PARIS: The parliament of France has approved a law banning all exploration and production of oil and natural gas by 2040 within the country and its overseas territories. Under the law all existing drilling permits will not be renewed and no new exploration licenses will be granted.
France’s Environment Minister Nicolas Hulot said that the law shows “current generations can take care of future generations.”
The French government claims the ban is a world first. However, it is largely symbolic since oil and gas produced in France accounts for just 1 percent of its consumption. France will continue to import and refine oil. “The law will halt the exploitation of hydrocarbons in our territory; existing concessions cannot be renewed beyond 2040,” the draft bill states.
The ban has been implemented in the light of a larger plan to wean the French economy from fossil fuels and to fulfill France’s commitments under the Paris climate agreement to curb global warming. The law may affect companies such as France’s Total, which has permits to explore in overseas territories such as offshore Guyane Maritime in French Guiana.
Apart from this, France plans to stop generating electricity from coal by 2022 and reduce to 50 percent from more than 75 percent the share of nuclear in its power generation, favoring increased renewable energy.
The Hydrocarbon production in mainland France takes place mostly in the Paris Basin and Aquitaine Basin, where Vermilion Energy operates several permits. Lundin Petroleum, through its Canada-based spin-off International Petroleum Corp, and privately owned Geopetrol are the other producers in France. The companies were not immediately available to comment.