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France announces voluntary adoption of a new law amending the Mining Code to meet Paris Agreement commitments.

By Paul Davies and Michael Green*

Background

After lengthy legislative debates, the amended Mining Code (MC) now provides that, as a matter of principle, the research and exploitation of coal, and of all liquid or gaseous hydrocarbons, shall be gradually phased out and then banned (Art. L.111-6§1). If liquid or gaseous hydrocarbons are “related” to deposits of substances not affected by the ban, then the title holder cannot exploit these either and must leave them untouched (Art. L.111-6§2). One exception to the ban is “mine gases” (i.e., gases located in formerly exploited coal seams for which recovery requires only necessary intervention to maintain mining cavities under low pressure for suctioning such gases) (Art. L.111-5).

To assist with the phase out and ban, the government has introduced measures to help title holders transition to an alternative use. As such, four years prior to the expiration of their permits, affected title holders may also apply to convert their permits to allow the exploitation of other substances or other uses of the sub-soil. In order to qualify for permit conversion, title holders must demonstrate both that: (i) the new substance or new use is “related” to the hydrocarbons present in the deposit; and (ii) the pursuit of the exploitation of such deposit is necessary to secure its profitability (Art. L.111-7).

By Paul Davies and Michael Green

In August 2015, the French government amended the French Energy Transition Law to include provisions rendering “planned obsolescence” a misdemeanour. In the latest wording of the provisions, article L.441-2 of the Consumer Protection Code (Code de la consommation) defines planned obsolescence as “… resorting to techniques whereby the entity responsible for the placement of a product on the market deliberately intends to shorten [that product’s] life span in order to increase its rate of replacement”. Interestingly, this is the French government’s second attempt to define planned obsolescence since introducing the provision two years ago.

Violation of the prohibition on planned obsolescence carries a potential two-year prison sentence and a criminal fine of up to €300,000. As an added deterrent, the law further provides that the courts may increase the fine to up to 5% of the annual turnover of the entity concerned (based on the average of the entity’s turnover in the three years prior to the date of the offence). The courts will therefore have the option of increasing a fine, provided the fine is proportionate to the infringing party’s gain (see Consumer Protection Code, art. L.454-6).

By Paul Davies and Michael Green

France adopted an ambitious energy transition package in August 2015 that sets out various targets designed to achieve the gradual de-carbonisation and increased sustainability of its economy.

The package includes consumption reduction targets, energy production cuts and provisions for a long-term programming scheme for public authorities to manage the country’s energy mix.

The Objective

Consistent with the EU’s energy strategy, France’s objective is to:

  • reduce its energy consumption by 50 percent by 2050 (with reference to 2012 energy consumption levels)
  • achieve an intermediate target of an overall 20 percent reduction by 2030
  • reduce fossil fuels consumption by 30 percent by 2030

In parallel, and perhaps more controversially, France aims to significantly reduce its production of nuclear electricity. France currently sources 75 percent of its electricity from nuclear energy – the highest worldwide – and is targeting a one third reduction of its nuclear energy sourcing by 2025.