⚠️Automatic translation pending review by an economist.
This article is one of the chapters of the report submitted by BSI Economics to the Evaluation and Control Mission of the Finance Committee of the National Assembly as part of its mission on private investment in the ecological transition, on the basis of which members of BSI Economics were heard on June 28, 2018.
It was written by Marine Coinon and Charlotte Gardes.
Full report:
Findings:
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Household investment accounts for just over €100 billion each year in the national accounts, or around 5% of GDP.
- In 2012, more than half of the housing stock in mainland France had an energy rating of D or E (i.e., « energy inefficient »), compared with only 14% for the most efficient (A, B, or C). Household characteristics have a strong influence on the carrying out of renovation work, its cost, and its financing.
- Tax benefits for housing service providers amounted to €13.4 billion in 2016. These benefits mainly consist of the energy transition tax credit (CITE) and tax expenditures related to reduced VAT rates for work carried out on older housing.
- Building and promoting energy-efficient housing: the level of consumption and consumption per square meter is lower in newer housing.
- The definition of the « green » nature of the funds raised is not consistent in France and Europe.
- The growing popularity and dynamism of « green » investment fund labels, as well as crowdfunding, suggest that policies to steer individual savings towards ecological transition are on the right track.
Proposals:
- In addition to traditional determinants, the dynamism of household investment also depends on whether or not support measures for the sector, from which households benefited in 2016/2017 (i.e., Pinel, CITE, zero-interest loans (PTZ), Eco-Prêt, etc.), are extended.
- Tenants and households living in energy-inefficient housing are twice as likely as average to be recommended for major, cost-effective investments, which seems to be a prime target for improvement.
- There are many housing assistance programs available, some of which are poorly used or not used at all. Existing programs could be simplified and focused on the most effective ones.
- Existing measures and various approaches to channeling household savings toward the ecological transition should not obscure the need for ex ante and ex post evaluation of these schemes, particularly with regard to windfall effects.
- France must implement a coherent strategy for mobilizing capital and simplifying procedures, commensurate with the challenges of the ecological transition.
- Financing the ecological transition requires promoting transparency regarding the carbon impact of financial assets. The use of regulated savings accounts must be accompanied by environmental standards (or labels) that are clear and comparable both at the European level and between products.
