| Themes | Notes | Content |
|---|---|---|
| ThemesRegulatory mechanisms related to greenhouse gas emission rights, Energy Savings Certificates, Renewable Energy Certificates – see note 20.1 | Notes Note 5.5.4 “Other items” Note 10.2 “Other intangible assets” Note 17.2 “Other provisions” |
Content Climate and environmental issues are addressed in compliance with the regulatory systems existing in different countries for greenhouse gas emission rights, renewable energy certificates and energy savings certificates. These systems have an impact on the Group’s financial statements at several levels: the income statement and the balance sheet. |
| Themes Nuclear provisions and provisions for contingencies and losses incorporating environmental risks – see note 20.2.1 |
Notes Note 15 “Provisions related to nuclear generation and dedicated assets” Note 17 “Other provisions and contingent liabilities” |
Content These are provisions relating to:
|
| Themes Valuation of assets – see note 20.2.2 |
Notes Note 10.8 “Impairment/reversals” |
Content Climate issues are addressed in impairment tests, notably though the long-term scenarios applied for electricity prices in line with the trajectories of European decarbonisation objectives |
| Themes Sustainable finance – see note 20.3 |
Notes Note 18.3.2 “Loans and other financial liabilities”Note 14.4 “Perpetual subordinated bonds” Note 18.4 “Unused credit lines” |
Content The Group has made several finance issues indexed on environmental indicators or to advance CSR projects: Green Bonds, Social bonds and credit lines indexed on ESG criteria |
| ThemesExpenses for protection of the environment and the climate – see notes 20.4 and 20.5 | Notes Note 10.2 “Other intangible assets” |
Content The Group devotes a significant portion of its research and development budget to decarbonisation and the energy system transition, and undertakes other expenses for the environment or to adapt its installations to changes in the climate. The accounting policies applicable to research and development expenses are described in note 10.2. |
The European Union’s Emissions Trading System (SEQE-UE or EU ETS) exists to fight climate change and reduce greenhouse gas emissions.
This system, which applies in all EU countries, sets an annual cap on emissions. Businesses (including EDF) receive or buy emission quotas, then the following year surrender to the European Commission a number of greenhouse gas emission rights corresponding to their Scope 1 emissions for the year elapsed, such as direct greenhouse gas emissions from production of the goods sold (e.g. electricity, heat, steel, paper, etc.). Fines are payable if there is a shortfall (€100 per tonne of CO2 not covered by quotas, and an obligation to cover these amounts by quota the following year).
The cap is being progressively reduced in order to bring down the total emissions in Europe.
The legislative framework of the EU-ETS for the fourth trading period (2021-2030) has been tightened up to achieve the emission reduction targets set in the 2030 Climate and Energy framework, and the EU’s contribution to the Paris Climate
Agreement adopted in 2015 (which set a general target of a 40% cut in emissions compared to 1990 levels for the whole EU) (1). One key step was accelerating annual quota reductions to 43 million tonnes per year (2.2% below the allocations for 2010).
The European Commission also presented a package of proposals on July 2021 entitled “Fit for 55”, intended to bring the European Union closer to the augmented target of cutting CO2 emissions by at least 55% (compared to 1990 levels) by 2030.
The European “trilogue negotiation”, finalised in December 2022, raised the initial targets set by the European Commission in its legislative proposals in July 2021. The quotas for the sectors concerned by the ETS will be reduced by 62% (compared to 2005) by 2030.
In the EDF group, the entities concerned by application of these European regulations are EDF, Edison, Dalkia, PEI and Luminus.
The volume of emissions at 31 December 2022 stood at 18 million tonnes (17 million tonnes for 2021).
Actual greenhouse gas emissions amounted to €799 million at 31 December 2022 (€380 million at 31 December 2021) and are included in provisions.
In 2022, the Group surrendered 17 million tonnes in respect of emissions generated in 2021 under the EU ETS (in 2021 it surrendered 16 million tonnes in respect of emissions generated in 2020).
(1) The current EU ETS allocations trajectory does not yet include changes to be made in application of the Fit for 55 package.
