The French government has recently launched a new plan aimed at financing low-carbon projects as part of the green industry law. This plan, set to start on July 1st, is targeted at young people and is expected to generate over one billion euros in annual collections at its full potential.
The green industry law, passed in October 2023, aims to reindustrialize France while promoting decarbonization. The government plans to reduce the time needed to set up factories and promote the deployment of major decarbonization technologies such as wind power, photovoltaics, heat pumps, batteries, and carbon-free hydrogen.
As part of this initiative, the future climate savings plan will be a new financial product designed specifically for young people. Each individual can have only one plan and can contribute a maximum of 22,950 euros per year. Funds saved in this plan will be blocked until the account holder reaches the age of majority to support longer-term projects for the ecological transition.
The return on investment for this plan will depend on the investment strategies of traditional life insurance players who will distribute the product. Finance Minister Bruno Le Maire has stated that the returns on this plan will be higher than the current rate of Livret A, which is 3%.
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