France to Invest Over $35 Billion to Boost the Economy Through Renewables

France has announced its plans to invest €100 billion (~$118.4 billion) to retrieve the economy from the damage caused by the COVID-19 pandemic. As part of its ‘France Relance’ (France Relaunching) plan, the government has allocated €30 billion (~$35.51 billion) for the green energy sector.

The total impetus of €100 billion is one-third of France’s annual budget, 40% of which would be facilitated through the member states of the European Union until 2026 and would be payable by 2058.

The focus would be on the energy renovation of sectors like transport, buildings, agriculture, and power to develop the country through sustainable growth.

According to the announcement, the government will invest €2 billion (~$2.36 billion) to expand the green hydrogen sector to achieve carbon neutrality before 2050. The funding will be used to assist the companies in executing projects related to hydrogen solutions and setting up a common European project to industrialize the sector in the region.

As a part of the recovery plan, the government will invest €4 billion (~$ 4.73 billion) to finance the energy renovation of public buildings to reduce the overall greenhouse gas emissions in the country. It will also invest around €2 billion (~$2.36 billion) for the energy renovation of private buildings in the country over the next two years.

The government notice added that it would allocate €1.2 billion (~$ 1.41 billion) for the decarbonization of the industrial sector as it accounts for almost 20% of total greenhouse gas emissions of the country. The investment would be utilized to support industries to enhance their investment in equipment with fewer carbon emissions.

In addition to this, the government will provide funding of €1.2 billion (~$ 1.41 billion) for green infrastructure and mobility projects in the country. The funding would be utilized to develop mobility projects and public transport services that can reduce greenhouse gas emissions.

France’s Data and Statistical Studies, in its recently released report, stated that the country had added 379 MW of new solar capacity during the first half of 2020. France had managed to install 405 MW of solar capacity in 1H 2019. These new installations are mainly concentrated in the southern part of the country. The total cumulative installations in France reached 10.3 GW at the end of June 2020.

Mercom earlier reported that the International Renewable Energy Agency’s (IRENA) Coalition for Action had asked governments to take effective response measures to address the immediate and long-term impacts of the global COVID-19 crisis. IRENA had put forth recommendations on how governments can ensure a rapid and sustained economic recovery that aligns with climate and sustainability objectives.

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