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Environment: “Energy label”: French government monitors overconsumption

April 2006

As of 10 May, cars in France will sport a new label. Introduced by Nelly Olin, Minister of Ecology and Sustainable Development, this small sticker will provide potential car buyers with specific information on the energy consumption of their future vehicle: a simple and effective solution for reducing greenhouse gas emissions.

In France, an intentionally self-mocking popular saying states: “we may not have oil, but at least we have ideas”. The proof: a new measure adopted by the French government that requires car manufacturers to place an “energy label” on their products in order to help French people save on fuels. With an A to G rating scale, the label is designed to help people buying new automobiles to curb their future oil consumption. The label clearly indicates the environmental impact of new cars sold in France as of 10 May 2006 by quantifying CO2 emissions, the main culprit responsible for the greenhouse effect and global warming. In a recent survey published in French daily Ouest France, 42% of those interviewed said they would be “willing to spend more money in order to buy a cleaner, more fuel-efficient car.

Similar to the rating system already in place for household goods, this new “energy label” is but one of France’s many initiatives aimed at reducing greenhouse gas emissions. It represents one of the key measures rolled out to ensure that the 2004-2012 Climate Plan, presented on 22 July 2004 by the French government, will allow France to meet its commitments as provided for in the Kyoto Protocol. In other words, by encouraging French people to buy non-polluting cars, the new label is expected, between 2008-2012, to play an active role in bringing greenhouse gas emissions back to the same level as in 1990.

Additionally, as part of a global effort to reduce energy consumption, the “energy label” will become mandatory for all housing units as of 1 July 2006, in the framework of the energy performance diagnosis required when housing units are sold (and for rentals as of 1 July 2007). The label will be gradually extended to encompass all energy-consuming products.

A series of supplementary measures is associated with this new “energy label”. To encourage French people to pollute less, the government will offer as of 2006 a “tax cut” in the form of a €2,000 tax credit for anybody purchasing a clean vehicle. The effort to promote less thirsty cars has been paired with a campaign endorsing alternative fuels. It is also bolstered by an important 100-million-euro R&D programme for developing a fuel-efficient vehicle, notably, a family car that emits less than 100 grams of CO2 per km. In addition to this broad range of incentive measures, Dominique de Villepin’s administration has announced the creation of a surcharge for the purchase of highly polluting vehicles.

In parallel to this, France’s biofuel sector is continuing its industrialisation. At the last Salon de l’Agriculture, France’s largest agricultural trade show in Paris, Prime Minister Dominique de Villepin announced the construction of ten new biodiesel (+7) and bioethanol (+3) plants aimed at boosting production by 2008. The Minister also assured that new manufacturing approvals would be granted by the end of 2006 authorising the production of 950,000 tonnes of biodiesel and 150,000 tonnes of ethanol. This should help meet the targets set in 2005 by the French government for incorporating bio-fuels in petrol and diesel tanks: 5.75% by 2008, 7% by 2010 and 10% by 2015. Manufacturers such as Cristanol, Tereos, Abengoa and Prolea are relying on the colza industry, but also on biofuels derived from beetroot, wheat, sunflower seeds and corn - vegetable crops that already make up France’s national agricultural production. In fact, the manufacturers are planning on investing 1 billion euros in the construction of 10 new plants.

Such measures, which promote environmental conservation, have been recognized by the OECD. The Organisation for Economic Co-operation and Development has highlighted the positive aspects of France’s environmental performance from 1996 to 2005. Additional leads are currently being explored by French manufacturers. As such, in February 2006, PSA Peugeot Citroën, the world’s leading diesel engine maker, unveiled the first ever hybrid diesel engine on two production cars. It’s a sure bet that when these vehicles go to market in 2010, they will get an “A” on their energy labels!

Bruno GIMMIG

Last updated: 20.06.2006