As environmental issues increasingly dominate public debate, the Energy-Climate Act has become an integral part of corporate strategies. This law aims to reduce greenhouse gas emissions and promote renewable energies, which has an immediate effect on franchise networks. Here, we look at some of the key provisions applicable to franchise networks, as well as the opportunities available to entrepreneurs entering this sector.
The Energy-Climate Act: Main provisions
France recently implemented ambitious greenhouse gas emission reduction and energy transition targets with its 2019 Energy-Climate Law, adopting tougher targets such as reducing greenhouse gas emissions by 30% by 2024 as well as transitioning fossil fuel-based energy systems by 2020. Other provisions include:
Carbon neutrality by 2050: this objective calls for a six-fold reduction in greenhouse gas emissions since 1990 and a 40% reduction in fossil fuel consumption by 2030 compared with 2012.
Renewable energies: the law aims to increase the share of renewable energies in final energy consumption to 42.5% by 2030, while a massive renovation plan to improve the energy performance of homes and business premises will also be implemented.
Impact of the energy-climate law on franchise networks
Energy and climate legislation affects all businesses, including franchise networks. Many aspects of these laws have an immediate effect on franchisors and their franchisees:
Energy performance requirements: franchisees must ensure that their premises comply with current insulation and heating standards. In addition, franchisees must ensure that their products and services comply with the objectives of the French energy-climate law.
Waste reduction: the law encourages companies to adopt environmentally-friendly practices such as recycling or reducing packaging waste. Franchise networks can take advantage of this legal obligation and promote their environmental commitment to customers by adopting sustainable measures of this kind.
Energy and climate legislation presents both challenges and opportunities for franchise networks. By complying with its requirements, entrepreneurs can take advantage of environmental issues to create profitable franchise networks that address them sustainably and effectively. Innovation, training, communication and the quality of services offered will enable entrepreneurs to respond effectively to the expectations of consumers and public authorities in terms of energy transition and climate protection.
