Use the Lexology Navigator tool to compare the answers in this article with those from other jurisdictions.    

Regulatory framework and policy

Domestic legislation

What is the primary environmental legislation in your jurisdiction?

Most environmental laws and implementation decrees are contained in the French Environmental Code.

International agreements

Is your jurisdiction a signatory to any international environmental agreements/commitments?

France is a signatory to most international environmental treaties and agreements. It has also recently demonstrated leadership in the global effort to protect the environment as reflected by, among other things, the Paris Agreement on Climate Change (December 2015) and the presentation of a proposed Global Pact for the Environment at a UN summit (September 2017).


Which government bodies regulate compliance with environmental legislation and what is the extent of their powers?

Although several government bodies have authority over environmental issues, the main ones are the Regional Directorates for the Environment, Planning and Housing (DREALs, or DRIEE in the Paris area), which act as inspectorates of the facilities classified for environmental protection purposes (ICPEs). DREAL inspectors are allowed to issue notices of violation in case of criminal offences, and also to guide administrative action from the local prefect, including by preparing draft injunction orders in case of non-compliance.


How would you describe current government policy on environmental regulation and how does it compare on an international scale?

In 2016 the Organisation for Economic Cooperation and Development (OECD) published a report reviewing France’s environmental performance over the previous decade. While “commend[ing] France for its role in brokering the historic climate agreement at COP21 and for its 2015 Energy Transition Law, which sets ambitious targets for further reductions in greenhouse gas emissions, improved energy efficiency, growth in renewable energy and diversified electricity generation, the OECD noted that efforts remain to be made in order to reduce air pollution from diesel vehicles and water pollution from pesticides. The OECD also recommended greater transparency, wiser public investments and a simplification of environmental regulations, the development of which has been exponential over the past decade.


Activities subject to permit

Which activities require an environmental permit and how are they classified for such purposes?

Three main types of permit or permitting regime for industrial activities exist in France: authorisation (for most potentially polluting activities), registration or declaration (for less potentially polluting ones). Those activities are designated as ‘ICPEs’ (facilities classified for environmental protection purposes). They are listed in a nomenclature that contains approximately 275 entries or rubrics. Each rubric sets out capacity or volume thresholds and defines the corresponding permitting regime. When an industrial project includes several ICPE activities that are individually subject to different regimes, the application shall be filed for the most stringent type of permit. ICPE permits are ‘integrated permits’ as they cover all potential sources of nuisance or impact on all environmental media at a given facility. As of 2014, approximately 450,000 facilities were subject to a declaration, 12,000 to a registration and 32,000 to an authorisation.

A second water nomenclature (also known as the ‘IOTA nomenclature’) is applicable to non-ICPE activities and equipment that require extraction of groundwater or superficial water, modification of the level or drainage of such water, or generate water discharges (even non-polluting ones). This nomenclature also provides for two permitting regimes depending on predefined thresholds – namely, declaration and authorisation.

For simplification purposes, a single procedure and permit called the ‘environmental authorisation’ was introduced in March 2017 to apply to all new ICPEs or IOTAs above authorisation thresholds.

Issuing authority

Which authority issues permits?

The local prefect is the authority issuing permits, with the support of environmental services – that is, mainly the Regional Directorates for the Environment, Planning and Housing for ICPE applications, and water services for IOTA applications.


What are the procedural and documentary requirements to obtain a permit?

Operators of ICPEs that are subject to the declaration regime should submit a description of the operating entity or person, of the contemplated activities and corresponding nomenclature rubrics; and maps of buildings and on-site networks.

Since January 2016, declarations can be made online. The prefect sends a receipt, along with the generic requirements set at national level for the relevant rubrics.

Operators of ICPEs that are subject to the registration regime should add detailed descriptions of the contemplated effects on – among other things – the environment, the neighbourhood, and the operator’s technical and financial capabilities The application is made available to the public and is examined by the prefect’s services. The permit consists of a registration order with ad hoc technical requirements (arrêté préfectoral), theoretically issued within five months of submission.

