Mainstreaming Climate Change in the Financial Sector and its Governance – Part I: A Necessary and Timely Evolution

The upcoming food sovereignty conferences are likely to shape debates on the future of French agriculture in 2026. The main responses provided over the past two years can be summarised as follows: remove production constraints to produce more of everything (both animal and plant products), to recover market shares in France and abroad. Seeking to produce more of everything without considering adaptation or transition is a form of denial, at a time when climate change is hitting farmers hard and regularly, and when our dependence on imported fertilisers and oilseed meals undermines our sovereignty. The conferences must take these considerations into account — otherwise, they will serve only to perpetuate the notion of an illusory sovereignty. 

In a challenging economic and political context, especially for the agriculture sector, some incentive schemes can still help bring stakeholders together in climate transition and resilience initiatives. This is the case with carbon certification schemes, which both ensure the credibility of the climate impact of the actions implemented and provide remuneration for farmers and foresters for changes in practices. Some of these measures, such as replacing mineral fertilisers (mostly imported) with organic fertilisers, also help to meet the sector’s needs for resilience and strategic independence, which are crucial in the current context.

The implementation of carbon farming practices on European farms and in European forests is a lever for achieving carbon neutrality, but also for farm resilience, the adaptation of forest stands to climate change and for contributing to our strategic independence. Certifying and financing low-carbon practices is the objective of the CRCF (Carbon Removals and Carbon Farming) regulation, which will come into effect in 2026. Now seems the right time to draw lessons from six years of experience with a similar standard in France: the “Label Bas-Carbone” (Low Carbon Label – LBC). The results show that striking a balance between scientific rigour and accessibility for stakeholders has led to the development of a substantial range of projects. However, the real challenge is to build sufficient and appropriate demand to finance the projects. There is no miracle solution, but complementary financing channels may emerge.