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Ledez, Maxime; Hainaut, Hadrien
Institute for Climate Economics - I4CE, 30 rue de Fleurus, 75006 Paris (France)2021
Institute for Climate Economics - I4CE, 30 rue de Fleurus, 75006 Paris (France)2021
AbstractAbstract
[en] The Landscape of Climate Finance is a comprehensive study of domestic investments which support climate mitigation in France. This study maps the financial flows supporting investments leading to the reduction of greenhouse gas emissions (GHG) across the French economy. Findings are compared to the historical time series and assessed in comparison to projected investment needs to achieve national greenhouse-gases reduction targets and other energy transition objectives. In that regard, the Landscape contributes to the public debate on the relevance of public and private climate finance Climate investments increased rapidly over the period preceding the coronavirus crisis, reaching 48 billion euros in 2019. Most of these investments took place in the buildings, transportation, and energy production sectors. Energy efficiency mobilised 40% of total investments. Climate investment increased because more equipment and devices were installed, despite extra costs in some large projects. The share of GDP dedicated to climate investment increased from 1.7% to 2.4% between 2011 and 2019. Public authorities contributed to this growth. Climate investments by the State, local authorities, public infrastructure management companies and social housing authorities increased by 57% since 2011. However, the challenge for public authorities is not only to invest in their own equipment, but also to create an enabling framework for private investments to take place. In this regard, the amount of public co-financing for households and business projects increased by 76%, leading to more private investment, but the leverage effect (the amount of private investment per euro of public funding) did not improve. Besides, more legal obligations have been introduced, but they do not always trigger investments. Fossil investments increased again in 2019 and reached a record level of 71 billion euros, which represents a 70% increase compared to 2014. Most of these investments go to equipment consuming fossil fuels: passenger cars alone account for almost two thirds of the total. Fossil investments delay the reduction of GHG emissions, public authorities can use fiscal and regulatory means to reduce them
Original Title
Panorama des financements climat - Edition 2020
Primary Subject
Secondary Subject
Source
Mar 2021; 44 p; 51 refs.; Available from the INIS Liaison Officer for France, see the INIS website for current contact and E-mail addresses
Record Type
Miscellaneous
Report Number
Country of publication
AIR POLLUTION ABATEMENT, BIOFUELS, ELECTRIC-POWERED VEHICLES, ENERGY EFFICIENCY, ENERGY SOURCE DEVELOPMENT, ENVIRONMENTAL POLICY, FINANCIAL INCENTIVES, FINANCING, GREENHOUSE EFFECT, HYDROGEN PRODUCTION, INVESTMENT, NATIONAL ENERGY PLANS, NUCLEAR ENERGY, RENEWABLE ENERGY SOURCES, RETROFITTING, SECTORAL ANALYSIS, TRANSPORTATION SECTOR
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