Operators of ICPEs that are subject to the authorisation regime, as reformed on March 1 2017, first need to apply for a preliminary project certificate so that governmental services can clarify their expectations or inform the operator of any major obstacle. The new environmental authorisation aims at simplifying, under a single permit, various authorisations provided for under the Environmental Code (for ICPEs or IOTAs, natural reserves, protected species and habitats, genetically modified organisms…), as well as under the Forestry Code (for clearing), the Energy Code (for electricity production), the Code of Cultural Heritage, among others. Accordingly, the application file needs to be very detailed and will be subject to both a review by various prefectural services and a public hearing (enquête publique). The permit consists of a prefectural order with ad hoc technical requirements, expected to be issued within nine months of submission.


Do any permit fees apply?

There are no permit fees per se. However, a general tax on polluting activities is levied upon delivery of an environmental authorisation (under €3,000 for 2017, the fee may be cancelled in 2018).

Validity period and renewal

What is the validity period for permits and how can they be renewed?

The principle is that permits have an unlimited validity. Exceptions include:

  • facilities that are expected to operate for less than a year (eg, pilot schemes) – the permits are issued for six months, renewable once;
  • projects involving an innovative process, or affecting neighbouring uses – duration is proposed by the operator, renewal should follow the same procedure as the initial application;
  • quarries, waste landfills and carbon dioxide geological storage – duration and renewal are subject to specific regulations applicable to those activities; and
  • facilities that are subject to an environmental authorisation since March 1 2017 and imply an increasing use of soil surface of subsurface – prolongation or renewal must be applied for at least two months before expiry of the initial authorisation.


Can permits be transferred? If so, what procedure applies?

For ICPEs that are subject to declaration or registration, the new operator must notify the prefect within one month of effective transfer.

For ICPEs that are subject to the new environmental authorisation since March 1 2017, the new operator must notify the prefect within three months of effective transfer. However, a number of facilities are required to secure financial guarantees to cover any possible major accidents or emergency clean-ups (eg, waste landfills, quarries, ‘Seveso High’ chemical plants, listed activities subject to authorisation or registration…). For those facilities, a transfer of permit is subject to prior approval from the prefect, based on evidence that the new operator has secured its own financial guarantees.


Are permit decisions subject to appeal? If so, what procedure applies?

ICPE permits can be challenged before the administrative courts:

  • by applicants/operators within two months of receipt of the signed permit; or
  • by any interested third party within four months of publication or public posting of the permit.

An informal appeal to a higher administrative authority (recours gracieux or recours hiérarchique) can also be made within two months, in which case the above periods for action before the administrative courts are extended by two further months.   


What are the consequences of violating permit rules and decisions?

The violation of ICPE permit requirements (or the operation of an ICPE without the required type of permit) may trigger both criminal and/or administrative sanctions.

As an example, non-compliance with a permit requirement is punishable by a €1,500 fine and an administrative injunction (mise en demeure) to comply within a set timeframe. Persistent non-compliance is punishable by up to two years in prison and/or a €100,000 fine, and entitles the prefect to:

  • order the payment of an amount corresponding to the cost of corrective measures;
  • have those measures carried out at the operator’s cost;
  • suspend operation until measures are carried out; and
  • impose an administrative fine of €15,000 and a daily penalty of €1,500.

Environmental impact assessments

Projects subject to assessment

What projects require a preliminary environmental impact assessment?

Important amendments to what used to be called ‘impact studies’ (now referred to as ‘environmental assessments’) entered into force in early 2017. Under Article R.122-2 of the Environmental Code, some facilities classified for environmental protection purposes (ICPEs) are systematically subject to such environmental assessments; others are subject to these assessments on a case-by-case basis (depending on the categories of project and/or of ICPE, their nature, size or location). This will apply mostly to ICPEs that are subject to authorisation (they never apply to those that are subject to declaration and rarely to those that are subject to registration).

Scope of assessment

What environmental factors and risks fall within the scope of the impact assessment report?

