In April 2025, France passed a new law aimed at reducing carbon emissions by transitioning coal-fired power plants to cleaner energy sources. The goal is to encourage the country's energy producers to transition to lower emission production.

 

What Does the Law Do?

The law targets existing coal, peat, and oil shale power plants that emit more than 550 grams of CO2 per kilowatt-hour. If these plants are converted to lower-emission alternatives, they will be officially classified as new power installations, allowing them to receive fresh regulatory approvals.

To encourage this transition, converted plants will be automatically granted operating authorization, simplifying the approval process. However, they will still need environmental permits, ensuring compliance with sustainability regulations.

By 31 December  2026, state-owned companies (i.e. companies where the French government holds over 50% ownership) must present plans to convert their coal power plants to greener alternatives. The law comes into effect once the 2025 budget law sets an official implementation date.

This new law marks France's  ambition to reduce its dependence on coal while pushing for a cleaner and more sustainable energy sector.

 

With appreciation to Amineh Farasatmand for her contribution in preparing this blog.

Related categories

Key contacts

Dr Silke Goldberg photo

Dr Silke Goldberg

Partner, London and Israel Group

Mika Morissette photo

Mika Morissette

Senior Associate, London

Dr Silke Goldberg Mika Morissette