France’s strategy to tackle climate change while fostering re-industrialisation: C3IV 

Governments are increasingly implementing strategies to reduce greenhouse gas emissions, pressure on biodiversity, and better manage crucial resources. With the Green France Nation plan and the C3IV, France is adopting a concrete, collective, and realistic plan to achieve a successful ecological transition. By providing clear objectives and setting ambitious targets, the French government hopes to drive the EU’s green revolution. 

The green transition is underway 

Initial estimates from Citepa, the Technical Reference Center for Air Pollution and Climate Change, reveal a significant drop in French CO2 emissions. From 404 million tonnes of CO2 equivalent in 2022 to 385 MtCO2e in 2023, the country succeeded in decreasing its emissions by 4.8%. The industry’s downward trend in emissions observed in 2022 (-6 % compared with 2021) continues in 2023, with a decrease of 8% in GES emissions.  

These results show that the industrial sector is intensifying its decarbonisation efforts as part of the “France 2030” measures. Thanks to a supportive framework provided by the authorities, many changes are taking place in the industry as companies adapt their industrial processes or invest in new facilities. 

Making France the leading nation for low-carbon industry in the EU by 2030

The government is pursuing its commitments alongside businesses through the France 2030 plan and the launch of a major programme to support industrial companies in their ecological transition. Launched on 21 October 2022, Green France Nation is a cross-functional action plan to speed up the efforts to reduce its greenhouse gas emissions. Hoping to save 40 million tonnes of CO2 equivalent by 2030, the Green Industry Law voted in October 2023 unfolds two main objectives: fostering the development of green technologies and accelerating the decarbonisation of existing industry.  

To fulfil this vision, a total of €23 billion of investment will be distributed across various actions. One of them is speeding up implementation timescales through the access of “ready-to-use sites” or reducing the time needed to obtain an operating permit. Then, a focus will be put on training people in skills adapted to known sectors, with an objective of 50,000 engineers trained per year. Part of the budget is allocated to financing the production of key decarbonisation technologies thanks to the C3IV tax credit.  

Read more about the pursued ambitions of the Green France Nation plan: France is investing in green industries ! – Business France Nordic 

C3IV to combine ecological transition and reindustrialisation

The tax credit for investment in the green industry (C3IV) is a new tool designed by the French government to support the development of sustainable solutions. Adopted as part of the French Green Industry Act and implemented on 14 March 2024, this tax credit aims to speed up the reindustrialisation process in France to build a greener economy.  

To assist companies in financing key industrial projects for the energy transition, the segments of batteries, solar panels, wind power, or heat pumps are eligible. With rates between 20% and 60% depending on the structure’s size and location, this is the most attractive incentive in Europe to support the green industry. From the extraction of raw materials to distribution, all stages of the value chain are involved, making it available for many players in the field. This tax credit is capped at 150 million euros per principal.

C3IV is an opportunity for companies looking to settle in France to benefit from support and enable competitive clusters to emerge.  This incentive embodies France 2030’s vision by setting ambitious and forward-looking objectives. The C3IV is expected to generate €23 billion in investment and create 40,000 direct jobs by 2030. It should also reduce emissions by 35 million tonnes of CO2. The decarbonisation of industry represents an economic and strategic opportunity for France. It’s also an excellent opportunity for foreign investors to engage in more sustainable industries, offering them a competitive advantage for the years to come. 

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