The environmental assessment shall present all items listed under Article R.122-55, II of the Environmental Code (derived from Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the environment) including, among other things, descriptions of:

  • the project;
  • the ‘reference scenario’ (the initial environmental situation);
  • the elements that may be affected by the project;
  • the main environmental impacts of the project, both direct and indirect, including in case of major accidents or disasters;
  • the main alternatives and an indication of the main reasons for the choice of the project, taking into account its effects on the environment and human health;
  • the avoidance, reduction and, if possible, compensation measures, and – ideally – the contemplated monitoring of such measures; and
  • forecasting methods or other reliable data used in order to identify and assess the main environmental effects, among other things.

The environmental assessment does not include other studies that may also be potentially required, depending on the project, such as hazard studies, Natura 2000 impact studies, water studies or renewable energy feasibility study.  


Who conducts assessments?

The environmental assessment is prepared by the applicant and specifically forwarded by the prefect to the relevant environmental authority, which is selected according to criteria set out in Article R.122-6 of the Environmental Code. The relevant authority will be:

  • the ministry in charge of the environment;
  • a specific section of a specific environmental council;
  • the regional environmental authority; or
  • the regional prefect.

The environmental authority’s opinion should be issued within a month, but is neither conclusive (it is not a go/no-go opinion) nor binding.


Are the results of impact assessments publicly available?

The whole application for an environmental authorisation, including the environmental assessment, goes through a public hearing. From January 1 2018, applicants will need to provide a digital version of the environmental assessment, as well as all of the files containing the raw data used. This should facilitate inclusion in the national database of environmental assessments that has existed since 2007.


Can the results of an impact assessment be contested? If so, what procedure applies?

An administrative court will suspend an environmental authorisation upon request by a third party when such request is based on the absence of an environmental assessment. Case law on impact studies (the predecessors to environmental assessments) used to consider that significant deficiencies in such studies amounted to an absence of such studies.

Soil pollution


What regime governs liability for soil pollution (including the allocation, transfer and limitation of liability)?

Reflecting the developments of case law, the recently amended Article L.556-3 of the Environmental Code clarifies the hierarchy of liable parties in case of soil pollution. The primary liable party is the last operator of the facility classified for environmental protection purposes (ICPE) that generated such pollution or, if soil pollution results from non-ICPE activities, the liable party is the waste producer that contributed to the pollution or the waste holder whose fault contributed to such pollution. Alternatively, in the absence of any such liable party, the real estate owner of the contaminated land can be held liable, but only if it evidenced that it was negligent or was not unrelated to such pollution.

Due diligence

What environmental due diligence measures are recommended before concluding land transactions?

Basic recommended measures consist of checking publicly available information from various online databases, in particular BASOL (listing approximately 6,500 sites identified as “contaminated or potentially contaminated sites and soils requiring preventive or remedial action”) and BASIAS (listing approximately 300,000 sites identified as being or having been occupied for industrial purposes). Local prefects are also expected to collect all existing information and delineate soil information sectors by the end of 2018.

If the seller’s information and/or BASOL or BASIAS data suggest that a potential source of soil (or groundwater) contamination was operated in the past at the site itself or even in close proximity, it is highly recommended to obtain a report on soil and groundwater condition taking into account the French national methodology on the management of contaminated land.. Any consultant used should be fully conversant with the French national methodology on the management of contaminated land, especially since such methodology, initiated in 1999 and substantially reformed in 2007, was further amended in April 2017.


What remediation and clean-up measures are typically applied and how can remediation costs be recovered?

The French national methodology on the management of contaminated land was, and remains after its update in April 2017, a risk-based approach: there are no systematic remediation thresholds, but rather an iterative approach designed to assess potential exposure based on the reality of land uses. Remediation is designed to ensure that such uses can be safely implemented, and specific post-remediation use restrictions or easements are provided for, so that future occupant or redevelopers are aware of the land’s history and remediation. The updated methodology focuses on preventing contamination from current activities and updated technical tools – for instance, on off-site impact assessments, on-site ‘hot spots’, reuse of excavated soil, etc.

