The definitive version of the draft law on energy and climate, as agreed by the French commission paritaire mixte, was adopted by the National Assembly and the Senate on 11 and 26 September respectively.
In the context of a general mobilization for climate change and following the alarming report of the Intergovernmental Panel on Climate Change (IPCC) regarding the impacts of global warming, this law incorporates the "ecological and climate emergency" in the Energy Code. It marks a major step forward in order to raise “France's ambitions" and also updates France energy policy objectives, notably in order to take into account the climate plan adopted in July 2017, namely: carbon neutrality by 2050, a 40% reduction in fossil fuels by 2030 and a postponement to 2035 (compared to 2025 previously) of the reduction to 50% of the nuclear share in the energy production.
The law sets up a system aiming to limit the greenhouse gas emissions in the electricity production sector as from 1 January 2022, which may potentially lead to the closure of coal-fired power plants by 2022. It also aims to reinforce action against fraud related to energy saving certificates (EEC).
A number of measures concerning vehicle manufacturers and the gradual disappearance of energy-intensive housing called "thermal strainers" are introduced.
The law also reinforces the environmental reporting set up by Law n°2015-992 as of 17 August 2015 on the energy transition for green growth. As a reminder, Article 173 of this law amended Article L. 533-22-1 of the Monetary and Financial Code requiring institutional investors to inform their subscribers of their process for taking into account criteria "relating to compliance with social, environmental and governance quality objectives and the means implemented to contribute to the energy and ecological transition".
Article 29 of the Climate Energy Act extends this obligation to credit institutions, investment firms for their portfolio management activities on behalf of third parties and investment advice, as well as to the Caisse des dépôts et consignations.
In addition, asset management companies will now have to publish their sustainability risk policies on their websites. These policies should include information on the risks associated with climate change and biodiversity and should be included in the non-financial performance declarations of the companies required to do so.
A decree must specify the information to be provided and the method to be used for updating such information. However, as with non-financial reporting, companies may choose not to publish certain information if they provide sufficient reasons for not doing so.
The law was promulgated on November 8, 2019 and published in the French Journal Officiel on November 9, 2019.
For further information: Law n° 2015-992 as of 17 August 2015 on the energy transition for green growth.
