On May 16, 2023, the French Minister of the Economy, Mr. LeMaire, announced a draft bill during a government ministerial meeting aimed at revitalizing the "green industry." This legislation seeks to promote industries related to renewable energy and environmental technologies. The bill is scheduled for parliamentary review in July of this year. On October 9th, the bill passed discussions in a joint session of the National Assembly and the Senate, and it received approval in both houses of the French Parliament on the 10th and 11th.
The officially approved "Green Industry Act" is designed to expedite France's reindustrialization process, drive ecological transformation, and address the challenges posed by the U.S. "Inflation Reduction Act of 2022" to the European industrial sector.
Key Provisions of the "Green Industry Act":
The "Green Industry Act" represents a new phase in France's reindustrialization efforts. It aims to achieve two main objectives: to position France as a leader in green technologies necessary for decarbonization and to green existing industries. In essence, the "Green Industry Act" aims to reduce France's carbon footprint by 41 million metric tons of carbon dioxide, or 1% of the total, by 2030. According to the French government, the tax incentives for "green industry investments" will be included in the 2024 fiscal law and should generate direct investments of 23 billion euros by 2030, creating 40,000 jobs.
The French government defines "green industry" as a combination of two main categories of activities:
The creation of new green industries, including the establishment and expansion of new industries that provide products and services for economic decarbonization. This includes items such as batteries, heat pumps, electrolyzers for green hydrogen, biogas, and biomethane production, carbon capture and storage technologies, and more.
Decarbonization of existing industries, regardless of their industry, size, or location, to transition to green operations.
The bill outlines 15 specific measures centered around four priority areas, using climate change as a leverage point for reinvestment and reindustrialization. These four priorities are:
Promoting and accelerating the establishment of industrial bases in France.
Supporting resilient businesses through all national intervention measures.
Mobilizing public and private funding for the green industry.
Green industry vocational training.
The bill plans to train more engineers and technical professionals in France, making green industries a core focus of education and enhancing their appeal. The goal is to reach 100 vocational schools by 2027, doubling the number of learners and strengthening the collaborative partnerships between vocational high schools and businesses.