French Observatory of Access Conditions to the Ecological Transition, 2024 Edition

Report only available in French 

The ecological transition can only happen if all households have access to solutions – public transport, electric vehicles, home insulation, heating upgrades, etc. The issue of the access to transition solutions is therefore crucial for climate policies. Special attention should be paid to low- and middle-income households, as the necessary investments may not be sustainable for them. 

Where do we stand today in France? Do all households have access to the ecological transition? What about low- and middle-income households?  

Following initial research in 2023, our objective is to track the evolution of access conditions to the transition for French households through an annual observatory, the first edition of which is presented here. 

The 2024 Observatory focuses on deep energy retrofits and low-carbon mobility and assesses the necessary – though not sufficient – conditions for households, particularly low- and middle-income households, to engage in the transition. 

For each theme – retrofitting and low-carbon mobility – the first section evaluates the economic capacity of households to make the necessary investments for the transition, in deep energy retrofitting and electric vehicles (EVs). This section aims to answer the following questions: What are the costs of deep retrofits or electromobility investments for households? How much aid can they receive? What is the out-of-pocket cost for households? Do they have solutions to finance it? How does their housing and mobility budget change after investment? 

Beyond the capacity of households to make investments, other conditions are necessary to give them access to the transition: the availability of infrastructures – heating networks, bike paths, public transport, EV charging points – as well as qualified jobs matching needs – retrofit artisans, retrofit advisors – and decisions that do not depend solely on the household, such as in a condominium or in a rental property. These conditions are assessed in the second part for each theme. 

Five main messages emerge from these analyses: 

1. Access to the ecological transition is improving for low- and middle-income households.  

First, increased public support for low- and middle-income households has reduced the out-of-pocket cost of investments for the transition. Deep energy retrofits aid increased significantly between 2023 and 2024 (by more than 60% for all households in individual houses and over 35% for apartments). This development is in line with the trend from the past 15 years, with substantial aid increases for deep energy retrofits of individual houses, especially benefiting low- and middle–income households. This income-indexed support is less pronounced for apartments, but the introduction of a base aid for all households has facilitated, to some extent, decision-making in favor of retrofits in condominiums. For electromobility, the “social leasing” (a State-aided car leasing program that allows low- and lower-middle-income households to rent an EV for a relatively low rent) has lowered the investment barrier in electric vehicles for households that benefitted from this program. Over the past fifteen years, mobility aids have also become increasingly targeted at low- and middle-income households. For both retrofitting and mobility, low- and middle-income households represent a significant share of aid beneficiaries, although data gaps prevent a comprehensive assessment, and this share has slightly decreased for certain aids in recent years (such as Anah (National Housing Agency) aids and the scrappage premium). 

Secondly, subsidized financing schemes can help middle- and low-income households finance the out-of-pocket cost. For retrofits, the eco-PTZ (zero interest eco-loan) – with its high cap, zero interest rate, and long duration – is a suitable option for financing energy retrofits. 

Thirdly, the public investments needed to support households in the transition are also increasing. Analysis of public transport in the Île-de-France region shows that the area is well-connected, with numerous services accessible within 30 minutes for most households. However, access to employment areas is less favorable, with over one-third of residents able to access less than 10% of jobs within an hour. The new lines planned for the Grand Paris Express (project of metro lines that will link Parisians suburbs without passing through Paris) are expected to improve this situation by 2030. Note that the conclusions would probably be different for another territory.  Cycling infrastructures are expanding, with more cycling paths and secure parking spaces in train stations.  

Lastly, positive developments are occurring without a clear attribution to specific public policy tools. For mobility, for instance, the used electric vehicle market has finally gained traction, making EVs more accessible to low- and middle-income households, though the impact of various public policy tools (manufacturer standards, corporate fleet greening obligations, bonus-malus schemes, scrappage premium) remains unclear.

2. The transition enables households to achieve significant energy savings.  

Households that manage to invest in deep energy retrofits and/or electromobility achieve substantial energy savings – from €100 to €380 per month for housing and around €80 per month for mobility for a household driving 10,000 km annually. 

Under certain conditions, these energy savings can cover the out-of-pocket repayments, thus avoiding an increase in household mobility or housing budgets. For housing, eco-PTZ monthly repayments are generally covered by the energy savings from deep energy retrofits, though it may not be true when households are in a situation of energy poverty or when housing characteristics or location limit energy savings. For mobility, the cost of purchasing a used electric vehicle over its combustion engine equivalent is covered by energy savings for a household driving 10,000 km annually.

Challenges remain for many households, requiring special public policy attention.  

For some households, access to the transition is more complicated – for example, renters seeking retrofitted homes or households in condominiums where retrofitting depends on collective decisions and where installing an EV charging point is often more difficult. 

Moreover, despite the aid available, the out-of-pocket cost of investments for the transition remains high for middle- and low-income households. For retrofits, aid increases have reduced the cost to approximately €10,000 for apartments retrofitting for low- and lower-middle-income households, but for individual houses, it exceeds €20,000. For mobility, except for the social leasing, the out-of-pocket cost is over €12,000 for a used electric vehicle or a new entry-level model and up to €20,000 for a new standard small car. Compared to a combustion engine equivalent, whether new or used, the additional cost is several thousand euros. 

Households have access to various options to finance these out-of-pocket costs: their savings, a standard or subsidized loan, and leasing contracts for vehicles. Access to these financing solutions is difficult for households with certain characteristics (low and/or irregular income, little savings, already in debt – for example, for home purchase, elderly). An estimated 5.3 million homeowners over 65 have savings below €30,000, and 13.5% of homeowners paying mortgage or loan cannot finance deep energy retrofits due to their limited borrowing capacity and savings. Therefore, many of these homeowners lack the capacity to finance deep energy retrofits. Debt for financing an electric vehicle can also be prohibitive for low- and middle-income households, with high debt load: over 10% for a new standard small car and over 5% for a new entry-level model or a used vehicle. 

4. There are regional disparities in access to the transition. 

Aid provided by some French local authorities significantly reduces the out-of-pocket cost: some metropolitan areas grant retrofits aid up to €10,000. For mobility, around half of metropolitan areas in low-emission zones (LEZ) provide local scrappage premiums, ranging from €3,000 to €6,000, and the State offers an additional €1,000 premium for households in LEZ, up to €3,000 if a similar local aid exists. 

Household access to the transition also depends on factors that vary by location. For retrofits, it depends for instance on the availability of qualified artisans and advisors. Currently, the total number of artisans appears sufficient, but local tensions are possible. For electromobility, public charging points are needed: their numbers are increasing but not as fast as the electric vehicle fleet, and the vehicle-to-charging points ratio varies by location. 

5. Data gaps prevent a comprehensive evaluation.  

Several data gaps prevent a thorough evaluation of household access to the transition. First, there is no overall view of local aid schemes, including the number of municipalities offering retrofits or mobility aid, the number of households that could access them, the aid amounts, eligibility criteria, or effective beneficiaries. 

Secondly, only partial data exists on the beneficiaries of national schemes. Information is publicly available on beneficiaries of some schemes (scrappage premium, Anah aids – though more precise beneficiary categorization would be helpful here) but limited or nonexistent for others (the ecological bonus, reduced rate VAT, energy-saving certificates (CEE)). 

Finally, no indicator exists to measure the access quality to public transport services at the national level.

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