Finance fit for Paris (3fP) – Results and scores for France

28 November 2019 - Climate Brief - By : Michel CARDONA

The global community needs to transform the world economy to become low-carbon and climate resilient. This is the commitment made by the international community in the Paris Climate Agreement. However, humanity needs to find a way to finance this goal. The European Commission estimates that a funding gap of at least EUR 180bn p.a. exist in the EU to achieve its 2030 climate targets.
Green finance is emerging to close this funding gap. The European Union as well as its member states are changing financial market regulation, developing methodologies and restructuring the financial system in this process. This paper highlights key regulatory developments in Europe and provides ideas for further development of climate change aligned financial market regulation and is based on the assessment of the finance fit for Paris Tracker (3fP-Tracker).
The 3fP-Tracker assessment was conducted by  the Frankfurt school, I4CE and its partners for EU-level regulation, France, The Netherlands, Italy, Germany and Spain.

Two papers summarize this evaluation and can be downloaded below: a synthesis paper on financial regulation in Europe, which highlights the main regulatory developments and proposes ideas for the future; and a synthesis paper on the evaluation results for France.

Results and scores for France:

France was amongst the first to integrate climate consideration in its financial market regulation. With Article 173 of the French Energy Transition Law, France set a new global benchmark in 2015 and developed public green labels. Public bodies have taken up climate considerations as well, e.g. Banque de France has published the climate exposure of its own portfolios, sovereign Green bonds have been issued and the government provides a clear transition pathway within a Strategic plan. Highlights of the current update of country assessment include

  • The financial market supervisor (AMF) has enhanced its supervisory activities to ensure a better quality of information provided by investment funds on their ISR policy. Banque de France and ACPR are actively engaged in the NGFS. A review of the industry climate exposure and practises has been conducted. They are working with external experts and the financial industry to integrate climate risks in future stress tests as well in governance.
  • In July 2019, the Ministry of Finance has put in place a framework to track the commitments taken by French financial actors in the past few years, in particular regarding divestment of fossil activities. Subsequently the AMF and the ACPR launched a Climate and Sustainable Finance Commission each, with professionals and independent experts to track commitments.
  • In France, all development banks and public agencies provide climate change related finance. A “one stop shop” platform called France Transition Ecologique was launched in May 2019, to create an overview of all green financial services under one platform and facilitate the access of corporates to those.

 

Finance fit for Paris (3fP) – Results and scores for France pdf
See appendices
  • Summary paper of the 3fP-Tracker assessment download
I4CE Contacts
Michel CARDONA
Michel CARDONA
Associate Expert - Financial Sector, Risks and Climate Change Email
To learn more
  • 07/10/2020 Blog post
    The European Commission’s next challenges for sustainable finance

    To accelerate and deepen this work, the new European Commission will adopt a renewed Sustainable Finance Strategy.  As the public consultation to define the future directions of this strategy draws to a close, Julie Evain from I4CE points out three challenges to be met in order to integrate climate issues into the financial sector.

  • 03/11/2020
    Integrating Climate-related Risks into Banks’ Capital Requirements

    Climate change dynamics are on a trajectory of intensification which may require the use of new and notable measures. The Paris Agreement recognized the urgency of directing financial flows toward low carbon activities and climate-resilient development. However, the latest special Intergovernmental Panel on Climate Change (IPCC) report 1 stated that to limit global warming to 1.5oC, the financial resources directed to green activities are by far insufficient and investments on carbon intensive projects are still far too high. At the same time, climate-related risks continue to potentially endanger the stability of the financial sector and they are only marginally addressed by Basel III capital requirements.

  • 03/04/2019 Blog post
    What is the One Planet Lab?

    The One Planet Lab meets for the first time on Monday, March 4, in Paris. But what is this Lab? I4CE, which together with IDDRI is in charge of the scientific secretariat of the Lab, provides some basic answers.

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