Co-developing climate financing plans at the local level

8 February 2024


Local authorities are essential players in driving the ecological transition, given their responsibilities in key sectors and their weight in public investment. Indeed, they play a key role in accelerating the ecological transition in pivotal sectors like transportation, urban development and energy-efficient building renovation. Achieving carbon neutrality in France will require additional financial supports to directed towards these sectors. According to the study Local authorities: investment and engineering needs for the climate, the required investments for climate transition amount to approximately €12 billion a year, nearly doubling the current expenditure.  


This collective step forward varies across different local authorities. Depending on their respective territory, economic and social dynamics, climate goals and strategy, the investment requirements can vary. Questions arise: How much should each local authority invest to meet its climate objectives? How can this funding be effectively secured and integrated into the local authority’s financial planning?   


According to the study Local authorities: how to finance the acceleration of climate investments, existing financing mechanisms such as debt, “redirection” of funds, local taxation, grants and subsidies) can be used in a variety of ways based on political and financial preferences. The challenge lies in optimizing these levers at the local authority level to successfully implement and finance their climate action plans. 



The objective of this project is to collaboratively develop, in partnership with pilot local authorities, a comprehensive approach aimed at:  


  1. Assessing the costs of achieving climate objectives for a local authority, detailed sector by sector. 

  2. Identifying financial options to bridge the gap and meet the investment demand


This step-by-step approach details how to build a 100% financed program of actions tailored to meet the local authority’s climate objectives. 



A collaborative working group made up of pilot local authorities, at the municipal level, as well as associations of elected representatives (France Urbaine, Intercommunalités de France, Association des Maires et Présidents d’intercommunalités de France) will spearhead this initiative.  


Experts (environmental associations, networks of local authorities, ministries, researchers) will also be involved to enrich the dialogue and provide insights. 



Winter 2024 – Spring 2025

Winter 2024 – Spring 2025
I4CE Contacts
Marion FETET
Marion FETET
Research Fellow – Local authorities, Public Finance, Green Budgeting Email
Senior Research Fellow – Local authorities, Public Finance, Green Budgeting Email
Morgane NICOL
Morgane NICOL
Local authorities Programme director – Local authorities, Adaptation, Public finance Email