Part 03: Preferential Loans for Domestic Energy Conservation Projects

By Angelo Baggini / Published on Wed, 2008-06-04 09:00

Part 03: Preferential Loans for Domestic Energy Conservation Projects

Year: 2006
Policy Status: In force

On 5 October 2006, the French Government announced the creation of a 10 billion euro fund for the funding of domestic energy conservation projects with low-interest loans.

Available from January 2007, the low-interest loans are based on tax-free bank CODEVI accounts (Compte pour le Développement Industriel).

Now paying 2,75% a year in interest and capped at 4,600 € per person, these accounts will expand to 6,000 € as of January 2007 in order to bear the measure.

This financial measure is complementary to the 2005 tax credit scheme.The acquisition of a domestic energy efficient equipment will then entitle at the same time to a price reduction (tax credit scheme) and a low-interest loan (CODEVI measure).

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These different instruments

By Anne Rialhe / Published on Thu, 2008-09-04 8:55

These different instruments (tax credit, preferential loans…) are part of the Plan Climat, a national Climate Plan, in order to divide by 4 the greenhouse gases emissions in 2050.

A summary of the different laws, named 'sustainable development tax credit (rational use of energy, renewable energy sources)' is available at the website of the relevant ministery.

Details on the tax credit

Beginning of September 2008, the government has announced another similar measure, a zero-interest loan (Prêt à Taux Zéro or éco-PTZ). This green-loan should be effective in September 2009. This loan would be available to finance energy efficiency work in dwellings, without income conditions for the dwelling’s owner. Its value should be 30 000 € maximum, and energy efficiency work should be less than 300 €/m2. Total cost of this loan should be 1 billion € per year, until 2014.

This green loan was promoted during the Grenelle de l’environnement, as a powerful instrument to create a green revolution in French industry. One previous similar instrument is the German "CO2 KfW", launched ten years ago by the Kreditanstalt für Wiederaufbau (a bank for the reconstruction, created after World War 2).

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