Newsroom

Finance glossary

What is productive investment in the context of ecological transition?

qu'est-ce que l'investissement productif dans un contexte de transition écologique ?

Productive investment is important for the future of industries in order to maximise the potential success of the France 2030 plan and the proposals for green industry.

Faced with environmental challenges, governments and businesses are actively seeking solutions. The State is now offering aid to encourage industrial companies to make the ecological, digital and energy transition. Productive investment is a key driver of change towards a greener economy. However, in Europe, it is 2% lower as a percentage of GDP than in the United States. Europe needs to step up its spending on productive investment in order to be on a par with global investment, particularly with regard to the decarbonisation objective.

In this article, you will find a definition of productive investment, and then we will look at how to implement it in your company in a context of ecological transition, the possible aid and its advantages.

1. What is the definition of productive investment?

Productive investment represents a financial allocation for goods or projects with a view to creating income or developing a company’s production capacity. This may be in equipment, infrastructure, factories, research and development, employee training, the acquisition of new businesses or geographical expansion.

The development of productive investment helps to improve economic growth, job creation and competitiveness.

In this context of economic transition, this type of investment is not just about economic growth, but also about reconciling profitability with environmental safety and well-being.

2. How can productive investment be made in a context of ecological transition?

Would you like to become involved in the industry of the future?

This means integrating new modes of production and organisation into your business, including new technologies. Today, user needs are central. Here are some ideas for organisation and objectives.

New ways of organising

 

– Use collaborative solutions with your entire ecosystem.

– Potentially review the entire value chain to respond to market developments and needs.

– Offer customised goods including high mass costs thanks to a more adaptable production tool.

– Be transparent about manufacturing by communicating your methodologies.

– Recycle your products.

New objectives

Developing your own technologies. Productive investment in R&D for your own technologies will help you control your greenhouse gas emissions and energy production.

Optimise your energy performance. You can invest in more efficient infrastructure to reduce your energy consumption. This could involve renovating your buildings.

Investing in more environmentally-friendly vehicles, such as electric vehicles.

Engaging in sustainable and ethical business practices to reduce your carbon footprint.

3. What support is currently available for productive investment in France?

The aid is for companies that have implemented solutions based on robotisation, new technologies or the circular economy.

Here are some of the grants available today:

France

A loan of between €50,000 and €2 million for SMEs over 3 years old looking to improve their production capacity (performance, external growth, etc.). To find out more, click here.

Burgundy-Franche-Comté Region:

ERDF and regional grant to promote productive investment in SMEs.

Grand Est :

For farmers and private companies in the agri-food sector, a grant from the Conseil Général is available.
For private companies in the craft, agricultural and private sectors, a grant from the region is being developed to set up new production methods.
For industrial and service companies, a subsidy can be provided to give access to facilitated productive investment.

Drôme:

For private companies, aid from the region is given to help develop the agri-food sector.

Auvergne-Rhône-Alpes:

For private companies, BPI France provides a grant with the aim of changing the economy, employment and work.

4. What are the advantages of productive investment in the context of ecological transition?

There can be many advantages.

Firstly, it allows investors to minimise the financial risks associated with the environment.

In addition, companies that finance their own technologies are more competitive in the long term.

And finally, companies that make productive investments with a view to the ecological transition create jobs in the renewable energy, mobility and waste management sectors.

Productive investment plays a significant role for your company. It’s an opportunity for you to contribute to a more sustainable industry, in particular by looking for greener solutions while improving your production capacity.

To help you set up this type of investment, we invite you to contact a member of the Chetwode team here.

Industrial financing press review

Subscribe to our newsletter

Inscrivez-vous à notre newsletter​


Loading