When contamination is discovered, environmental authorities will turn to the liable party as identified according to the principles described above. The authorities will disregard any private contracts under which the liable party has transferred (or reassigned) the corresponding responsibilities and/or costs. The terms and conditions of a private law contract and/or the possible recovery of remediation costs may be discussed before civil courts only.

Since 2015, however, a third-party applicant can voluntarily step into the shoes of the last operator, carry out the remediation and officially become the new liable party vis-à-vis the authorities. While the procedure had long been waited for, few have taken advantage of it so far.

Air pollution


How are air emissions regulated? What air quality standards and emission limits apply?

Air discharges from industrial activities are generally regulated by the rules and permits applying to facilities classified for environmental protection purposes (ICPEs). Emission limits may be set at national level for specific activities (eg, waste incineration, surface treatment…) and depending on their size/regime, but site permits may set out different limit values.


What are the consequences of non-compliance with air emissions regulations?

Non-compliance with ICPE rules or permits can lead to criminal and/or administrative sanctions.

For example, non-compliance with a permit requirement is punishable by a €1,500 fine and may attract an administrative injunction (mise en demeure) to comply within a set timeframe. Persistent non-compliance is punishable by up to two years in prison and/or a €100,000 fine, and entitles the prefect to:

  • request the payment of an amount corresponding to the cost of corrective measures;
  • have those measures carried out at the operator’s cost;
  • suspend operation until measures are carried out; and
  • impose an administrative fine of €15,000 and a daily penalty of €1,500.

Water pollution


What rules govern the discharge of wastewater and the protection of water resources?

Wastewater discharges from industrial activities are generally regulated by the rules applying to facilities classified for environmental protection purposes (ICPEs). In addition, non-ICPE activities and equipment that require extraction of groundwater or superficial water, or modification of the level or drainage of such water, or generate water discharges (even non-polluting ones), fall under the water nomenclature known as IOTA. As of March 1 2017, for the purpose of simplification, a single procedure and permit (called the ‘environmental authorisation’) applies to all new ICPEs or IOTAs that are above authorisation thresholds.

The protection of water resources is taken into account in those rules and permits. Groundwater abstraction wells for drinking purposes are also subject to specific quality standards, additional protection areas, and reinforced monitoring programmes derived, among others, from Directive 2006/118/EC on the protection of groundwater against pollution and deterioration.


What are the consequences of non-compliance with water pollution regulations?

In addition to administrative and/or criminal sanctions that are applicable to any ICPE or IOTA permit holder in case of non-compliance with water regulations, the Environmental Code includes various provisions covering water pollution from various sources. For example, the direct or indirect release of any substance, the action or reaction of which has damaging effects on the flora or fauna (Article L.216-6 of the Environmental Code) or on fish species or their environment (Article L.432-2) is punishable by up to two years’ imprisonment and fines up to €75,000 or €18,000, respectively. Similarly, the discharge of any substance or good in public rivers or canals is punishable by a fine that can range from €150 to €12,000 (Article L.2132-7 of the General Code of Public Property).

The liability of the polluter can also be challenged before civil courts, based on tort, neighbourhood disturbance (trouble anormal de voisinage), or custodial possession (garde de la chose).

Waste and hazardous substances


How is ‘waste’ defined in your jurisdiction?

Under Article L.541-1-1 of the Environmental Code, which implements the Waste Directive (2008/98/EC), ‘waste’ means “any substance or object, or more generally any movable good, which the holder discards or intends or is required to discard”.

Waste handling

What rules and procedures govern the handling of waste, with particular respect to:

(a) Storage?

Long-term storage (as opposed to short-term storage for transit and sorting purposes) is authorised only for ‘final waste’ (déchets ultimes) that can no longer be recycled or treated under the present technical and economic conditions. Long-term storage is thus considered a form of disposal. Rules depend on the category of waste: hazardous, non-hazardous or ‘inert’.

(b) Transport?

