France could offer tax breaks or subsidies to produce climate-friendly technologies in the country according to Monday’s (3 April) proposals from lawmakers who are preparing a green sector bill.
France’s government is worried that it could be left behind by its U.S. counterparts in the race to adopt low-carbon technologies. This concern stems from the $430 billion Inflation Reduction Bill, which was passed by the Biden administration.
To prevent that, Bruno Le Maire, finance minister, has asked a group lawmakers and business leaders to develop proposals to keep French companies competitive and reverse the long-term trend towards disindustrialisation in France.
Monday’s presentation included proposals for tax credits or subsidies based on the company’s French production and investment size.
To ensure that the money flows quickly, the measure could be offered in advance. It would target producers of critical metals, batteries, heat pumps, next generation nuclear plants, photovoltaic, wind generators, carbon capture, storage technologies, semiconductors, and electricity networks.
“Now is the right time to find funding and invest. Le Maire stated that public money is needed to fund the projects.
“We are looking at tax credits to help us accelerate our investments.”
These proposals would be subject to public consultation before they are brought to parliament this Summer. They would be funded by lowering the favourable tax treatment some polluting industries currently enjoy.
The proposals suggested that a tax exemption on fuel consumption which is currently beneficial to the airline industry and shipping industry could be reduced, and that tax on polluting cars could be increased.
According to lawmakers, business leaders, and a finance ministry official, the exact amount and scope of the bill will be determined when it is ready.
