The New World economy. Report addressed to Ms Segolene Royal, Minister of Environment, Sustainable Development and Energy, working group led by Corinne Lepage

The New World economy is an economy at the service of mankind, free of fossil and fissile energies, connected and relocated. Everywhere in the world, energy transition is taking place. France is no exception. We have in front of us living proof that an efficient, long-term economy serving the common good and creating employment is not only possible, but also capable to generate enthusiasm and confidence. A newer economic model becomes possible. Synergies are developing in France along this direction. Though, unfortunately, the tipping point has not yet been reached. Still, we have the capacity and it is our duty to commit ourselves to this new economy. The levers to be put in place are now clearly known: giving priority to health and well-being, acknowledging external factors, promoting intangible assets, innovating at the local level, and properly taking demand into account. It is also about bolstering the transformation of entrepreneur-ship already under way, introducing fairness in the economy by agreeing to address the question of profit distribution. Such revolutions imply that the rules of the game will change in the taxation, financial, legislative, and normative fields as well as in the area of vocational training. A number of reforms are recommended in the report: creation of certificates relating to systems of externality to finance the transition, a circular VAT as well as an incentive VAT for organic products and products of the circular economy, and massive development of complementary currencies, alternative financing and civic funds. The report also points to the necessary simplification of rules applicable to start-ups and small innovative companies, the promotion of Green Deals and the development of experimentation, the abolition of standards which favor entrenched privileges, as well as the support for state actors making innovative choices in terms of procurement in the public sector. We thus call for a Green Business Act that can put together such transformations. In order to accomplish this, it is essential for the economic sectors themselves to have the capacity to transform. This is especially true of the energy sector, for which it is high time to finally adopt the digital revolution, decentralize, and accept prices reflecting true costs and to acknowledge the equality of arms between all the various energy players. The key sector of agriculture has already undertaken a modest transformation, which needs to continue to accelerate. Its future prospects consist of organic farming, the second green revolution into the digital age, enhancing the energy/agriculture partnership and finally, the rise of urban agriculture. Our key assets such as wood, the ocean, overseas territories and materials from the circular economy, should be the foundation for this new economy. More traditional sectors are just beginning their mutation, but they also provide numerous examples of new industrial models that can be replicated elsewhere. New synergies are essential to embark on all these revolutions. The report recommends launching a brand: 'France, the Land of the Future' which, in the footsteps of the success of 'French Tech', would push to shine a light on all the actors of the New World. This brand would be accompanied by the emergence of digital tools which would enhance the synergies between civic actors, entrepreneurial as well as territorial. This would allow them to clearly identify themselves, to pool their efforts and build momentum. Among them, the CEOs of New World companies would occupy a special place. We are proposing the creation of a 'Business Movement for the New Economy', which would bring together already existing models as well as all companies fitting this logic. The purpose of this movement would be an attempt at changing the rules of the game, as well as defending collective and individual interests. An institute for the transition could foster knowledge sharing, and provide assistance and conflict resolution between Old and New World actors. Finally, the creation of a compensation fund - with funds entered into an escrow account for a duration of thirty years, in exchange for a taxation based on the existing forest model - would allow the funding of investments deemed unprofitable over the short-term, but essential for the long term. This is particularly true in the case of adapting to climate change. These creations can to a great extent be the work of civil society. Entrance into the New World is indeed of concern to all: experience shows that citizens, businesses and local authorities are much more active and efficient than the State could be in this metamorphosis. This is the reason why the report proposes an action plan for stakeholders (citizens, businesses, media and local authorities), with particular emphasis on the active role of the regions. The Master Plan which was launched in the Nord-Pas-de-Calais region to achieve energy autonomy there should be generalized, as well as should the creation at the regional level of appropriate financial tools and local share-holding; renewed support for very small and small businesses, particularly through clusters, also needs to take place. The State, meanwhile, is at a crossroads. At the very least it could choose - before being forced to by a world in transformation -, to cease to be an obstacle on the path towards the New World. But it could also choose to become the driver by proposing a real strategy for implementing the New World, by changing and adapting the institutions of the Republic, and by changing the rules of the game by using the resources of the State as a shareholder. COP21 offers France a unique and historic opportunity to have a change of heart, and to take up the mantle of a European and World leader in the construction of the New World. In doing so, the State could again allow the French people to dream of new possibilities