Publications

Local authorities play a leading role in ecological planning. As major contributors to public investment they have core responsibilities that can significantly accelerate the transition, such as expanding public transport networks or retrofitting public buildings for energy efficiency. According to I4CE, in France, local authorities in France need to double their investments in decarbonization by 2030 -without even accounting for future adaptation costs.

We are witnessing a withdrawal of commitments to climate action. In the US, President Donald Trump does not hide his hostility to what he calls the ‘climate hoax’. In Europe and in France, new narratives around competitiveness, strategic autonomy and security are gaining ground, reflecting a new political reality. If there is still a broad consensus on the long-term objective of climate neutrality, how to get there is increasingly challenged, generating uncertainty. The scarcity of fiscal resources impacts the willingness to embark on the green transition.

On his first day in office, Prime Minister Mark Carney announced the elimination of the consumer carbon tax, in response to political pressures rather than evidence-based concerns about its effectiveness or impact on affordability. The tax had played a crucial role in reducing the country’s GHG emissions, and along with other carbon pricing policies, was expected to contribute nearly half of Canada’s emissions reductions by 2030. Additionally, the majority of revenues collected were redistributed to citizens, protecting vulnerable households. Thus, without alternative policies to compensate, eliminating the tax could slow emissions reductions and increase inflationary pressure, particularly for low- and middle-income families who benefited financially from the Canada Carbon Rebate funded by the tax. 

The President of the European Commission, Ursula von der Leyen, has committed to presenting a European Climate Adaptation Plan in 2026. The European Commission has previously emphasised public budgets as the main source of coverage for climate-related disasters. But if both the EU’s and member states’ budgets are strained by competing investment priorities and high debt levels in some cases, what are the complementary avenues for financing adaptation in the EU? How can private financial actors, such as banks, insurance companies or asset management firms, support adaptation efforts, not only to ensure resilience (i.e. recovery) from climate disasters, but also to prevent impacts before they arrive?

This week, the EU launched the policy package that will define its new mandate – the Clean Industrial Deal. Pitched as “a transformational business plan” linking Europe’s climate and competitiveness goals, the Deal is Europe’s answer to the alarm raised by the Draghi report last year.

In the face of geopolitical shifts, not least those driven by the second Trump administration, the EU needs to secure its own green industrial base and foster new alliances. The European Commission’ proposal for a Clean Industrial Deal, central to its new competitiveness agenda, needs to spell out how Europe will create the enabling conditions […]

Next week, representatives of public development banks and their stakeholders will gather in Cape Town for the 5th Finance in Common Summit (FiCS), to discuss how public development banks can align all their activities with the Sustainable Development Goals, the Paris Agreement, and the Global Biodiversity Framework. As the global network of public development banks, Finance in Common represents about 10% of total global development investments each year, which must all align with sustainable development pathways. This year, the discussions at FiCS will take place while South Africa hosts the first meeting of the G20 Finance Ministers and Central Bank Governors, with a focus on solidarity, equality, and sustainability.

While several North American banks exit the voluntary NZBA (Net Zero Banking Alliance), European banks must bolster their climate risk frameworks. The European Banking Authority’s (EBA) recently published guidelines on ESG risk management offer a beacon of hope amidst the turmoil that currently surrounds the EU’s sustainable finance regulations. These guidelines are encouraging in both substance and form, reflecting prudential supervisors’ commitment to aligning the banking sector with the bloc’s climate and sustainability goals.

As Donald Trump kicks off another presidential mandate in the US, there is no turning away from the EU’s major challenges of competitiveness, energy security and decarbonising the economy. With a new European Commission in place since December 2024, the roll out of initiatives addressing those challenges can begin. Whilst a lot of focus goes […]

2025 begins with a new French government and a new budget debate, but with the same challenge as last year: how to reduce the deficit without putting the brakes on investment in the climate transition? Climate investments are the best investments we can make, according to the new Minister of Economy Éric Lombard. He's right: any delay weakens our energy security and our position in the international race for cleantech, not to mention the pace of decarbonisation of our economy.

