France is taking steps to boost investments in environmentally-friendly technologies with the introduction of a new tax credit and cash incentives. President Emmanuel Macron announced on Thursday that the tax credit, set to be included in next year's budget, would encourage private investments worth €20 billion ($22 billion) by 2030, creating tens of thousands of jobs. The credit would cover 25-40% of companies' capital expenditures on wind and solar power facilities, heat pumps and batteries.
The move comes as France looks to compete with US companies who have received major tax subsidies as part of the Biden administration's $430 billion Inflation Reduction Act (IRA), aimed at reducing carbon emissions, boosting domestic production, and manufacturing.
To further boost investment in green technologies, a green industry bill will be presented next Tuesday, including plans to increase investment in training and cut the time it takes to set up a new factory in France to nine months or less.
For consumers, existing cash incentives of up to €5,000 for buyers of new electric cars will now be conditional on their producers meeting strict low-carbon standards, effectively blocking out non-European car manufacturers. “We're going to support batteries and vehicles made in Europe because their carbon footprint is good, we're not going to use French taxpayers' money to boost non-European industry,” Macron stated.
France's focus on environmentally-friendly investments will help to address the country's long-term industrial decline, and support the growth of a sustainable economy. By prioritizing investments in green technologies and sustainable manufacturing, France is laying the foundation for a more resilient and sustainable future.