Waste collectors and transporters of 0.5 tonne of non-hazardous waste or of 0.1 tonne of hazardous waste must declare their activities with the local prefect. Additionally, for hazardous waste, transport is subject to the European Agreement concerning the International Carriage of Dangerous Goods by Road and its national implementation tools. Collectors and transporters of hazardous waste should also fill in the waste manifest that they receive from the waste producer, as well as waste registries.

(c) Disposal?

‘Disposal’ means “any operation which is not recovery even where the operation has as a secondary consequence the reclamation of substances, materials or products or energy”. It is the least favoured operation in the hierarchy of waste management options derived from the Waste Directive, and disposal units, such as incineration and co-incineration, are very strictly regulated.

(d) Recycling/reuse?

‘Recycling’ and ‘reuse’ each have specific definitions, as well as preparation for reuse and recovery. The Waste Directive also introduced into French Law the notions of by-products and end-of-waste. Recycling and reuse opportunities should be reinforced as part of the Circular Economy Package, including via amendments to the Waste Directive.


What is the extent of a waste producer’s liability after transferral of waste (eg, to a waste disposal agent)?

Waste liability usually rests with the waste producer or ‘holder’ (although a debate exists as to the criteria to define the latter), which is responsible for the environmentally sound management of its waste until final treatment (including transport, recovery or disposal), regardless of physical and contractual transfers to professional agents (at least from the authorities’ perspective).

However, waste liability now tends to shift to the manufacturer of the good that will ultimately generate or be turned into a waste, under various ‘extended producer responsibility’ regimes. France champions these regimes, which may be regulated at EU level (eg, packaging, waste electrical and electronic equipment, end-of-life vehicles) or at national level (eg, tyres, textile, furniture), or may be set up on a voluntary basis (eg, agricultural supplies, cartridges).

Waste recovery

Are waste producers bound by any waste recovery obligations?

Under the Waste Directive, EU member states are expected to increase the preparation for reuse and recycling of at least paper, metal, plastic and glass from households to a minimum of 50% of overall weight, and that of non-hazardous construction and demolition waste to a minimum of 70% of overall weight. Those objectives had been taken into account in French waste regulations. The Circular Economy Package published at EU level in December 2015 anticipates a qualitative and quantitative reinforcement of recovery objectives. 

Waste disposal agents

How are the business activities of waste disposal agents/landfill operators regulated?

Waste disposal sites and operators are subject to rules and permitting for facilities classified for environmental protection purposes (ICPE). The permitting regime will mostly depend on the nature, hazardousness and volume of waste and operations. Additionally, some specific categories of waste (eg, oils, polychlorinated biphenyls/polychlorinated terphenyls, tyres) can be handled only by disposal agents with an additional ad hoc licensing.

Hazardous substances

What special rules, regulations and safeguards apply to the handling and disposal of hazardous materials?

Transport of hazardous waste is subject to the European Agreement concerning the International Carriage of Dangerous Goods by Road and its national implementation tools. Collectors and transporters of hazardous waste should also fill in the waste manifest that they receive from the waste producer, as well as their own waste registry. Hazardous waste treatment operators may also be subject to additional rules if their site also qualifies as a ‘Seveso’ site (given the total volume of hazardous substances potentially present at any one time in the facility) and/or as an IED-site under Directive 2010/75/EU on industrial emissions.

Chemical and product regulation


What environmental regulations and procedures apply to the production, transportation and sale of chemicals and other products?

The EU Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation (1907/2006) has governed the production of chemicals since June 2007. Additionally, Regulation 1272/2008 on the classification, labelling and packaging of chemicals entered into force in France in December 2010 for substances, and in June 2015 for mixtures. Transport of chemicals is subject to the European Agreements concerning the International Carriage of Dangerous Goods by Road, by Rail or by Inland Waterways, and their national implementation tools. Criminal and administrative sanctions are cumulatively applicable, especially for major violations.


Types of liability

What types of liability can arise for environmental damage (eg, administrative, civil, criminal)?

