The global shift to sustainable sources of energy no longer seems to be a fleeting trend, but rather a necessity. With energy requirements surpassing all-time-highs - hinting at further growth - France’s progress in energy transition sparks much needed respite during volatile times. This beckons the question, what is France doing right, and how can the world derive inspiration and ideas from its approach?

What is France doing right?

France has been among the earliest thought leaders of global energy transition. As host of the COP21 and the Paris agreement, France is widely seen as a frontrunner in energy transition by the international community. This position held by France has been cemented with the help of its commendable progress and latest ranking at the no. 5 spot in the Energy Transition Index 2024 (ETI). There are several factors that have supported this growth and unlocked latent potential for growth in this sector for France:

• France was one of the first countries to enact a climate law.

• In 2019, the government put into legislation the goal of reaching net zero emissions by 2050.
• France has promoted green finance and a green budgeting approach across government, aligning national expenditure and revenue processes with climate and other environmental goals.
• The government’s 2030 Investment programme and its economic recovery plan are among the most ambitious globally in terms of clean energy transitions, with innovative funding schemes to encourage building retrofits and low-carbon transport.
• Due to its effective energy efficiency policies, resulting in a 12% reduction in energy intensity, France has bagged the no. 5 spot on the ETI 2024.
  
• The Mobility strategy and 2019 Law on mobility orientation require all sales of new passenger cars to be zero emission by 2040.
  
• France has committed to producing over 1 million EVs by the end of 2027

France’s initiative to act with urgency has culminated in industry expertise and tangible results for the country. Their efforts have had positive effects on a range of sectors such as -

• Automotive sector: In 2023, 26% of new cars sold in France were battery electric and plug-in hybrid vehicles, marking a 47% jump from 2022. France continues to promote EV adoption through initiatives like a social leasing program, allowing lower-income drivers to lease electric cars for as low as €100 per month.
  
• Industrial sector: France proposed a EUR30 billion investment plan for 2030, in which EUR 8 billion is dedicated to energy technology investment in the decarbonisation of industry, in hydrogen and small modular reactors.
  
• Renewable energy sector: From 2010-2020, wind and solar photovoltaic (PV) electricity generation increased, driving the share of renewables in electricity generation from 14% in 2010 up to 23.4% in 2020.(PV energy production in France grew an impressive 18 percent between 2022 and 2023)

Final thoughts

France is emerging as a true leader in the Energy Transition race, but it still has a long way to go. With several risks still threatening to hinder progress, global efforts towards energy transition must be fortified and consistent. Laws, regulations, incentives, awareness and encouragement favouring sustainable energy, clean technologies, and green alternatives to otherwise unsustainable products must be introduced if countries want to make a true difference not only within their borders, but in the world.