In the age of investor ethics and ecological transition, reconciling energy transition with economic growth poses a complex new challenge. For French companies, it can feel like an added regulatory burden—but many are discovering it carries real value, both in profitability and purpose.
The French “Loi Industrie Verte,” adopted on October 23, 2023, marked a significant turning point. Its objective is to make France the leading green-industrial nation in Europe, with concrete targets such as reducing CO₂ emissions by 41 million tonnes by 2030 and mobilising €67 billion in green investments. While much attention has focused on retail savings vehicles and pensions, the law’s greatest opportunity may lie in channeling capital to SMEs and public infrastructure projects—a transformation that some investors are already embracing.
While some critics have focused on the administrative complexity and long-term illiquidity associated with unlisted investments, the underlying intent of the law goes far beyond tweaking pension products. It is, fundamentally, an effort to redirect national savings into mission-critical assets that support long-term sustainability and industrial renewal. This includes bolstering investment in SMEs that often struggle to access traditional capital markets and reinforcing infrastructure that underpins the green transition.
Infrastructure at the heart of green growth
Infrastructure investors, in particular, are poised to play a vital role in this transformation. Firms operating in this space typically target long-duration, tangible assets such as transportation networks, public utilities, energy systems, which require upfront capital but deliver stable returns over decades. Their investment horizon matches well with the goals of the Loi Industrie Verte. Paris-based Meridiam has made long-term, sustainability-oriented investments in public infrastructure such as ports, clean transport, and waste management. Its climate strategy outlines how infrastructure can contribute to both emissions reduction and community resilience. The firm explains: “As an investor in long‑term infrastructure projects, ESG and sustainability considerations are essential due to the very nature of the projects,” and its infrastructure must “provide resilient infrastructure and develop sustainable cities, aligned with the UN Sustainable Development Goals.”
Meridiam’s legacy projects include the South-Europe Atlantique high-speed rail line, the expansion of Calais Port 2015, and investments in transport, healthcare, education, and clean energy in Europe and Africa. These are structured to serve communities over decades, reflecting both environmental and social impact. Similarly, InfraVia Capital Partners has directed significant resources toward digital and energy infrastructure, including renewable heat and district heating systems.
Private capital to fund ecological transition
These examples illustrate a broader trend: the shift toward using private capital to finance public interest. As France seeks to re-industrialise on greener terms, infrastructure investment becomes not just desirable but essential. Institutions such as the European Investment Bank have emphasised that SMEs and infrastructure are central to climate adaptation and mitigation but remain underfunded due to risk aversion and structural financing gaps. Legislative efforts like the Loi Industrie Verte are designed to close that gap, by making capital allocation toward these segments not only possible but required.
For SMEs, which account for more than 99% of all businesses in France, the new framework offers both promise and pressure. By design, it channels funds into unlisted markets where many SMEs reside, offering them new avenues to grow and innovate. According to France Invest, private investment in these firms has historically correlated with strong job creation, increased R&D, and improved sustainability metrics. But to access this capital, many SMEs will need to meet ESG standards, improve transparency, and demonstrate their alignment with the transition’s goals.
On closer inspection, the regulatory push offers more than just constraints. It enables diversification, enhances long-term returns, strengthens national economic sovereignty, and resonates with a population increasingly aware of climate concerns. According to the Autorité des marchés financiers (AMF), 76 per cent of French people consider environmental impact to be an essential metric of capital investment. By nudging capital into productive, sustainable sectors, the legislation aims to transform passive savings into active drivers of ecological progress. Critics cite complexity and illiquidity, but industry players are already responding with innovations like evergreen funds and more transparent ESG strategies.
The core message is clear: sustainable growth is not achievable without significant investment in the foundational systems that support it. The Loi Industrie Verte, rather than being a bureaucratic overreach, can be seen as a tool to reshape financial flows in service of long-term national goals. Infrastructure investors and SMEs are not only beneficiaries of this shift but critical to its success.
If the capital redirection is executed effectively, France could set a precedent for how savings can drive sustainable industrial policy. The opportunity is not just to comply with new rules but to lead a redefinition of growth itself, one rooted in resilience, innovation, and ecological alignment.
Read more:
“Green Growth”: Promise of Opportunity or Regulatory Nightmare?