Liability of polluters for damage to the environment at large is usually challenged before civil courts – for instance, based on tort, custodial possession (garde de la chose) or neighbourhood disturbance (trouble anormal de voisinage).

Directive 2004/35/EC on environmental liability was also transposed into the French Civil Code to provide for indemnification of damage to protected species and habitats or to water with significant adverse effects, or to land with significant risk of adverse effects on human health. Potentially eligible generating events must have occurred before April 30 2007. The statute of limitations is 30 years from the generating event (and not the actual observation of the damage).

After many years of legal debate, a standalone ecological damage regime (préjudice écologique) was also introduced into the Civil Code, for events having occurred before October 1 2016 and having had a substantial effect on ecosystems, their functions or the collective human benefit derived from the environment. Governmental entities and certified environmental groups may request compensation in kind or, where this is not possible, indemnification to be allotted to environmental remediation measures. The statute of limitations is 10 years from the date on which the plaintiff was or should have been aware of the damage. Indemnification of material and moral losses resulting from environmental damage may still be claimed for on civil grounds.

In addition to fines or even prison sentences, the criminal courts may also order that the polluting activity stop, and that remediation be either imposed (including with daily penalties) or executed at the operator’s cost. A victim can also identify itself as a civil party to the criminal proceedings and thus seek damages.

Comparatively, the administrative courts seem overall reluctant to impose indemnification for environmental damage.

Directors’ and officers’ liability

Can directors and officers be held personally liable for company environmental offences? If so, can liability be limited through insurance coverage and/or contractual indemnities?

Corporate entities can be held liable and receive fines up to five times those applicable to individuals. Alternatively or additionally, directors and officers can be held personally liable for company environmental offences. Liability can be limited through insurance coverage and/or contractual indemnities as provided for by the company.

Liability for authorised activity

Can environmental liability arise even in the course of authorised activities (eg, operations subject to environmental permits)?

Yes. The fact that the polluting activity may be duly permitted is not a valid defence. In essence, if an activity is a source of environmental liability, it is also non-compliant.


What defences are available to environmental offenders?

Available defences include the absence of risk for human health or the environment, adequate existing emergency procedures and prevention measures, rapidly implemented remedial measures and long-term prevention measures.

Liability in share sale/asset purchase

What rules govern the transfer of environmental liability in share sales and asset purchases?

Private law agreements for the transfer of environmental liabilities that are set out in the environmental code may be effective between their signatories, but will be ineffective vis-à-vis the authorities. Environmental authorities will turn to the operator/permit holder as the liable party for compliance and remediation issues. The parties will thus need to tailor their agreements, bearing in mind who the officially exposed liable party will be: the operating/permit holding entity will generally not change in a share sales, whereas it may in an asset purchase.

What environmental due diligence measures are recommended before concluding share sales/asset purchases?

It is recommended to conduct:

  • a compliance audit, including vis-à-vis regulations that are yet to be implemented; and
  • soil and groundwater investigations taking into account the French national methodology on the management of contaminated land. The consultant chosen should be fully conversant with the French national methodology on the management of contaminated land, especially since such methodology, initiated in 1999 and substantially reformed in 2007, was further updated in April 2017.

Lender liability

Can lenders be held liable for environmental offences?

Not in this sole capacity: environmental offences are found by environmental authorities, which will regard the operator as a liable offender.

Reporting and disclosure obligations

Required reporting

Under what circumstances must environmental damage be reported to the authorities?

Any incident or accident occurring at a facility classified for environmental protection purposes (ICPE) must be reported to the environmental authorities as soon as possible. A report must be further issued describing:

  • the circumstances and causes of the event;
  • its effects on human health and the environment; and
  • the measures implemented and contemplated to avoid a similar event in the future, and to prevent its medium or long-term effects.


Is information on environmental damage/compliance available in a public register?

The CEDRIC database on ICPEs and some local prefectures publish injunctions against industrial operators; they are, however, not always fully up to date. The ARIA database also provides feedback on technological accidents over the previous year.


Are regular environmental audits required?

