New Energy World™
New Energy World™ embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low-carbon technologies.
French government report calls for $66bn/y investment to achieve net zero
7/6/2023
News
A controversial report by French government advisor France Stratégie is calling for France to invest €66bn/y to achieve targets in accord with the Paris Agreement on climate change.
Measures suggested include building far more debt and taxing the wealthy to foot the bill.
According to French press agency Euractiv, Industry Minister Roland Lescure said: ‘The report will be a landmark in the economics of climate change, like the Meadows Report’. The ground-breaking Meadows Report was published in 1972 and proposed a strategy of ‘limits to growth’ in the context of climate change.
The new report (published in May 2023) estimates that climate action will cost France €66bn/y until 2030. This includes €48bn/y for improving the energy efficiency of buildings (business, residential and public); €7bn/y on renewable energy resources; and €3bn/y on electrifying road transport.
The report notes that a significant part of these investments will have to be provided by the public. It estimates that the cost of switching to an electric vehicle (EV) and renovating the home could be equivalent to one year of salary for middle-class households, and at least two years for those on lower income.
Euractiv reports that a former French minister at the press launch, Cécile Duflot, now Director of Oxfam France, warned: ‘If we do not work on the issue of social justice in this transition, we will go from failure to renunciation.’
The report suggests that €25–34bn/y will have to come from public finances for the energy transition. However, a leading economist and main author of the report, Jean Pisani-Ferry, said this figure may not be enough. In addition, the report forecasts that France may be pushed into new debt by 10% of its GDP in 2030 and 25% in 2040. Pisani-Ferry has suggested a temporary tax on the financial assets of the richest households. However, this idea was dismissed by Economy Minister Bruno Le Maire, who said ‘a new tax is not a solution’.
Furthermore, the report warns that the EU ‘cannot be a champion of climate, a champion of multilateralism and a champion of fiscal virtue at the same time’.
First French battery gigafactory is launched
In other news, France opened its first battery gigafactory at the end of May. The plant is located in Billy-Berclau and is owned by Automotive Cells Company, a partnership between TotalEnergies, Mercedes-Benz and US-European automaker Stellantis, which produces a range of brands including Peugeot, Fiat and Chrysler.
The factory is the length of six football pitches and production is due to begin in the summer.
President Emmanuel Macron hopes to turn the Hauts-de-France region into ‘Battery Valley’ – the electric car industry’s answer to Silicon Valley, competing with a sector which is currently dominated by China.
Sino-Japanese group AESC-Envision is building a battery plant near the city of Douai, which will supply French automaker Renault from early 2025. Meanwhile, French start-up Verkor is due to begin production at a facility in Dunkirk from mid-2025. Taiwan’s ProLogium has also chosen Dunkirk for its first European battery plant, with production scheduled to begin in 2026.
