Backtracking on green energy contracts would be a mistake, warns Engie boss

Catherine MacGregor, the CEO of French energy company Engie, cautioned against governments backtracking on their energy policies and decarbonization targets. During a summit in Paris, she emphasized that a lack of trust is a deterrent for investors. In France's 2027 budget proposal, Prime Minister Sébastien Lecornu suggested abandoning several renewable energy contracts, citing the financial strain they place on the state.

MacGregor firmly stated that "a contract is a contract" and underscored the importance of trust for investors to commit to long-term energy projects. France's fiscal situation is a pressing political matter amid preparations for the upcoming presidential election. Prime Minister Lecornu's minority government has been seeking cost-cutting measures to address a budget deficit projected at 5.4% of the country's GDP.

At the EU level, Ursula von der Leyen's tenure as European Commission head has been marked by controversy over the bloc's green policies, such as the ban on combustion engine vehicles by 2035 and its emissions trading scheme. However, MacGregor argued that Europe's commitment to decarbonization provides investors with a stable framework for planning.

"Europe has one advantage: It moves slowly and that offers a certain level of stability which is very interesting for investors," she noted. MacGregor also defended renewable energy projects, asserting that when executed well and on a large scale, they can be competitive, particularly given the current high gas prices. "Renewable projects, when we do them well, in an organized manner and at scale … we are able to be competitive," she affirmed.