France will shut down all coal-fired power stations by 2021, French President Emmanuel Macron said at the World Economic Forum’s Annual Meeting 2018 in Davos. Moreover, he announced that making France a model in the fight against climate change would become a pillar of his economic reforms. Since there were only five coal-fired power plants in operation in France last year, Macron’s decision is largely symbolic.  Nonetheless, Macron sent a clear message that France is determined to lead on climate issues.

Against the backdrop of falling renewable energy costs, air pollution regulations and rising carbon prices the economics of coal power in the EU has been significantly undermined. According to Carbon Tracker, an independent financial think tank based in the UK, 54% of coal power stations are cashflow negative. Macron recognizes fight against climate change as a huge opportunity in terms of competitiveness creating a lot of jobs. Although the EU opened the world’s first carbon trading market, Macron called for the EU to enhance its effort and to create a floor price for CO2 to boost progress.

As regards climate change, Macron said that we were losing the battle and the world needed concrete action and results. This statement is in line with previous steps taken by France such as hosting of the One Planet Summit or ban on all exploration and production of oil and gas within its borders and territories by 2040 approved by France’s Parliament in December 2017.