As part of the recovery plan, 1.2 billion euros has been mobilized to support companies wishing to equip themselves to reduce their GHG emissions or improve their energy efficiency through the “aid for investments in decarbonization of industrial production tools”. It aims to enable industrial companies of all sizes to easily obtain grants for their energy efficiency projects of less than 3 million euros, thanks to a simplified and non-competitive process.
The new expanded scope of the grant for funding
By an order of May 28, 2021, the French Government has expanded the scope of this grant which now finances 21 predefined categories of equipment since the integration of the following four new categories:
- Electric industrial furnaces in replacement of fossil-fired furnaces
- Systems to reduce heat loss from heat transfer fluid or refrigerant networks, such as insulation
- Equipment enabling connection to a heating or cooling network supplied with 60% renewable and recovered energy
- Systems for reducing energy consumption by vacuuming.
The scope of existing categories is also expanded
In addition, the scope of some pre-existing categories has also been modified to allow the funding of more equipment (e.g. the category relating to “measuring equipment or recorders allowing better control of the energy efficiency of installations […]” becomes “measuring systems or recorders, possibly accompanied by software, allowing monitoring of energy performance and/or reduction of leaks in industrial installations […]”).
Modified aid rates
Finally, the applicable aid rates have been modified, leading the funding intensity for all categories to 50% for small companies, 40% for medium-sized companies and 30% for intermediary-sized and large companies.
Nota: the amount of aid granted for categories 16 to 21 can be up to the ceilings of the COVID aid scheme when applicable, i.e. €225,000 for enterprises in the primary agricultural sector, €270,000 for enterprises in the fisheries and aquaculture sector and €1.8 million for enterprises in all other sectors. If the company has already received payments in this framework, the aid granted will be limited to the residual amount available. It should also be noted that this grant financing the decarbonization investments in the industry can be combined with the Energy Saving Certificates (CEE), also known as White Certificates, but that the amounts received in this context must be subtracted from the expenditure base for the grant.
- The order of May 28, 2021 amending the order of November 7, 2020 relating to the management of support for investments in decarbonization of industrial production tools is available at this link.
- In addition, the Government’s communication “France Relance: broadening the scope of the decarbonization window” of May 29, 2021 is available on the website of the French Ministry of Economy and Finance.