French Green Lobby Worries About Subsidy Cuts for EVs, Housing

(Bloomberg) -- France’s main renewable energy lobby voiced concerns that the new government currently being formed may cut subsidies for housing renovation, electric-car purchases and the construction of district heating networks in order to curb the budget deficit.

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Spending plans proposed by outgoing ministers show that such subsidies “seem to be the casualties of budget decisions aimed at reining in financial debt,” Jules Nyssen, president of Syndicat des Energies Renouvelables, told the press in Paris on Thursday. “We will strongly fight anything that would impact demand for decarbonized energy.”

While France’s new Prime Minister Michel Barnier prepares to form a new government, caretaker Finance Minister Bruno Le Maire said this week that his successor should cancel some spending to keep a lid on the deficit. He also suggested introducing a new tax on power producers that might generate €2.8 billion ($3.1 billion) in receipts.

Nyssen also urged the next administration to enact renewable energy targets proposed by the outgoing government to underpin the industry’s supply chain. A first test of the level of ongoing political support should come around Sept. 26, when the government is due to detail new areas for future offshore wind development, Nyssen added.

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