EDF_REGISTRATION_DOCUMENT_2017

PRESENTATION OF EDF GROUP Legislative and regulatory environment

The Decree of 10 April 2013 also specified the new obligations in terms of identifying, labelling, declaring and using equipment with fluid containing PCBs with a volume of more than 5dm 3 . The rules for conforming to these obligations were stipulated in detail by two orders of 7 January, and 14 January 2014. Greenhouse gases (GHG) Allowance trading scheme Some of the EDF group’s activities fall within the scope of application of Directive no. 2003/87/EC of 13 October 2003, as amended by Directive no. 2009/29/EU of 23 April 2009, which established a European scheme for greenhouse gas (GHG) emission allowance trading, using the project mechanisms set forth in the Kyoto Protocol (the Emissions Trading System (ETS) Directive). In France, this Directive was transposed and integrated into Articles L. 229-5, R. 229-5 et seq. of the French Environment Code. The Group has an annual obligation to surrender allowances equal to the level of CO 2 emitted by its facilities. In order to comply with this obligation, under certain conditions, the Group may use credits issued under projects eligible for the project mechanisms provided for under Articles 6 and 12 of the Kyoto Protocol (joint implementation and clean development mechanism). Under the ETS Directive, the third period for the greenhouse gas (GHG) emission allowance trading scheme started on 1 January 2013. The provisions of the French Environment Code on this scheme were amended accordingly by Order no. 2012-827 of 28 June 2012 (ratified by Law no. 2013-619 of 16 July 2013) and by Decrees no. 2012-1343of 3 December 2012 and no. 2014-220of 25 February 2014. Since 1 January 2013, the rule for the electricity sector is the auctioning of quotas, in accordance with the rules defined by regulation (EU) no. 1031/2010/EC of 12 November 2010. Since that date, EDF has to purchase 100% of its allowances. In order to support the price of GHG allowances on the European market, in Decision (EU) no. 2015/1814 of 6 October 2015, the European Parliament and the Council decided to create a market “stability reserve” that makes it possible to remove surplus allowances from the market. This mechanism will enter into force on 1 January 2019. In addition, a structural reform of the mechanism is currently under way at the European level for the period after 2020. GHG reporting Pursuant to Articles L. 229-25 and R. 229-45 et seq. of the French Environment Code (which were respectively amended by Order no. 2015-1737 and Decree no. 2015-1738 of 24 December 2015), companies with over 500 employees must provide an annual report on their greenhouse gas emissions and a summary of the actions they plan to take to reduce such emissions. Article R. 229-46, as amended by the aforementioned Decree of 24 December 2015, specifies that the “groups defined in Article L. 2331-1 of the French Labour Code may draw up a consolidated report on greenhouse gas emissions for all their companies that have the same level 2 nomenclature code for French activities” and that employ more than 500 persons. The information disclosed is made public and must be updated every four years. Energy efficiency Energy Efficiency Directive On 25 October 2012, the European Union adopted a Directive on energy efficiency (no. 2012/27/EU). The purpose of this Directive, for which the transposition deadline was 5 June 2014, is to enable the European Union to reach its energy savings target of 20% by 2020. With this aim in mind, the Directive enhances the provisions of European legislation on energy efficiency services (no. 2006/32/EC) and cogeneration (no. 2004/8/EC). The Directive of 25 October 2012 contains several provisions that are liable to impact the activities of the EDF group, first and foremost of which is the obligation for Member States to reach an energy savings target each year that is equivalent to an aggregate annual reduction in energy sales of 1.5% over the period 2014-2020, which can take the form of an obligation for energy distributors and/or suppliers to reduce sales. The Directive also contains provisions on providing customers with information on their consumption, the promotion of energy services, taking into account energy efficiency in heat and cold production, and in the transmission and distribution of energy. audits Articles L. 233-1 et seq. of the French Energy Code (derived from Law no. 2013-619 of 16 July 2013, which transposed Article 8-4 of the Directive into French law),

require large undertakings to perform an energy audit on their business activities in France by 5 December 2015 at the latest, then every four years. The thresholds above which undertakings are concerned, the scope of the audit and the conditions to be met by the energy auditors are laid down in Articles R. 233-1 and R. 233-2 and D. 233-3 to D. 223-9 of the French Energy Code, completed by the Order of 24 November 2014 on the terms and conditions of application of the energy audit. Undertakings that use a certified energy management system that is ISO 50001 compliant may, under certain conditions, be exempted from this obligation. In accordance with regulations, EDF has sent an audit report to the administration. Energy savings certificates At the national level, the energy savings certificates (CEE) mechanism, which is provided for in Articles L. 221-1 et seq. of the French Energy Code, places energy suppliers under the obligation to save energy. This mechanism defines a three-year objective that is shared between persons subject to an obligation to achieve energy savings (the “obligors”) based on their sales volumes. At the end of the relevant period and under penalty of sanctions, the obligors must produce energy savings certificates that correspond to the amount of the energy savings they are under the obligation to achieve, which are obtained either by carrying out (directly or indirectly) energy savings actions or by purchasing credits from the other obligors or “eligible” economic players through a National Register of Certificates (the Emmy Register). For the second period of the mechanism, between 1 January 2011 and 31 December 2013, the stated total savings target was 345TWhc (compared to 54TWhc for the first period). In order to ensure the continuity of the mechanism, and until the third period starts, the second period has been extended by one year, from 1 January to 31 December 2014, by a Decree of 20 December 2013. The third period started on 1 January 2015 and ended on 31 December 2017. The energy savings target for the third period was set at 700TWhc (i.e. 233.4TWhc/year). Decree no. 2014-1668 of 29 December 2014 (now Articles R. 221-1 et seq. of the French Energy Code) and several implementing orders that were published in December 2014 determined the conditions and terms for the issuance of CEE for this new period. The Law of 17 August 2015 on Energy Transition for Green Growth amended the CEE system for the third period, by adding an additional system to the obligation that was already provided for, concerning the energy savings made for the benefit of households that are in a precarious situation in terms of energy. Decree no. 2015-1825 of 30 December 2015 (now Articles R. 221-1 et seq. of the French Energy Code) and several ministerial orders of the same date have clarified the rules on meeting the energy savings objectives that are specifically for the benefit of households that are in a precarious situation in terms of energy. The level of this specific obligation for energy suppliers was set at 150TWhc for 2016-2017. The fourth period started on 1 January 2018 will end on 31 December 2020. Decree no. 2017-690 of 2 May 2017 on energy savings certificates sets forth the implementation methods for energy savings certificates for the fourth period. The text sets the total level of obligations for the 2018-2020 periods at 1,200TWhc of classic shares and an extra 400TWhc to be achieved for households in a situation of energy poverty. It involves a doubling of obligations compared with the third period. Registered natural sites and classified sites (buried lines) The EDF group is also subject to regulations on classified and registered sites that are stipulated in Articles L. 341-1 to L. 341-22 and R. 341-1 to R. 341-31 of the French Environment Code. The aim of these regulations is to preserve natural heritage sites and sites for which the conservation, from a landscape, artistic, historical, scientific, folkloric or scenic standpoint, is in the public interest. “Classification”, which is reserved for the most singular sites, provides extensive protection, whereas “registration”, for which the framework of rules is less restrictive, is proposed for less sensitive sites. Under the French Environment Code, new electricity lines on classified sites must be buried. Registration and classification can also have an impact on the day-to-day operation of facilities (if more than one site is visible at the same time; obligation to obtain the opinion of the State architect – architecte des Bâtiments de France –, etc.).

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EDF I Reference Document 2017