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Government Allocates Nearly 1.6 Billion Euros for Industrial Decarbonization Efforts

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On Tuesday, the government announced a plan to allocate 1.55 billion euros for industrial decarbonization, addressing budget constraints for 2025. Minister Antoine Armand highlighted the need for public and private investments to reduce emissions. The amendment, introduced by Vice-President Roland Lescure, aims to support projects like battery plants and CO2 capture networks, ensuring competitiveness against international standards. As discussions continue, the government aims to bolster industrial sustainability amidst rising competition, particularly from China.

Government Investment in Decarbonization

On Tuesday, the government unveiled a significant amendment aimed at allocating 1.55 billion euros to support the decarbonization of the industrial sector. This initiative comes amidst parliamentary discussions regarding a tightly constrained budget for 2025, a response to the ongoing challenges in public finance, as reported by the Ministry of Economy.

Antoine Armand, the Minister of Economy, emphasized the crucial role of industrial decarbonization in the nation’s economic strategy. “Achieving this goal necessitates substantial investments from both the private and public sectors,” he remarked in a statement to AFP.

Key Objectives and Industrial Competitiveness

This amendment reflects a marked shift from the original budget proposal, aligning closely with the strategy to bolster domestic production while reducing carbon emissions. The Vice-President of the National Assembly, Roland Lescure, introduced the amendment, garnering support from a diverse group of lawmakers who collectively advocated for sustained public assistance for industrial decarbonization in the upcoming budget.

The amendment outlines the necessity of these aids in meeting national and European greenhouse gas reduction targets by 2030. It aims to finance critical projects such as the establishment of battery manufacturing plants, electrolyzers, CO2 capture networks, and wind farms. Furthermore, it seeks to ensure that industrial sites in high-emission sectors remain viable, especially as they contend with fierce international competition that often benefits from less rigorous environmental and social standards.

As the Senate prepares to review this amendment, the Ministry of Economy noted that the discussions with industrial stakeholders underscore the importance of this initiative. Agnès Pannier-Runacher, the Minister of Energy Transition, reaffirmed that decarbonizing industry is vital for achieving climate objectives, stating that these new funds will empower industrialists to invest in a sustainable future.

In light of current economic challenges, particularly with increased competition from Chinese markets leading to price reductions, maintaining industrial competitiveness remains a top priority. The government is also exploring measures to identify potential savings alongside a proposed budgetary effort of 60 billion euros for the next fiscal year.

The push for decarbonization is exemplified by a recent census identifying 81 major industrial projects aimed at significantly reducing carbon emissions. President Emmanuel Macron previously proposed a decarbonization pact to the 50 highest CO2-emitting sites, promising to double public funding to 10 billion euros in exchange for a commitment to enhance decarbonization efforts.

Looking ahead, Minister Antoine Armand is set to visit Fos-sur-Mer on Thursday, an area noted as the second-largest industrial emitter of CO2 in France, further highlighting the government’s commitment to addressing emissions across the industry.

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