Translating innovation into world-leading industries is critical, and FP10, the EU’s next flagship R&D funding programme after Horizon Europe concludes, offers a chance to bridge this gap. The Green Deal era saw Europe embrace 'Cleantech 2.0', with record investments and new projects. Yet 2024 has brought a reckoning. Slowing demand in sectors like heat pumps and electric cars, Chinese industrial overcapacity, and attractive subsidies in the US and Canada have left European cleantech struggling to compete. Closures, layoffs, and stalled projects - including the high-profile collapse of Swedish battery maker Northvolt - have shaken the sector. The EU’s Net Zero Industry Act and the upcoming Clean Industrial Deal aim to support cleantech manufacturing, but catching up isn’t enough. To lead globally, the EU must focus on the next wave, including new battery chemistries and next-gen renewables - 'Cleantech 3.0.'

The COP29 in Baku was supposed to breathe new life into North-South climate cooperation through the negotiation of the new NCQG financing target. Instead, confrontational negotiations produced a half-hearted agreement, and the onerous task of charting a path to bridge the resource gap before the next COP.

To tackle the challenges of competitiveness and well-being of future generations, Europe needs to accelerate the climate transition. This will require sizable investment, both public and private. National governments must thus embrace and the EU must facilitate investments in climate transition. As the next European Commission prepares to take office, the challenges facing the College are stark. The recent report by Mario Draghi makes clear that there is an urgent need to invest in European competitiveness and innovation, while accelerating the decarbonization of the continent's economy, to avoid a “slow agony of decline” for the block.

This coming Monday will see the start of COP29 – formally the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC), in Baku, Azerbaijan. The edition is nicknamed “the finance COP” and is important on more than one account, not least as Trump's victory likely leads to a change of course for the US on climate commitment. The volume and structure of the finance mobilised to support developing countries to transition to low-emission and climate-resilient economies tops the agenda.

The implementation of the new banking package (or Capital Requirements Directive package) that adopts the final parts of the international Basel 3 financial regulation is underway in the European Union. The European Banking Authority (EBA) along with the other European Supervisory Authorities (ESAs) is mandated to develop technical standards that provide the framework to help financial institutions comply with the new regulatory rules. Key among these standards is the novel guidance on ESG risks which is expected to be finalised by the EBA in the coming months. This is an opportune moment to address weaknesses in banks’ risk management practices, particularly regarding the underestimation of stranded asset risks, a missing angle in current policy debates.  

The European Commission is due to deliver a Vision for Agriculture and Food, within the first 100 days of its new mandate. Feeding into this work, the Strategic Dialogue on the Future of Agriculture (SDFA) published its report “A shared prospect for farming and food in Europe" in September. The spending under the Common Agriculture Policy (CAP) and its alignment with the climate goals agreed at the EU level will be central to the next steps.  

The Members of the European Parliament (MEPs) will audition the European Commissioner-designates in early November. The hearings are a crucial moment to seek commitment from the EU’s next executive team on the priorities for the coming five years and how they will delivered – including on the urgent issue of investment in the climate transition.

Europe’s local authorities have a crucial role to play in meeting the EU’s objective for climate neutrality in 2050 and the critical milestones for emission reductions in 2030. They manage important building stocks and transport networks, develop climate strategies, action and investment plans, while engaging stakeholders and citizens in the climate transition. Turning climate policy ambition into reality, local authorities are responsible for implementing a lot of EU’s Green Deal legislative measures. The EU’s high-profile Mission for 100 Climate Neutral and Smart Cities by 2030 recognises this central role with a pledge for leading cities to trace a fast track towards a climate neutral urban future for others to follow. 

As we return from the summer break, we begin this new European Union mandate with a sharp sense of urgency. Mario Draghi’s report on European competitiveness has sounded the alarm – the EU’s economic health is deteriorating, and immediate intervention is needed to prevent a ‘slow agony.’ Indeed, the EU suffers from a range of critical conditions – challenges which the newly-announced College of Commissioners-elect, will need to speak to in the Hearings to come. A fragmented Single Market is restricting growth, international competition weakens key industries, and decarbonisation efforts are lagging, as highlighted by the European Climate Neutrality Observatory. These issues demand a swift response. 

Climate adaptation, preparedness and solidarity features prominently in the Political Guidelines for the new EU mandate, unveiled by Commission President Ursula von der Leyen in July. And with good reason: infrastructures, access to water, food production, life in European cities - to name but a few - are increasingly impacted by the effects of climate change. Europe urgently needs to prepare better for the impact of climate change, was the message in the European Climate Risk Assessment published by the European Environment Agency earlier this year.