National energy and climate plan: what France risks if it fails to comply

By failing to meet its renewable energy targets for 2020, and refusing to set similar targets for 2030. France risks a heavy fine and the freezing of European funds. But in practice, imposition of penalties seem a long way off.   

Like all EU countries, France was obliged to submit a final National Energy and Climate Plan (NECP) to the European Commission by yesterday (30 June). NECPs summarise how a country’s climate and energy ambitions align with European targets.   

The French Energy ministry did not respond to queries on Friday 28 June, however, Euractiv understands France’s final NECP was not submitted by the deadline. 

In a confrontational approach, France refused to include in its NECP a 2030 target of 44% renewable energy in its final gross energy consumption. The Commission has set this target for France, as part of an EU-wide drive for renewables to reach 42.5% by 2030.

The Commission has already criticised an earlier draft version of France’s NECP, for not including targets for renewables.

Furthermore, France’s 2020 target – 23% of renewable energy – has still not been met.  

If  Paris continues to miss the 2020 targets and refuses to include a 2030 renewable target, it could face legal action and ultimately a financial penalty.  

Options to comply

If France wants to belatedly comply with its 2020 target, and get on track to meet its 2030 target, it has a few options, beyond just deploying more renewables.

Firstly, the French could in theory purchase ‘statistical megawatts’, i.e. paying countries which beat their own targets, in return for their surplus renewable energy counting towards their target.

French energy minister Agnès Pannier-Runacher announced that the country was talking to Sweden and Italy about such a deal in November 2022.

But there has been no mention of this in recent months, this may no longer be a viable option, a source close to the matter told Euractiv.

Alternatively, France could take part in pan-European renewable tenders to contribute towards projects in other EU countries. Participation to this ‘renewable energy financing mechanism’ is on a voluntary basis, and to date France has not expressed a wish to get involved.

Government financing of wind or solar projects in other member states, rather than in France, may not also be a politically attractive option.

It is unclear what efforts France is currently making to comply. At the end of May a Commission spokesperson told Euractiv that the institution is “still engaged in a dialogue with France on this matter.”

At the French Energy ministry, “time is very much on hold,” due to the political situation following the dissolution of the National Assembly, a source from the energy ministry told Euractiv.

If it does not comply, the Commission could turn to legal procedures.

Legal procedures

This would begin with a formal notice to comply with EU legislation. If this does not work, the Commission would then issue a ‘reasoned opinion’, ultimately referring the matter to the EU Court of Justice (EUCJ), which could issue a judgment for failure to fulfil obligations.

In the case of a continued failure to comply, the Commission would need to wait for a potential second ruling by the EUCJ before imposing potential financial penalties.

There is no legal deadline imposed on the Commission for launching legal proceedings. Generally, the procedure takes “more than two years” from the first referral to the EUCJ, Professor Gaëlle Marti, a specialist in European law at Jean Moulin Lyon 3 University, tells Euractiv.

In terms of penalties, “the amount of the fine depends on the seriousness of the breach,” Professor Gaëlle Marti said. “In the case of France (…) the amount needed to purchase the statistical MWs, i.e. around €500 million, could play a role in determining the amount of the penalty”, she continues.   

Aid freeze

Already France’s non-compliance may block the payment of funds from the European Regional Development Fund (ERDF). The ERDF funding requires countries to respect certain ‘enabling conditions’ – including one concerning renewable energy.

In a letter sent to French authorities at the end of April, the Commission’s regional policy directorate said that the information they received from France did not show that the country is doing enough on renewable energy.

Political considerations

The Commission has a lot of discretion – it is also possible that it may choose not to go through with legal procedures.   

The executive might be more inclined to seek an “amicable” agreement, believes Phuc-Vinh Nguyen, energy policy researcher at the Jacques Delors Institute. Especially given the rise of the renewables-skeptic hard right in France, and the upcoming discussions on EU 2040 climate targets.

[Edited by Donagh Cagney/Rajnish Singh]

Read more with Euractiv