France’s government has unveiled a new financial product to support low-carbon projects in the green industry. The Future Climate Savings Plan, set to launch on July 1st, is intended for young people under 21 years old and is expected to generate up to one billion euros in annual collection 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.
Young people can now save money towards long-term ecological transition projects with the Future Climate Savings Plan. Each person can have only one plan and 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 sustainable initiatives that will help reduce carbon emissions in France.
The returns on investment for the Future Climate Savings Plan 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%.
