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Business delegation to France – Market opportunities
Why France?
- France is a leading player in the global economy – fifth largest economy in the world, second largest in the EU‑27, with a GDP of US$2.575 trillion.
- France is Canada’s ninth largest trading partner in goods and fourth largest in services. Bilateral trade will be stimulated by renewed economic confidence in France.
- France has a rich economy with some powerful global companies. It ranks fourth on the Fortune 500, with 29 companies on the list.
- Key economic observers are forecasting economic growth of over 1.8 percent in 2018.
- To fight high taxes and structural rigidities in the country, reforms to increase flexibility and competitiveness have been under way since 2015 and were accelerated by the election of a new administration.
- The recent implementation of some provisions of the Canada-European Union Comprehensive and Economic Trade Agreement (CETA) opens the door for Canadian organizations to enter and expand in the French market.
Sectors overview
Artificial intelligence (AI)
A state policy in the field of artificial intelligence was initially developed by the former Hollande government in January 2017, and is in the process of being finalized under the Macron government. In the meantime, the France AI Hub was officially launched in December 2017 with a goal of creating a “French AI sector”. The association is composed of large groups, small and medium-sized enterprises (SMEs), start-up, non-governmental organizations (NGOs), schools and universities, associations and competitive clusters.
For Canadian institutions and companies, France represents opportunities on three levels:
- potential customers for Canadian companies working with organisations to integrate artificial intelligence (AI) into their production and marketing processes;
- technological partnerships between Canadian centers of expertise and / or academics and their French counterparts; and
- attracting students and researchers to Canadian universities.
Though there are many world-class experts in each of the branches that contribute to the field artificial intelligence, the academic environment is relatively unstructured. Among the institutions that produce dynamic AI knowledge are: the French National institute for computer science and applied mathematics (INRIA); the National Center for Scientific Research (CNRS), École normale supérieure (ENS), l’Université Paris-Saclay (a group of 19 higher education institutions and a business cluster aiming to be Europe’s top multi-disciplinary university), and Centrale Supélec (an internationally-reputed higher education and research institution combining fundamental and applied sciences for innovation). These organizations could be interesting partners for Canadian firms and universities.
Clean technologies
The clean technology sector in France has some significant business opportunities for Canadian companies. To achieve the goals of its Climate Plan, France will need to make massive investments in renewable energies and clean technology. In its Big Investment Plan 2018-2022, the government has committed €57 billion (Can$88 billion) to support structural reforms and address four of France’s major challenges: carbon neutrality, access to employment, competitiveness through innovation and the digital state. The Climate Plan and the accompanying Big Investment Plan represent business opportunities in numerous sub-sectors where Canadian companies have expertise. The 2018-2022 Climate Plan that France announced in July 2017 provides for the following:
- ending fossil fuel production by 2040;
- ending the sale of gas and diesel vehicles by 2040;
- banning the import of products that contribute to deforestation;
- accelerating the domestic price trajectory of carbon, from €30.50 in 2017 to €100 or more in 2030;
- ensuring the widespread use of renewable energy;
- achieving carbon neutrality by 2050.
The four priorities and key figures of the €57 billion Big Investment Plan are as follows:
- accelerating ecological transition: €20 billion;
- building a skilled society: €15 billion;
- securing competitiveness through innovation: €13 billion;
- creating the digital state: €9 billion.
To achieve these goals, the French Environment and Energy Management Agency (ADEME) has set out the French government’s 20 priority themes to accelerate the ecological and energy transition and to encourage green innovation:
Priority themes
Vehicle of the future
Road vehicles:
- Mobility and logistics
- Electric vehicles and charging infrastructure
- Hybrid and thermal motorization
- Reducing vehicle weight
- Heavy vehicles
Rail and marine:
- Rail transportation
- Vessels of the future
Carbon-free energy and green chemistry
Renewable energy:
- Marine energy
- Solar energy
- Wind energy
- Geothermal
Green chemistry and energy issues:
- Bioresources
- Buildings
- Energy storage
- Hydrogen carrier
- CO2 capture, storage and utilization
- Industrial and agricultural processes
Circular economy
- Industrial ecology and waste
- Site and soil remediation
Smart grids
- Smart grids
Source: French Environment and Energy Management Agency (ADEME)
The vast majority of these sub-sectors align with Canadian priorities and expertise.
At the end of 2015, nearly €37 billion of the Future Investment Programme’s total envelope of €47 billion had been committed, with nearly 2,500 projects funded. The Big Investment Plan to accelerate ecological and energy transition expects to commit €20 billion over the next five years to the following objectives of the legislation on energy transition for green growth:
- Cut greenhouse gas emissions by 40 percent by 2030 and by 75 percent by 2050 (compared with 1990 levels);
- Cut fossil fuel consumption by 30 percent by 2030 (compared with 2012);
- Increase the share of renewable energy to 32 percent of final energy consumption by 2030 (from 12 percent in 2012);
- Reduce the share of nuclear energy to 50 percent of electricity production by 2025 (from 75 percent in 2012).
Although France has several global companies in the vast majority of these sub sectors, there are opportunities for Canadian companies to become one of the many links in the supply chain. To succeed in this market, Canadian companies are advised to participate in specialized trade fairs and conferences—if not as an exhibitor, then at least as a visitor—to make some very useful contacts.
It is also important that Canadian companies adapt to the needs of the market, target their product and service offerings, and cooperate with a local partner that is familiar with the market and has a good network of business contacts in the targeted sector.
Registration deadline: Registration is now closed.