Overcoming Financial and Administrative Barriers to the Ecological Transition: A Comprehensive Guide to Aid and Solutions

2023-10-19 15:38:00

Buying an electric car, investing in the thermal renovation of your home… the ecological transition has a significant cost for a majority of French people. This is one of the conclusions of a study by the Institute of Economics for Climate I4CE, a French think tank. Published in the middle of the budget debate in parliament, their conclusion is clear: “The economic conditions are not met today for all households to be able to invest ”, with the risk that this “ generates a rejection of transition policies » and drive “ collectively in an impasse ».

However, there is no shortage of help. Public money covers 25% to 60% of the investment, depending on the scales. Increasingly indexed to income, this aid is “ approximately twice as high for low-income households as for well-off households “. But threshold effects can confuse decision-making for half of the population, those who are neither poor nor rich: “They vary the aid amounts by several thousand euros », Notes the study.

And even with a zero-interest loan, “the financing of the remainder continues to come up once morest the debt capacity ” Household. This amounts to tens of thousands of euros, and represents more than a year of income for the middle classes, and ten years or more for the most modest households.

Electric cars in the viewfinder

Concerning cars, the observation is more alarming. “ When comparing buying a new standard electric city car with keeping an old one car gasoline, this investment does not pay off over 20 years for any household », Notes the study. On the other hand, the purchase of a new electric vehicle compared to its new thermal equivalent “ is profitable in less than six years » thanks to fuel savings. Except that the acquisition still poses “ a cash flow problem »: even with the aid, you have to come out of your pocket between 10,000 and 40,000 euros for a new car and a charging station depending on the model.

And no salvation is to be expected from rental with option to purchase, or leasing, companies, which “in France charge 56% more for the rental of a battery electric vehicle compared to a thermal equivalent “. There remains the second-hand market, favored by a majority of French motorists. It is, however, “ still underdeveloped » in electric and, beware, there is “ a problem of compatibility of already old electric vehicles with current charging systems having experienced rapid technological progress », underline the authors.

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A clear observation but not without remedy

In addition to financial obstacles, the study also highlights administrative burden. But this clear observation is not without remedy. “ An increase in aid between 10% and 50% would be necessary for low-income households and the beginning of the middle classes », as well as an increase in the bonus for the most modest, suggests I4CE. The authors suggest to the legislator possible changes for the eleven current aid programs (six for renovation including VAT at 5.5% on work since 1999, five for electric mobility).

Concerning the extensions announced by the government for aid for the renovation of MaPrimeRenov’ housing in 2024, I4CE recommends “a shift in part of the aid for the wealthiest households » to finance an increase of more than 20% in aid to low-income households and the first half of the middle classes. Even if it means using regulations to push those who have the means to invest.

An additional envelope of seven billion euros

Despite everything, the government has never planned to allocate so much public money to the ecological transition in the 2024 finance bill. With seven billion in additional funding for energy renovation, biodiversity and even rail. The government might in particular finance an increase in the ecological bonus for the purchase of electric vehicles. He also promises answers on the financing of metropolitan RER or measures for energy renovations of housing more “ efficient ».

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But this envelope remains insufficient for some. MaPrimeRenov’, will see its envelope expanded by 1.6 billion euros to bring it to 5 billion in 2024. However, it is accused of financing hundreds of thousands of aid limited only to a change of heating or windows . “We must stop these single-step works, and refocus on the overall and efficient renovation of housing (…) which divides the energy bill by three or four », declared Delphine Mugnier, co-president of CLER Network for the energy transition.

(With AFP)

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