Climate Future Savings Plan (PEAC): A New Investment to Fund the Energy Transition

The Climate Future Savings Plan (PEAC) is an attractive new investment option for people under 21 who want to grow their money while contributing to the energy transition. With a higher rate of return than the Livret A savings account and earnings that are exempt from income tax and social security contributions, the PEAC is an attractive alternative for long-term savings.

Starting July 1, 2024, people under the age of 21 will be able to open a Climate Future Savings Plan (PEAC), a new investment designed to finance low-carbon projects under the Green Industry Act. This savings product, which offers a higher rate of return than the Livret A, allows people to grow their money while contributing to the energy transition.

Features of the PEAC

The PEAC is available only to individuals under the age of 21, and only one plan may be opened per person. The total amount that can be deposited into this savings plan is limited to 22,950 euros. The savings set aside by parents for their children will be locked in for a minimum of five years and until the child reaches the age of majority.

Procedures for Withdrawal and Closure of the PEAC

Provided that the PEAC account was opened before the account holder turned 13, the account holder may withdraw all or part of the savings upon turning 18. However, once the first withdrawal is made, the account holder will no longer be able to make new deposits. The PEAC account will be automatically closed on the account holder’s 30th birthday.

Entities Authorized to Offer the PEAC

A PEAC may be opened with a credit institution, an investment firm, an insurance company governed by the Insurance Code, a mutual insurance company, a union of mutual insurance companies, a pension fund, or a union of pension funds.

A higher rate of return than that of the Livret A

Distributed by traditional life insurance providers (insurers, banks, etc.), the return on the PEAC will depend on their investment strategies. However, Bruno Le Maire, Minister of the Economy and Finance, has stated that the return on this new product will be higher than that of the Livret A, which currently offers a 3% interest rate. Unlike the Livret A, whose return is set by the government, the PEAC’s performance will vary from one product to another depending on investment decisions. Earnings will not be taxable and will not be subject to social security contributions.

The PEAC: A Tool to Support the Energy Transition

The PEAC aims to finance low-carbon projects under the Green Industry Act. This law seeks, for example, to cut the time required to build factories in half and to encourage the deployment of major decarbonization technologies, such as wind power, solar power, heat pumps, batteries, and carbon-free hydrogen.