France’s green energy risks stagnating if Le Pen’s party wins the elections

France’s green energy plans to expand renewable energy and fuel by moving away from fossil fuels are under threat from Marine Le Pen’s far-right nationalist party, which could win the most seats in parliamentary elections within weeks and scrap key environmental policies. as Le Pen’s National Rally did. promised to roll back large parts of the European Union’s historic Green Deal and its victory could threaten utilities, renewable energy developers, turbine manufacturers and car battery makers, putting Paris on a collision course in terms of its green commitments to EU partners.

France’s green energy plans are in jeopardy as the three major political groups running in the French parliamentary elections have made campaign promises that would each cost more than 10 billion euros a year just for the purchasing power portions, while Paris already is. is struggling to reduce its budget deficit.

France’s green energy plans are in jeopardy as the far-right party tries to halt the development of renewable energy sources

France’s green energy plans are in jeopardy as the far-right party moves to halt wind and solar energy development, while the Institut Montaigne think tank’s analysis did not provide estimates for the full range of the parties’ commitments and purchasing power. the highest costs for the promises of the left-wing group Nieuw Volksfront, with a central estimate of an additional cost of € 29 billion per year.

Clean energy producers are gearing up for National Rally election victory

France’s green energy plans are angering some voters that climate policies are hitting their pockets and freedom of choice, and they want an end to punitive green policies, said Jean-Philippe Tanguy, who leads the National’s economic and energy platform Rally. who said in an interview: “We don’t want to give up on the plan to reach carbon neutrality by 2050, we want to achieve it by other means.”

France’s green energy plans would be canceled if the National Rally forms the next government

France’s green energy plans would be canceled if the National Rally formed the next government, as it would halt wind energy development, abandon a ban on the sale of petrol and diesel cars scheduled for 2035, reduce home renovation requirements relax. and curb plans to ban the most polluting vehicles from major cities, instead focusing on building new nuclear reactors and supporting the development of clean fuels such as hydrogen.

This policy program would mark a seismic shift in France’s green energy plans and the energy priorities of the EU’s second-largest economy, as President Emmanuel Macron, whose Renaissance Party currently ranks a distant third in recent polls, sets out an ambitious roadmap had lined up for everything from wind, solar and nuclear power, to electric cars, building renovations and green gases, but that’s all up in the air now.

France’s green energy plans will be in grave danger

Nicolas Rochon, the CEO of fund manager RGreen Invest, warned that all companies that are subsidized and have an impact on the population, such as wind energy, will be in grave danger and this will put a brake on France’s green energy plans and the pace of development of the economy. new projects.

Investors, already spooked by the broader economic impact of a possible National Rally win, have been selling off French energy stocks, with energy and gas company Engie SA and renewable developer Voltalia SA falling more than most other stocks in Paris in recent weeks have been traded, so that French green energy plans are in danger of stagnating.

Global populist politicians and France’s green energy plan to reverse low-carbon policies

Populist politicians around the world, from Donald Trump in the US to Nigel Farage in Britain, and France’s green energy plans have pledged to reverse low-carbon policies and downplay climate change ahead of a key election. But the strategy appears to be working with green political parties that suffered major losses in the European elections earlier this month.

In France, Le Pen’s party has become increasingly popular thanks to voters’ fears over rising gas and energy bills due to Russia’s invasion of Ukraine, and the National Rally has pledged to raise the value-added tax on petrol to lower. natural gas, heating fuel and electricity, putting France’s green energy plans at risk, while the costs, which the country estimates at €14 billion, would be partly financed by a temporary tax on windfall profits of energy companies and lower subsidies for renewables.

These policies will worsen France’s budget deficit

Macron’s finance minister, Bruno Le Maire, has warned that these policies will worsen France’s budget deficit, which is already one of the largest in the European Union, and raise borrowing costs for both companies and households, and of the VAT proposed by the National Rally will increase. reduced to almost €17 billion.

The biggest change in green policy following a National Rally victory would concern wind energy, which accounts for about 10% of France’s energy production, and Macron’s plans in France’s green energy plans to provide financial support to grant a major expansion. 1.5 gigawatts of onshore wind projects per year and a tender for almost 16 gigawatts of offshore turbines by the end of 2026.

France does not need more wind energy

Philippe Tanguy, dubbed the “Mr. Economy” of the National Rally, stated that France does not need more wind energy and that its electricity mix is ​​already almost completely carbon-free, with around 90% coming from nuclear, hydro, wind and solar -energy. Moreover, he would even take down a limited number of turbines that are ‘ugly’ in iconic tourist areas.

Clean energy developments have flourished under far-right governments in Italy, Hungary and Poland. Green energy is still suspending all investments highly exposed to France for three months, while the National Rally should win at least 289 seats in the elections. The end of two-round elections on June 30 and July 7 to gain a majority in the National Assembly, a condition set by party chairman Jordan Bardella to become Prime Minister, as the party had 88 seats in the previous parliament.

National Rally in the lead with 32.7%, Emmanuel Macron in 3rd place

Given the structure of the French elections, it is difficult to predict the final number of seats before voting begins, as polls showed the National Rally leading with 32.7% of voting intentions. A left-wing alliance called the New Popular Front was in second place with 26.3%. while Emmanuel Macron’s Renaissance Party and its allies were in third place.

Le Pen’s party would also end support for new solar farm projects using Chinese panels, while backing the construction of photovoltaic equipment in France. Such a step could significantly slow down developments because Europe hardly produces solar panels and projects to build two factories. in France have yet to get off the ground.

National Rally would support the construction of twenty reactors by 2045

In nuclear energy, the National Rally would support the construction of 20 reactors by 2045, going beyond 6 to 14 new nuclear power plants. Macron wants the state-owned utility to build Electricite de France SA, while the costs would be partially offset by savings on energy network investments thanks to the delay of new grid connections for renewables, Tanguy added.

Some investors, such as Thierry Deau, the CEO of Meridiam SAS, which has invested more than $22 billion in infrastructure assets worldwide, are optimistic that France’s green energy plans and the expansion of clean energy in France will continue and he does not believe in a slowdown of investments in the energy transition, his fund has just decided to reinvest in Allego NV, a company that builds car charging networks in France and other European countries, because he is not concerned about the European Green Deal.

Related Posts