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The institutional framework for energy efficiency policy implementation in France

III Seminario Latinoamericano y del Caribe de Eficiencia Energética/ III Latin-American and Caribbean Energy Efficiency Seminar OLADE,Panama 7-8th July 2010. The institutional framework for energy efficiency policy implementation in France Dr Didier Bosseboeuf (ADEME)

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The institutional framework for energy efficiency policy implementation in France

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  1. III Seminario Latinoamericano y del Caribe de Eficiencia Energética/ III Latin-American and Caribbean Energy Efficiency Seminar OLADE,Panama 7-8th July 2010 The institutional framework for energy efficiency policy implementation in France Dr Didier Bosseboeuf (ADEME) French agency for environment and energy management

  2. Content • The french institutional framework for energy efficiency policies implementation • The role of the french energy efficiency agency ADEME • framework, • missions • budget • Conclusions: issues of governance for an energy efficiency agency

  3. Existence of national energy efficiency agencies (WEC ADEME survey) 2/3 of countries with a national agency (almost 90% in EU) • About 90% of countries with either an agency or a Ministry department on energy efficiency • About 60% of countries with regional or local agencies (50% in previous survey) • Multiplication of local and regional agencies : • almost 1300 at world level, • of which about 900 in Europe (against 600 in previous survey) 3

  4. The french institutional framework is influenced by the European framework • EU targets • 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 compared to 2008). • The EU directives such as on label, Eco-design, energy services (ESD), label, ecodesign, Energy performance building directive (EPBD), Emissions trading scheme (ETS), directyive on cogeneration, • EU coordinated policies (ex VA on emissions for new cars)

  5. « Grenelle de l’environnement » :A new governance based on 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… • 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

  6. 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 2011 for incandescent light bulbs

  7. 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 regionalisinglaw aimed at ensuring that environmental concerns take root in people’s day-to-day lives and become firmly established over time.

  8. The french Institutional frameworkMany actors of which the national agency (ADEME) • The Grenelle de l’environnement Laws 1&2 • The Ministry of Ecology, Energy and Sustainable Development and Sea, a dedicated departement for energy efficiency (25 persons) • Others ministries can implement policies (finance) • ADEME : the national EE implementing agency • Others implementing agencies (i.e. ANAH for retrofiting) • Other local or regional agencies or local authorities • No direct link with the energy regulator • Change in the energy market (liberalisation) has not affected the framework

  9. Ministry of Ecology, Energy and SD and planning Intermin. delegate planning territorries State Minister General council of SD Intermin. Delegate Road safety General secretary for sea DG infrastructure Transport and sea DG Civil aviation GC DD GS General affairs Road traffic and safety DG building, planning and nature DG Energy Climate DG risk prevention Regional D. environment Regional D Industry, research environment Regional D. equipement

  10. Director Energy& climate advisors Direction of Energy Dept. of Climate and energy efficiency General affairs Energy markets Security of supply Climate air quality Safety veh.emission Electricity renewables Nuclear industry Climate change Air quality Energy management Heat Carbone market

  11. The long history of the french EE agencyFrom oil savings to environment Energy saving agency (AEE) 1974 Energy management agency (AFME) 1982 Environment and energy management agency (ADEME) 1992

  12. is a public establishment (EPIC) ADEME • Created in 1992 from the merging of 3 previous agencies or bodies (waste management, air quality and energy management) • Under the joint supervision of 2 Ministries : Ecology, Energy, Sustainable Development and Sea, in charge of Green Technologies and Climate Change negotiations (MEEDDM) Research (MESR)

  13. 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

  14. A new charter agreement on objectives structuring relations between ADEME and the StateAction 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

  15. Protecting Air quality by developing monitoring and prevention of polluting emissions Reducing the quantity of household and industrial waste by promoting the prevention of waste production Managing energy use by developing energy- efficient techniques in industry, agriculture, households and tertiary and transport sectors Developing environmental management in companies and local authorities and promoting green products Rehabilitating polluted sites Contaminated orphan sites Encouraging use of renewable energy sources (solar, wind, geothermal, biomass, biofuels, etc.) Reducing noise Research, buildings and transport ADEME : Main areas of activities

  16. ADEME’s aim (expertise and precursor) 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 actions Acquire knowledge By expanding the whole knowledge in terms of technology and innovation (studies, statistics, etc.) • Convince and mobilise Through communication, information, education and training • Advise By developing advisory services (for the French Government, local authorities, companies, households, etc.) • Help in decision-making and implementation of actions Through financing exemplary projects (replicable)

