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The French government presented in the Council of Ministers on
10 February its draft 'climate and resilience' bill. The draft
incorporates several of the 149 proposals drafted by the Citizens'
Convention on Climate (Convention Citoyenne pour le Climat: CCC)
and presented to President Emmanuel Macron in June 2020 on how to
reduce domestic greenhouse gas emissions by 40% by 2030.
The National Assembly, France's lower house of parliament,
should start debating the bill in March. The government would aim
for approval by mid-2021, well ahead of the presidential election.
The MoDem and Agir parties are likely to back President Macron's
ruling La République En Marche! (LREM) party, permitting passage of
the legislation.
Key sectoral impacts
The proposed provisions would particularly affect the
automotive, aviation, mining, construction, and oil and gas
sectors. The draft includes 69 articles divided into six
thematic sections. Key provisions include a proposed ban on
advertising for polluting products such as fossil fuels and a ban
on domestic flights for routes with a corresponding train journey
taking under 2.5 hours. The sale of the most polluting categories
of vehicles would be prohibited from 2030. Housing with an F or G
energy class would be subject to additional rental cap and would no
longer be admitted to the rental market from 2028. The bill also
envisages restrictions on the construction of new commercial zones
on parklands as well as the introduction of an "ecocide" offence
and judges who specialise in environmental law.
The incorporation of the new Mining Code in the draft
'climate and resilience' bill seeks to accelerate and ensure its
adoption. The introduction of a new Mining Code was
delayed several times under previous governments. The new code
would update the current one, first drafted in 1810, modernising
the framework for extractive industries and reflecting new
technologies. The amendments would introduce stricter environmental
and social guarantees, including public consultation and
environmental analysis prior to granting project permits.
Mining exploration permits would no longer be granted
by ministerial decree; prefectural approval will strengthen the
role of the local government. The fight against illegal
mining, which according to the government is six times larger than
legal mining in French Guiana, will be a key instrument in reducing
the adverse environmental impact of mining activities.
Additionally, the ruling issued by a Paris court on 3 February
2021, which found the French state guilty of failing to take
adequate steps to cut greenhouse gas emissions, increases the risk
of delays or cancellations to high-profile mining projects in
France that have attracted strong public opposition.
Environmental issues are likely to remain a key focus in
President Macron's agenda ahead of the April 2022 presidential
election. The strong electoral results for the Europe
Ecology - The Greens (Europe Écologie Les Verts: EELV) party in the
2020 municipal elections increase the likelihood that ecological
transition and climate change will become key components of
Macron's upcoming electoral campaign. The holding of a
constitutional referendum on the inclusion of a commitment to fight
climate change in the French Constitution before the 2022 election
is also likely to remain one of Macron's objectives. Policy efforts
will be supported by allocating EUR30 billion of the 'France
Relance' EUR100-billion economic recovery programme to green
investments (thus aligning with wider EU goals previously expressed
by EU Commission President Ursula von der Leyen) for the use of EU
recovery funds.
Posted 16 February 2021 by Bibianna Norek, Research Analyst, Europe & CIS, Country Risk, IHS Markit
