Publications Europe

Climate investment: the French receipe

13 October 2023 - Foreword of the week - By : Ciarán HUMPHREYS

Climate action is a rich stew with many ingredients. From transport to agriculture, construction to forestry, every part supports the whole. The stew would be incomplete without one crucial but rare addition: public investment. Chefs d’état in Paris and Brussels are currently scratching their heads on how best to add this ingredient to the pot. Two hurdles face them: how to invest enough, and how to guarantee that investment over the long term.  In this newsletter, we have translated some of I4CE‘s analysis to better understand what’s going on in the French kitchen, complemented with a dash of a European cleantech investment plan.

 

The French recipe is tackling the question of scale with its latest draft budget, which sees an unprecedented commitment of an additional €7bn for climate investment in 2024. Yet beyond 2024, with the need for investment only increasing, the picture becomes more unclear. Will the benefits be felt at every level of society, and will the government be able to finance this investment in the long term? A sprinkle of long-term perspective is the missing seasoning – which the government’s proposed multiannual investment plan may be able to successfully provide.

 

At the EU level, the stew takes a little longer to bring to the boil. Long-term planning is assured – in the seven-year EU Budget or in multi-annual programs, of which the newly-announced Strategic Technologies for Europe Platform (STEP) is one. STEP, however, is simply not large enough, with €10bn of fresh investment spread over 4 years and 27 Member States. The European offer could do with some beefing up. President Macron has called for years for a truly European response. Supporting EU initiatives such as STEP offers an opportunity to translate French ambition into European action. With a little creativity in the kitchen, there’s a chance everyone can go home satisfied.   

 

Read the newsletter

To learn more
  • 06/13/2025 Foreword of the week
    The unlocked potential of carbon revenues to help fill the climate finance gap

    Climate negotiations are taking place next week in Bonn, with finance once again high on the agenda. COP 29 ended last year with a New Collective Quantified Goal (NCQG) –revised climate finance target to replace the USD 100 billion goal. The NCQG decision put forward a commitment by developed countries to lead in providing USD 300 billion per year by 2035 for developing countries, as well as a proposal to work on a roadmap to scale up climate finance for developing countries to reach a level closer to the estimated needs –the ‘Baku to Belem Roadmap to 1.3T’ (USD 1.3 trillion). The latter must be delivered at the end of the year at COP 30, and strong efforts are being put in the task by the Brazilian Presidency.

  • 06/11/2025
    Global carbon accounts 2025

    This 2025 edition of the Global Carbon Accounts presents a landscape of carbon pricing instruments through the lens of their current and potential contribution to scale up climate and development finance. Several jurisdictions are already using carbon revenues to support a range of policy objectives, including decarbonization efforts and support for economic actors most affected by the transition. Yet there is still potential for them to further contribute to fill the gap.

  • 06/06/2025 Foreword of the week
    Halfway to 2030, the EU needs a climate investment boost

    In a challenging geo-political context, Europe has a window of opportunity to lead on both climate action and industrial competitiveness. As Mario Draghi highlighted in his report last year, this can only happen if decarbonisation ambitions are backed by real investment – and there is an urgent need to boost those investment. The European Commission followed suit and pledged to be an “Investment Commission,” while reaffirming its commitment to implement the 2030 emission reduction targets and to stay to course on the longer-term targets.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !
Fermer