France unveils $35 bn revival plan

France unveils $35 bn revival plan

Part of: Prelims and GS II – International Relations and GS-III – Economy; Environment 

Context French President has unveiled a five-year, €30 billion ($35 billion) investment plan for developing innovative technology and industrial activity.

Key takeaways 

• The goal of the state-funded France 2030 plan is to boost France’s economic growth over the next decade amid growing global competition with China and the U.S.
• The plan includes €8 billion to develop energy technology that would help reduce greenhouse gas emissions. 
• The funding would finance the building of small, modular nuclear reactors in France, which relies on nuclear power for 70% of its electricity.

• The plan calls for €4 billion to be used to develop about 2 million electric and hybrid cars by the end of the decade.
• France will invest in building its first “low-carbon plane” by 2030. 
• The plan also provides money to develop by 2026 a reusable launch system to propel spacecraft.

Carbon-neutral Economy

• EU leaders have agreed that nuclear energy could be part of its commitment to making its economy carbon-neutral by 2050, giving member countries the option of using it in their national energy mixes.
• However, Germany and some other countries argue that nuclear power should not be included in plans to finance greener energy because it requires mining and long-term storage of radioactive waste.
• France has vowed to become “the leader of green hydrogen” power by 2030
  • Green hydrogen is a  form of energy which does not emit carbon dioxide and can be used in industries such as steel and chemical manufacturing that currently rely on fossil fuels.