Is the decarbonization of the economy a factor in lower productivity?

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Over the past three years in particular, we have seen a downward trend in productivity. Could massive investment in decarbonizing the economy explain part of this phenomenon? 👇🏼

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We were thinking the same thing yesterday as we read about a major investment by Fibre Excellence: €53 million for the installation of a green electricity (bio-waste) turbine at the Tarascon pulp site.

The massive investment will create indirect jobs (at turbine manufacturers, in the waste collection and treatment sector), but no direct jobs, and no increase in production.

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These decarbonization investments are not rare, nor are they limited to France.

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Our global database includes, for example, a €432 million investment by Essar Oil (UK) Limited to capture 40% of the CO² emitted at its Stanlow refinery. In this case, the entire amount invested is devoted to decarbonization. In many cases, the investment is a combination of increased production capacity and decarbonization efforts.

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In concrete terms, all these costly, capital-intensive investments create jobs, but have very little direct effect on production, since they merely reduce externalities.

We need to measure the impact of this trend against the other factors often mentioned (apprenticeships, fear of labour shortages leading to over-hiring, etc.). Observation leads us to believe, particularly through the data we collect in France and worldwide, that this phenomenon is very strong.

On the other hand, if this phenomenon is significant, and to regain productivity in France, we need to invest so that production decarbonization technologies are deployed and implemented by French companies or companies based in France.

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