  17. ADEME’s key figures • 930 employees, (600 engineers, 30 economists), 300 for energy efficiency • 29 regional branches • 1 office in Brussels • High researc profile but 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 • 1,1 billion euros 2010 budget+ 2,5 billions euros for research demonstration projects • target agreements (COB) (2007-2009) (2009-2012) • 40 000 agreements per years with ADEME’s partners

  18. General inspection Presidency General Director cabinet State controler Executive Direction programmes Executive Direction strategy, international, research Regions General affairs Climate International affairs Research Consumption waste Biomass Agriculture Etc. cities territories transport Economic forecasting renewables building Entreprises Eco-echnologies Air quality Urban organisation

  19. The ADEME’sBudget for 2010 revenue from tax represents half of the total budget New ! for 2010-2015 (2020) Base 228 M€ Grenelle funds 319 M€ Demonstrator fund 160 M€ Total for action 986 M€ 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€ Total for action 986 M€ Operation budget 87 M€ Global budget 1 073 M€

  20. Who is implementing policies case of building • Tax credit for households for efficient equipment purchasing (25 to 50%) • Implementation : Ministry of environment and energy + ministry of finance • Monitoring idem + ADEME • Reduced VAT for works (5,5%) • Implementaion : Ministry of finance • Zero interest rate loans for buildings refurbishing or new construction • Conception : ADEME + ministry of finance and ministry of environment • Implementation : Ministry of finance and private banks • Monitoring : ADEME and ministry of environment • Direct subsidies for retrofitting • Implementation : ADEME for audits and ANAH for large scheme subsidies, local authorities) • Energy efficiency obligations for energy suppliers to be realized at consumer level and certificates: • Conception: ADEME + ministry of environment+ Professionals • Implementation : Ministry of environment, Utilities • Monitoring : utilities, ADEME, ministry of environment

  21. Who is implementing policies case of building (2/2) • Building codes for new and existing buildings • Implementation : ministry of environment (building) • Diagnostic of energy performance of buildings (mandatory) • Conception : ADEME and ministry of environment (building) • Implementation : ministry and ADEME • Monitoring : ADEME and ministry of environment • Training of building construction professionals • Conception : ADEME • Implementaion : ADEME and professionals • Monitoring : ADEME • Local information centers • Implementaion ADEME and local authorities • Monitoring ADEME • Simplification of procedures for performing thermal renovation works on property held in co-ownership. • Conception : ADEME • Implementation : ADEME , professionals • Monitoring : ADEME

  22. Who is implementing policies case of transport • European agreement on cars efficiency : 120 g CO2/Km for new cars in 2012 Monitoring ADEME, ministry of environment • Car labeling • Bonus-Malus on cars purchasing Conception : ADEME, ministry of environment(transport), ministry of finance Implementation : Ministry of finance, car salers Monitoring : ADEME, ministry of environment (transport) • Car scraping subsidies (function of replacement efficiency) Implementation : Ministry of finance, cars salers, ministry of environment • Motor-fuel taxes Ministry of finance

  23. Issues on governance (1/2) • Strong beleif that governance affects the policy implementation • An energy efficiency agency is only one componant of the governance for energy efficiency • Despites different contexts, 2/3 of countries have an energy efficiency agency or a dedicated department wihin the ministry • E.E. agency is not alone to implement policies including ministries or other agencies (retrofiting) because energy efficiency is part of sectoral policies (transport, building) • It is nessecary to avoid stop and go policies and to secure adequate and sustainable funding (tax revenue rather than yearly stat budget) for the agency • Independance vis-à-vis costumer is key but difficult to manage • The role of an agency is also to create networking and partnerships with other public and private stakeholders

  24. Issues on governance (2/2) • The status (private or public or semi-public) is questionable and can evolve overtime • The agency should be correctly sized, staffed with high educated people and well paid because its requires a specific expertise. • Regional branches could be a key success factor for better policies implementation. However relationships with local or regional agencies can be an issue • Merging with other issues (environment etc;) reunforces the legitimacy of the agency • To avoid confusion between the role of utilities and agencies (media campain, energy versus energy efficiency center etc.) • Agency may monitor the regulations but not implementing them • Monitoring of the policy implementaion could be a role dedicated to the agency

  25. Thank you for your attention For more information: www.worldenergy.org www.ademe.fr www.odyssee-indicators.org www.MURE2.com

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