The Government Steps In to Support the Decarbonization of the Economy: How Much Will It Cost?

As part of the fight against climate change, the government has implemented a number of public policies whose stated goal is to help reduce the country’s greenhouse gas emissions.

What we are presenting in this “carbon letter” is the result of an assessment of a number of these policies: support for renewable electricity, support for anaerobic digestion, support for building retrofits to improve energy efficiency, support for public transportation, and others.

For those unfamiliar with the concept of the “Carbone Letters,” these are publications issued on a completely random schedule by Carbone 4 to share with you the studies and insights we’re working on that we believe are worth your attention, focusing on carbon accounting and current events.

We believe the perspective we are sharing with you today is particularly relevant in the context of an economic slowdown, when we feel that public funds must be used as effectively as possible in light of France’s objectives—particularly with regard to the energy and ecological transition.

In a period of sluggish growth and, consequently, limited capital, and as climate change, on the other hand, is becoming more severe every day, we believe it is sound management practice to ensure that the euros allocated to the low-carbon transition are directed first and foremost toward solutions that maximize the amount of emissions avoided per euro invested; otherwise, it will be impossible to stay on a 2°C trajectory.

It is therefore using the cost per metric ton of CO2e avoided as a benchmark that our approach—drawing on the diversity of sectors covered—including electricity, buildings, anaerobic digestion, and transportation—enables us to measure the effectiveness of various public policies in France. And it is the results of our analysis that we would like to share with you today.

We hope you enjoy reading this!

The Carbone 4 Team

Download the Carbon Letter