France should aim for a 30 per cent cut in fossil fuel use by 2030, President Francois Hollande said in a speech yesterday which included plans for a tax break on home insulation to help consumers save energy.

Hollande faces a delicate balancing act as he reconciles demands for more binding environmental targets from his Green Party coalition partners with French households and businesses increasingly wary of tax rises.

Elected last year pledging sweeping energy reforms, Hollande said the cut in fossil fuel use from current levels was needed to meet the country’s goal of halving overall energy use by 2050.

“Europe must set an example,” he told an energy conference in Paris. “It’s an objective that can stir us, but will have to be adjusted to our growth performance and will suppose major technological innovations.”

Prime Minister Jean-Marc Ayrault is expected to provide details on the proposals today when the two-day conference ends, while fiscal details are likely to be inserted in France’s budget Bill to be presented next week. Hollande has proposed a cut in value-added tax (VAT) on home insulation work to five per cent from seven per cent currently to increase energy efficiency.

The government’s energy ideas include efficiency programmes, a push for more electric vehicles and a boost in renewable energy use. Yesterday Hollande asked his industry minister to speed up construction of charging infrastructure for electric vehicles.