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In
the scramble to adopt more low-carbon, France's government is
concerned that its companies could fall irrevocably behind U.S.
rivals, boosted by the Biden administration's $430 billion
Inflation Reduction Act.
To avoid that, Finance Minister Bruno Le Maire has tasked a
group of lawmakers and business leaders to come up with
proposals to keep French firms competitive and reverse a
long-term disindustrialisation trend in the country.
The proposals, presented on Monday, included plans for tax
credits and subsidies depending on the size of a company's
investment or how much it produces in France.
The measure could be offered as an advance payment to ensure the
money flows quickly and would target producers of batteries and
critical metals, electrolysers, heat pumps, next-generation
nuclear plants, photovoltaic and wind generators, carbon capture
and storage technologies, semiconductors and electricity
networks.
"Now is the time to find financing and invest. So we want to put
public money on the table," Le Maire told a conference where the
proposals were presented.
"We want to look at tax credits as a way to speed up the
investments."
The proposals, subject to a public consultation before
legislation is brought to parliament this summer, would be
financed by reducing favourable tax treatment that some
polluting industries currently have access to.
In particular, a tax break on fuel consumption, which currently
benefits the airline and shipping industry, could be reduced and
tax on highly polluting car models could be raised further, the
proposals said.
The lawmakers, business leaders and a finance ministry official
said the exact amounts and scope would be hammered out in the
coming months when the bill is prepared.
(Reporting by Leigh Thomas; Editing by Richard Chang)
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