The decarbonization of industry was recently included in the stimulus package. On September 3, 2020, the government announced the launch of a €100 billion plan based on three priorities: ecology, competitiveness and cohesion. Of this 100 billion, 30 will be devoted to the ecological transition, through several axes:
- thermal renovation of buildings,
- support for the decarbonization of industry,
- the ecological bonus,
- the conversion bonus for the purchase of a clean vehicle,
- the development of public transport,
- transformation of the agricultural sector,
- research and innovation for the development of green technologies.
But what exactly is decarbonation? Decarbonization means doing without fossil fuels such as oil, coal and gas, and replacing them with renewable energies.
The aim of decarbonizing industry is therefore to help companies invest in production equipment that emits lessCO2fand consumes less energy.
Support for decarbonization of industry
Aid for decarbonizing industry (1.2 billion euros) also supports the French National Low Carbon Strategy, which aims to achieve carbon neutrality by 2050. As a reminder, the Stratégie Nationale Bas Carbone (SNBC) calls for an 81% reduction in greenhouse gas (GHG ) emissions from industry by 2050. Industry accounts for around 20% of France's greenhouse gas emissions.
Two main areas for reducingCO2 emissions have been defined, and support measures introduced:
First priority: Support for industrial investment in processes that consume less energy or emit fewer greenhouse gases.
- Guichet de soutien pour des équipements liés à l'efficacité énergétique ou l'électrification de procédés: managed by the ASP (Agence de services et de paiement), this scheme is governed by decree no. 2020-1361 of November 7, 2020. It is open until December 31, 2022.
- Any company operating in the manufacturing sector, or any company acting as a third-party financier for such an industrial company, is eligible. The equipment concerned must be directly assigned to an industrial activity. The list of eligible assets is appended to the Order of November 7, 2020 on the terms and conditions for managing aid for investments to decarbonize industrial production tools.
- Support for investment in the decarbonization of industrial activity ;
- Support for investments to decarbonize industrial production facilities ;
- Any company in the industrial sector is eligible.
- The cost of the project must exceed 3 million euros.
Second axis: Supporting the decarbonization of industrial heat.
- Operating aid for biomass heat ;
- Any company operating in the manufacturing sector is eligible.
- This aid is reserved for biomass projects exceeding 12,000 MWh/year.
- Operating aid for heat from Solid Recovered Fuels (SRF).
- Any company operating in the manufacturing sector and selling the heat generated to one or more companies operating in the manufacturing sector is eligible;
New calls for projects to promote the decarbonization of industry were launched in mid-March 2021:
- A single call for projects (DECARB IND) is being renewed in 2021 with a broader scope: in addition to improving energy efficiency, process transformation in all its forms is now eligible;
- The call for projects in support of biomass heat BCIAT 2021 was launched on March 11, 2021, and will be subject to a first round on May 17, 2021 and a second round on October 14, 2021.
- The Energie CSR 2021 call for CSR heat projects was launched on October 20, 2020 : After a first round on January 14, 2021, the scheme remains open for a second round, until October 14, 2021 at 11 a.m.
Review of the first selected initiatives
Support for low-carbon heat :
The first 17 winners were selected from the 54 projects submitted. These winners represent :
- 130 million euros in industrial investments;
- 44 million euros in investment aid;
- 83 million euros in operating aid;
- 332,000 tonnes ofCO2 saved per year ;
Support for industrial energy efficiency :
16 new winners join the 16 initiatives already selected in December 2020, and represent a total of :
- 466 million euros in industrial investments ;
- 97 million euros in aid ;
- 12.5% average reduction in greenhouse gases for the sites concerned;
- 410,000 tonnes ofCO2 saved per year.
Note: The Finance Act for the year 2021 requires legal entities under private law (companies, associations, etc.) benefiting from credits under the 2020-2022 stimulus plan and employing more than 50 people to draw up a simplified greenhouse gas (GHG) emissions balance sheet by December 31, 2022. By way of derogation, companies with between 51 and 250 employees are required to draw up this simplified balance sheet by December 31, 2023.
Conclusion
These figures do not allow us to be satisfied with the scale of the measures taken, but rather to have an overall view of the relationship between the investments made, the subsidies granted and the amount ofCO2 saved .
As a reminder, theCO2 emissions reduction target for 2019 was reduced from 2.3% to 1.5%. The record drop inCO2 emissions last year was largely due to the current health crisis. At a time when the "Climate and Resilience" bill is in the hands of Parliament, we can only hope that initiatives in favor of decarbonization, and more generally, energy efficiency, will develop and apply to all sectors of activity.
Photo credit: Chris Robert