Climate financing scenarios in France
Context
Leading the energy transition requires 58 billion euros of additional investment per year over the period 2024-2030. These investments are needed to renovate housing, electrify the vehicle fleet, maintain and develop transport infrastructure, build wind and solar farms, and renew nuclear power.
How can climate investments be financed? Under what conditions can households, businesses and public operators take them onundertake such projects ? And Hhow much funding will be borne by the State, local authorities or Europe, depending on the most appropriate scale? How can we take advantage of financial instruments to accelerate investment at lower cost? And how can efforts be distributed fairly between taxpayers, consumers and savers?
To answer these questions, I4CE covers a wide range of sectors using economic simulations and a forward-looking methods. The simulations, based on the findings of the the Landscape of climate finance in France, enable us to grasp the financial orders of magnitude. And to clarify the main options, the project draws up contrasting scenarios.
The main questions in this project are:
- How much should public authorities spend on climate protection?
- How can we mobilize private financing (households, businesses)?
- How can climate financing instruments be improved?
- What contribution can the financial sector (banks, markets) make?
- What public policies can improve the financing of the transition?
- How can financing efforts be shared out fairly?
This project contributes to the annual results of the Landscape of climate finance in France as well as to specific publications.
Partners
The French Agency for Ecological Transition (ADEME) and the Ministry of Ecological Transition are supporting this project.
