A new McKinsey and La Fabrique de l'Industrie report reveals stark differences in how France and Germany are tackling industrial emissions. France's industries have higher direct emissions due to a concentration in carbon-intensive sectors, whereas Germany’s lower-emission focus in manufacturing results in comparatively lower direct emissions. However, France's significant reliance on nuclear power leads to much lower carbon intensity in its electricity compared to Germany’s coal-dependent energy.

When combining direct and energy-related emissions, the countries' levels are almost similar. Both nations need to ramp up infrastructure investments and face challenges in managing energy costs and securing a skilled workforce. Global competition, particularly from China, adds pressure on maintaining industrial competitiveness while pursuing emission reductions. Coordinated public policy is essential to navigate these complex issues and achieve effective decarbonization.