Monitoring duties have been reinforced over the years for ICPEs and generally include the provision of regular reports on discharge levels and controls. Operators are also expected to report their discharge and waste volumes to national registries on a yearly basis. Regarding soil and groundwater condition, a baseline report (rapport de base) must be carried out at plants designated under the Industrial Emissions Directive (2010/75/EU).


What environmental disclosures are required in sales transactions?

Extensive environmental disclosures are required in any sales transaction, as failure to do so may render environmental representations, as well as warranties and related liability transfers, ineffective.

Specifically in any real estate sale, the seller has an extensive duty to inform its buyer of present and past industrial activities, and of related risks, soil, groundwater and waste issues. If the seller fails to do so, the buyer may claim for rescission of the sale, or reimbursement of part of the price of sale, or remediation at the seller’s cost (if not disproportionate to the price of sale).

The seller also has a duty to provide the buyer with various studies regarding the environmental condition of the buildings (with respect to asbestos, lead, termites, fungus, etc).



What types of environmental insurance are available and what do they cover?

Liability insurance for industrial operators generally cover only damage to third parties and to the environment resulting from accidents.

Is environmental insurance mandatory and/or commonly purchased?

Most insurance companies offer other types of tailored cover for prevention and remedial measures, environmental investigation and litigation costs, post-remediation discoveries, etc. However, these cover policies are not mandatory and although this market has developed over the past decade, those specific insurance covers are not commonly purchased.



What environmental taxes are levied in your jurisdiction?

Environmental taxes are mainly based on energy consumption (with a specific focus on fossil fuels via the tax on the consumption of energy), on transport (with 15 regimes aiming at improving the energy and environmental performance of vehicles and favouring carbon-free transport) and on polluting activities (with a specific focus on waste via the general tax on polluting activities). Water agencies also levy royalties on water extraction and activities that may impact on water resources, the revenues of which are used to support water protection initiatives from municipalities, industrial and agricultural operators.

Climate change issues

Emissions, renewables and efficiency

What regulations, targets and/or incentive schemes are in place to:

(a) Reduce greenhouse gas emissions?

France launched a Climate Plan for 2004-2012, which was effectively reinforced in 2009 after several laws were enacted to implement incentive taxes for energy savings, extend punitive taxes for certain categories of polluting activity and vehicle or, in the construction sector, encourage energy-efficient buildings and renovations. A new Climate Plan was launched in July 2017, among other things, to transpose the Paris Agreement into national law to make it effectively irreversible, and reinforce incentive taxes and premiums.

(b) Promote renewable energy/energy efficiency?

The Energy Transition Law of August 2015 sets out ambitious targets for the increase of renewable energy sources by 2030. Financial incentives include an additional premium paid to the renewable energy producer (as compensation for the difference between its actual income and a reference market price). Regulatory incentives include an increased authorisation threshold (from 12 to 50 megawatts), clearer litigation rules for offshore wind farms, simplified bids, etc.

For the promotion of energy efficiency, the Energy Transition Law also introduced various incentive mechanisms for the renovation of existing buildings, including tax credits, reduced value-added tax, energy-saving certificates and premiums, eco-loan, etc.

Biodiversity conservation


What regulations are in place to protect biodiversity and natural areas?

Regulations for the protection of biodiversity and natural areas are mostly initiated and coordinated at EU level. France had also launched a first Biodiversity Strategy in 2004, which, however, did not reach the objective set out in the 1992 Convention on Biological Diversity to reduce the rate of biodiversity loss significantly by 2010. A Law on the Recovery of Biodiversity of Nature and Landscapes was finally passed in August 2016 (previous laws on the protection of nature and of landscapes dated back to, respectively, 1976 and 1993). From a legal perspective, the new statute provides a legal framework for the case law-derived indemnification of ecological damages (prejudice écologique), and introduces the ‘non-regression’ principle (according to which environmental protection shall only improve) and the ‘ecological solidarity’ principle (in order to reinforce the interactions between biodiversity preservation and human activities in local territories).