Today's Date:

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Mr Mohamed ElBaradei, Director General of the International Atomic Energy Agency (IAEA) and I take great pleasure in welcoming you here today. Mr Donald J. Johnston, Secretary-General of the OECD, was unfortunately unable to be with us today but we will have an opportunity to hear his message to us.

I am pleased to welcome 28 ministers, 74 delegations from countries representing every region of the world and 10 international organizations for this particularly important conference.

It is no accident that France wanted and was selected to host this conference, organized at the initiative of the IAEA with the support of the OECD Nuclear Energy Agency (NEA).

As you know, France opted many years ago for nuclear power. Most of her nuclear power plants will reach the end of their life between 2020 and 2040. In recent years, France has therefore conducted an in-depth review to prepare her energy policy for the decades ahead. I will come back to this in greater detail.

Looking beyond the French borders, energy issues are obviously a critical concern for the entire human race. We are all aware of this, as witness the presence of so many stakeholders.

I. I would like to begin by giving a rapid overview of the issues of this conference

1/ First, our energy environment has changed significantly at the dawn of the new century.

- The global demographic trend and strong economic growth in Asia are accompanied by a durable increase in energy needs. We know that fossil energy resources will not meet these needs indefinitely. We need to find energy-production methods allowing us to diversify our sources of raw materials.

- A major concern has emerged in recent years, the global warming caused by the greenhouse gas emissions from fossil energy sources.

At a time when many countries want adequate, inexpensive energy-production sources and may have to cope with programmed cuts in nuclear capacity, I consider it essential for us to be able to exchange our views and concerns and of course to express the sentiment of our fellow citizens.

2/ The idea here is not to promote nuclear energy for all needs in all areas of the world, but rather to review the role of this source of energy.

The comparison of experiences and discussions between experts from different countries can help us accomplish this.

I want France to participate in all forums where these key issues are discussed and I want such discussions to be democratic and transparent.

This is the objective of the international conference being held today and tomorrow, during which country presentations on national solutions will alternate with roundtables of international experts, whose debates are intended to enrich our review.

We shoulder a heavy responsibility and the issue is complex. It is our duty to make sure our countries have enough energy for the next 10 to 20 or even 50 years.

We want this energy to be accessible to everyone at a price which does not hamper economic growth.

As you know, this means that it must be produced and supplied at minimum cost with maximum stability.

But our responsibility does not stop at our borders. This is partly because the liberalization of the energy markets – for which a balance must be found between supply and demand – raises new problems.

But it is also because the externalities connected with energy production, particularly greenhouse gas emissions, transcend our borders.

A first roundtable of renowned energy and nuclear power experts will discuss these issues this afternoon. The idea is to take stock of the global energy situation and outline the framework within which to implement energy strategies:

- first, the roundtable will take stock of existing and future global energy resources and needs,

- next, discussions will focus on analysis of major environmental issues connected with energy, including climate change and the nuclear-specific problem of radioactive waste management.

3/ While nuclear power is an answer to the energy problem for many countries, it is not the only one and it certainly cannot take care of all issues.

Certain energies – known as renewable energies – are inexhaustible and need to be exploited to their maximum potential.

We must also continue research in all areas permitting the production of energy, particularly electricity, without greenhouse gas emissions. Lastly, we need to develop the most appropriate framework for the use of nuclear power. Safety and security are vital issues and need to be controlled.

The total production cost of nuclear power is competitive compared with other sources of energy. This cost has a particular structure, characterized by a high initial investment and so-called long-term charges – i.e. decommissioning and radioactive waste management charges – which need to be factored in throughout the working life of power plants.

So a second roundtable will meet tomorrow morning to discuss a strategy for optimizing the use of our nuclear potential. This roundtable will not only look at strengths but also at constraints: - first, it will examine the structural factors governing energy choices – including economic, strategic and social factors – and analyse the advantages and framework of international cooperation,

- the final debate will focus on the resources required to ensure optimum use of nuclear power. The objective is to outline an essential framework, particularly the role of the State and international organizations in providing strong foundations for the sustainable development of safe nuclear power.

II. I would now like to say a few words about France's energy policy and the role of nuclear power in France

France has limited natural energy sources. Her vulnerability became acutely obvious during the oil shocks in the 'seventies, which prompted her to embark on a major nuclear programme.

1/ During the last thirty years, France's energy policy has been driven by four main concerns:

- supply security in the short and medium term in order to avoid breakdowns with a negative impact on health, well-being and the economy;

- competitive cost of energy for businesses and private citizens. The General Directorate for Energy and Raw Materials at the Ministry of the Economy, Finance and Industry regularly publishes a comparative analysis of power production costs. The most recent study dates from 2004 and shows that nuclear power is the least expensive source of electricity for France;

- environmental protection: the purpose is to combat and minimise environmental damage caused by the production and use of energy, pursuing objectives which are at least as ambitious as those set by the European Commission for 2010 (CO2 emissions, ozone layer, renewable energies, etc.); France is committed to keeping emissions at the 1990 level until 2010 and to reduce them by a factor of four by 2050.

- solidarity between regions and towards the poor.

