The Green Industry Law, adopted in France, is a crucial step in the development of the green industrial revolution in Europe, as it combines environmental sustainability and economy. Drafted following a long consultation with civil society and elected officials, the legislation was enacted as a response to climate challenges and as a competing response to the US Inflation Reduction Act of 2022.
Thanks to this law, reindustrialization will be expedited and a regulatory framework for the development of green technologies will be developed, in response to American incentives for the green economy. The Inflation Reduction Act did accelerate the passing of the French law, to ensure leadership in the green industry on the European continent.
The law would help France to position itself at the forefront of environmental transformation.
The law focuses on three main areas – financing green industry, facilitating industrial facilities and promoting environmentally responsible public procurement. Key initiatives include the drafting of a climate future savings plan for under-21s, designed to encourage investments in the environmental transition through tax breaks and exemptions from social contributions, according to the Ministry of Economy, Finance and Industrial Sovereignty.
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Furthermore, the law promotes the use of life insurance and retirement savings to finance the decarbonization of SMEs.
Special emphasis was placed on the adoption of environmental criteria in public procurement processes.
The new measure – the C3IV tax credit – is also one of the law’s novelties, which came into effect on March 14, 2024. C3IV is designed to encourage investments in vital sectors of the energy transition, such as battery technologies, wind power, solar panels and heat pumps. This should lead to the creation of 40,000 new jobs by 2030. C3IV is a key tool in achieving France’s ambitions to reduce CO2 emissions and promote sustainable industry, according to the French government’s press release.
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