Battery-renewable ‘Green Industry Act’ announced
“French investment tax cut… Creating a job”
French President Emmanuel Macron (pictured) announced the ‘Green Industry Act’ to support eco-friendly companies investing in his country while announcing additional reforms after the completion of the pension reform legislation. In response to the US Inflation Reduction Act (IRA), the key content is to provide tax deductions for eco-friendly companies such as batteries and solar power that invest in France, and to provide subsidies for electric vehicles in a way that is advantageous to European companies.
The European Union (EU) recently introduced a Green Deal policy that gives tax benefits to ‘decarbonized’ companies in awareness of the US IRA, and France intends to additionally support its own industry in a similar way.
According to the French daily Le Parisien, President Macron invited political and business figures to the Elysee Palace, the presidential office, on the 11th (local time) and announced the need for re-industrialization to reform the industrial structure, revealing the outline of the green industry bill that the government will propose early next week. . “Re-industrialization is the only way to create jobs across France,” Macron said. “We can win the economic, political and geopolitical war.”
In the bill, the contents related to ‘green industry tax credit’ stand out. It is a tax deduction for companies investing in eco-friendly technologies such as batteries, solar panels, and wind turbines. President Macron sees that it can attract 20 billion euros (about 29 trillion won) of investment by 2030.
President Macron plans to provide a subsidy of up to 5,000 euros (approximately 7.29 million won) to promote the purchase of European electric vehicles such as France. He set up a ‘carbon footprint’ as a requirement for subsidized companies. The carbon footprint is the amount of greenhouse gas emissions generated in the entire process of producing, consuming, and disposing of a product, expressed in units of weight. President Macron said, “We will support more European-made batteries and vehicles, which are advantageous in terms of carbon footprint,” and said, “We will not spend French tax money on growing non-European industries.”
The French government has said early on that it will respond to the US and China protecting their industries with the IRA. President Macron will soon announce that Taiwan’s Prologium Technology will invest 5 billion euros (approximately 7.29 trillion won) in Aude-de-France in northern France to build a new electric vehicle battery plant.
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.