Thanks to the nuclear programme launched in the 'seventies, nuclear power now accounts for the lion's share of power production (78%), followed by hydropower, which accounts for a significant 12%.

This has generated the following benefits:

- an energy independence rate of 50%, up from 26% in 1973;

- an energy bill representing 1.8% of France's gross domestic product, down from 5% in 1981.

In 2004, the use of nuclear power allowed France to save 36 million tonnes of carbon, or one third of annual carbon emissions. France believes that nuclear power can play a key role in sustainable energy development provided we pay close attention to three conditions. First, industrial operators need to continue to maintain a high level of safety. Secondly, safe long-term storage solutions must be worked out for all types of radioactive waste. And thirdly, the public must be informed and allowed to contribute input.

In Europe, nuclear power accounts for 33% of total electricity production. The greenhouse gas emissions avoided this way correspond to the emissions of all the vehicles on European roads! World-wide, the existing nuclear power base already lowers CO2 emissions by 2.2 billion tonnes, compared with total emissions of 24 billion tonnes. This is twice the reduction which the Kyoto Protocol requires from the developed countries by 2008 and 2012 at the latest.

2/ France's installed base of nuclear reactors is still young (on average 19 years old). However, we need to prepare for the future.

As part of initiatives to prepare ourselves for the future, we launched a national energy debate in 2003, which concluded inter alia that nuclear power plays a key role in the French energy mix. Our objective is therefore to optimize the balance between new energies, nuclear power and expected technological innovations in order to be prepared for 2020, the year when we will have to start replacing our installed base of nuclear power plants. When the new energy bill was discussed in spring 2004, the French government proposed four indissociable priorities:

- Rekindling energy saving efforts in order to reduce energy intensity by 2% per year as early as 2015 and by 2.5% between then and 2030 and – going beyond compliance with the Kyoto Protocol – to reduce France's CO2 emissions by a factor of four by 2050;

- Keeping the nuclear option open with the launch of the European Pressurized Water Reactor (EPR), a joint French-German project;

- Developing renewable energies such as wind energy and biofuels;

- Breathing new life into research into new energy technologies.

In addition to this bill, the “Climate Plan”, published in July 2004 by the French Government as part of its commitments in the fight against greenhouse gas emissions, contains measures for all economic sectors and for households in order to save almost 15 million tonnes of carbon equivalent a year by 2010. Most of these measures target energy, which accounts for about 80% of emissions in France.

France has therefore decided to build a third-generation pilot reactor, the EPR, in order to obtain the data needed to base preparations for the 2020 deadline on an informed choice. This reactor is scheduled to be commissioned in 2012.

But we need to prepare for an even longer-term future. France is therefore a member of the Generation IV International Forum set up to develop future nuclear systems which could be available by 2040, and participates in ITER, a project with an even more distant timescale to explore controlled thermonuclear fusion.

France further supports her nuclear energy choices with a broader analysis of the conditions under which nuclear power must be developed.

We will particularly need to find answers to the nuclear waste management problems raised by existing power plants, especially to keep the nuclear option open when the time comes to replace the installed base of power plants. Indeed, this is a major concern for the French, 28% of whom feel that "the production and disposal of radioactive waste is the main drawback of nuclear power".

In this area, France has opted for processing and recycling spent nuclear fuel as part of her sustainable development strategy. This process makes it possible to separate such high-activity products as plutonium and uranium from other waste. This technology thus allows us to save raw materials and reduce the quantity of final waste. Another advantage is that it helps fight proliferation by recycling the plutonium left after the fuel has passed through the reactor.

France is moreover committed to finding management solutions for high-level long-lived radioactive waste.

France is reviewing her entire nuclear strategy under the so-called Bataille Act, adopted in 1991 at M. Bataille's initiative. As part of this process, the government will present Parliament in 2006 with the combined results of fifteen years of scientific research and democratic dialogue. I want to thank M. Bataille for giving France an opportunity to carry out this arduous and lengthy task early enough to permit decisions to be taken in optimum conditions.

France has moreover adopted an administrative and regulatory framework allowing her to achieve, particularly in the area of nuclear power, a very high level of safety and radiation protection.

This result reflects ongoing, concerted analysis at both national and international level. As part of this process, we redefined the status and missions of our Nuclear Safety Authority in 2002, and supported the initiative taken that same year by Mrs de Palacio to provide the European Union with binding legal instruments to align nuclear safety levels with the highest standard.

Our will to make the most of our experience, particularly in the area of nuclear safety, has prompted us to forge bilateral cooperation programmes with many countries wishing to develop a civilian nuclear industry. In this context, France considers it extremely important to work out a clear and strict framework to prevent proliferation.

France offers her nuclear technologies and the possibility to use this energy only to those countries which have agreed to put their nuclear sector entirely under the control of the Vienna Agency and to comply strictly with their international nuclear non-proliferation commitments.

France wishes to discuss the energy challenges ahead with anyone who wants to do so in a spirit of frank and open exchange. I hope that this conference will set an example and will allow all of us to improve our understanding of the role of nuclear power in the twenty-first century./.