the public and private sector (banks, installors…) to develop complete energy efficiency services offer
3. Quality control of promoted equipment and certification.
4. An exemplary role of the public sector;
5. The need to address all end-uses where exist with an energy efficiency potential
6. The adaptation of measures to each national specificities
7. The integration of energy efficiency concerns in other policies;
8. Each policy has shown its effectiveness somewhere in a given period but this is the optimisation in a package of measures which is the most relevant strategy.
37
Thank you for your attention
For more information: www.worldenergy.org www.ademe.fr www.odyssee-indicators.org www.MURE2.com
