France has the blueprint for green reindustrialisation – but does it have the necessary tools ?
The transition to a clean economy is not only a matter of laws and targets: it needs to be built. France is currently implementing its ambitious blueprint for the green reindustrialisation plan adopted in 2021 – France 2030 – at full steem. Yet as any good foreman knows, detailed plans are only the first step, and financing and technical challenges can see the most ambitious projects halted in their tracks.
With France 2030, the country is attempting to transform existing value chains, such as steelmaking, automotive and aerospace, from 20th century strengths into competitive industries for a decarbonising 21st century, while building the industrial and energy infrastructure necessary for that transformation to be one that is truly “Made in Europe”.
A project developer needs to be sure of their tools and materials before the workers can break ground. Any disruption to the supply of materials or connection to the grid leads to delays, cost overruns, and the prospect of failure. Transforming entire industries requires the same considerations, but on a national scale. In our latest I4CE paper, we examine the progress made across three value chains crucial for France’s green industrial base – batteries, green steel, and synthetic sustainable aviation fuels.
Fortunately, policymakers can already point to good progress on the ground. From the gigafactories and the emerging “Vallée de la Batterie” in the north and Arcelor Mittal’s landmark €1.3bn investment in Dunkirk to Fos-sur-Mer in the south, new green industrial ecosystems are being built.
Yet weaknesses in the supply chain could risk this momentum hitting a brick wall. Several projects across all three sectors are stalled, waiting for final investment decision. Investors, for their part, are hesitant to commit to risky, innovative projects in the face of higher productions costs and stiff competition from China and other global players.
To keep this project on track, policymakers need to take another look at their toolbox, such as targeting public funds at supporting projects over the finish line and during their difficult first years of operation. Doing so is a matter of urgency. The plans are drawn, the groundwork laid – but unless financing catches up with ambition, the green industries of tomorrow will be built elsewhere.
