Government schemes that can be used by local authorities to support reindustrialisation

Practical notebook no.16 : (Re)developing productive activities in metropolitan regions

Thierry Petit, November 2024

Institut Paris Région (IAU)

To download : cp16_ok_bat_web.pdf (7.3 MiB)

Many of these schemes have a territorial dimension, with actions specifically designed to link in with the projects of local players, as we have seen with the competitiveness clusters or more recently with the ‘Territoires d’industrie’. This territorial approach is also illustrated by the mobilisation of specific players, such as the ANCT or the decentralised State services in the regions, which provide the interface with the local authorities.

There have been several major plans over the last two decades, the latest of which, ‘France 2030’, aims to develop the competitiveness of industry and the technologies of the future, develop new sectors and support industrial companies in their ecological transition.

The plan, to be launched in 2021, has a budget of €54 billion. One of the actions it supports is the €100 million ‘Industrial Rebound’ AMI, designed to provide support for areas facing changes in the automotive industry. The Grand Paris Seine et Oise region was one of 19 selected nationwide. It also funds a number of sectoral plans, such as the €5 billion automotive plan, which includes calls for projects (AAPs) dedicated to innovation in the industry and the modernisation and diversification of many automotive subcontractors, and the ‘Innovation Santé 2030’ plan, This €7.5 billion plan includes several calls for projects to support innovation in biotechnology, biomanufacturing, medical devices and digital health, and has helped relocate the production of several active ingredients to France. It also includes the €2.3 billion ‘Industrial start-ups and deep tech’ strategy, with a multiannual ‘Première Usine’ AAP worth €550 million to support industrialisation projects, most of which are carried out by SMEs (in all sectors). Paris Region benefits from each of these schemes.

Another symbolic action of the France 2030 plan is the national strategy for mobilising industrial land, which aims to mobilise 22,000 hectares of land for productive activity by 2030, including 10,000 hectares by reclaiming brownfield sites and 3,500 hectares by densifying existing sites. Discussions have taken place between the State and the Regions to determine which sites will be selected in each region. In the Île-de-France region, the study carried out in 2023 on key sites has provided some answers.

To speed up the recycling of economic land, the Fonds d’accélération de la transition écologique dans les territoires or ‘Green Fund’, with €2 billion in funding, can finance brownfield recycling projects supported by local authorities.

The Green Industry Act, passed on 23 October 2023, complements the France 2030 plan and aims to provide the means to redevelop industry in France by targeting low-carbon industries, simplifying administrative procedures and remobilising abandoned sites. Its objectives are to

• halve the time taken to set up an industrial site, from an average of 17 months to nine, with an exceptional procedure for projects of national interest;

• clean up brownfield sites and put them back to productive use by mobilising the ‘Brownfield Fund’, with €1 billion invested by the Banque des Territoires, with a target of 2,000 hectares of industrial land;

• propose 50 ‘France 2030’ sites;

• accelerate the process of reindustrialisation in the regions for green industries (batteries, solar panels, wind power, green hydrogen, heat pumps);

• create an exceptional simplified procedure for major projects of national interest;

• Encourage the recycling of industrial waste by making it easier for waste to cease to be waste and making it possible to use recycled raw materials to manufacture new products;

• make public procurement greener by introducing environmental criteria

• develop skills by funding the Circular Industry and Mobility Campus (CMQ ICM) dedicated to circular industry at Renault’s Flins plant.

The law also introduces regional planning for industrial land into the Town Planning Code. This planning will have to be carried out by the Schémas régionaux d’aménagement, de développement durable et d’égalité des territoires. This provision was already included in the Code for the SDRIF-E in Île-de-France. The SDRIF-E, which was adopted in autumn 2024, projects urbanisation capacity dedicated to industrial development and protects a certain number of business sites, primarily for industry.

In addition, as indicated in the introduction, the State has set up specific actions on the scale and at the initiative of the territories.

Nearly twenty years after their creation, the competitiveness clusters have become essential tools for cooperation and coordination of local ecosystem players. These clusters have now been confirmed for a fifth phase, from 2023-2026. The State’s action consists of supporting the financing of collaborative R&D projects via the Fonds unique interministériel (FUI) managed by the Regions and participating in the financing of the clusters’ governance structures by mobilising partners (ANR, Bpifrance which notably manages the FUI, etc.).

In addition, the ‘Territoires d’industrie’ action, launched in 2018, which aims to support local initiatives, has been a resounding success. A second phase covering the period 2023-2027 has been launched, with a budget of €100 million in 2023 from the Green Fund. The actions financed are defined in collaboration with the Regions and local authorities. In the Île-de-France region, seven ‘Territoires d’industrie’ have been approved, along with 27 ‘turnkey’ industrial sites.

The aim of the Action coeur de ville programme, steered by the ANCT, is to reintroduce productive activities into the heart of medium-sized towns, which are their direct contacts. The second phase (2023-2026) has a budget of €5 billion. Its main partners are the Banque des territoires (Caisse des dépôts), Anah and Action Logement.

In order to implement these measures in collaboration with the local authorities concerned (Region, EPCI, municipalities), the State relies on a network of decentralised services and operators present in the regions. Among the decentralised government departments responsible for industrial issues, the key role of the Dreets (Drieets in Île-de- France) and the Drieat should be mentioned.

The Drieets (Regional Interdepartmental Directorate for the Economy, Employment, Labour and Solidarity) is responsible for initiatives to develop industries and support businesses, economic change, competitiveness and business protection.

The Drieat (Direction régionale et interdépartementale de l’environnement, de l’aménagement et des transports) is a decentralised department of the Ministry for Ecological Transition and Territorial Cohesion and the Ministry for Energy Transition. One of its missions is to support local authorities in planning and development in the Île-de-France region, by integrating environmental issues, functional and social diversity, urban quality and innovation. It examines applications for approval of business premises, and monitors and inspects the risks associated with Installations Classées pour la Protection de l’Environnement (ICPE - facilities classified for environmental protection).

The State, in its action to support industry, relies on organisations whose activities have a territorial dimension, in particular the Caisse des dépôts et consigna tions via its subsidiary Banque des territoires pour l’action territoriale and Bpifrance (public investment bank) as well as Ademe (Agence de la transition écologique). The Banque des territoires provides support to local and regional authorities in the areas of consultancy, engineering and as a trusted operator. It offers financing for regional projects, particularly productive ones, to support the ecological transition and regional cohesion. Among other things, it supports the Territoires d’industrie programme, with a budget of €1 billion, the Plan de relance pour l’industrie and the Action coeur de ville programme.

It is developing three types of investment: direct equity and quasi-equity in real estate, through holdings in operators and developers such as semi-public companies, and via private funds. For its part, Bpifrance, the bank for entrepreneurs, supports businesses of all sizes in their development, including export and innovation. This is achieved through loans, guarantees, aid for innovation and equity capital, as well as advisory and training services in conjunction with government and regional policies.

For example, it is leading the ‘Industrie du futur Île-de-France’ call for expressions of interest. It has injected €67 billion into the French economy by 2022, including €8.2 billion in guaranteed loans to 60,000 businesses. Lastly, as operator of the France 2030 investment plan, Ademe has a budget of €5 billion to support the deployment of mature solutions and projects for the deep decarbonisation of industrial activities. It also provides assistance for local authority-led projects to convert polluted brownfield sites from former ICPE or Mining Code sites. To facilitate the redevelopment of brownfield sites, Ademe supports the funding of studies to assess the risk of pollution, question the intended use of the site and define pollution management and clean-up strategies tailored to the planned project.

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