Co-developing a framework for deploying local climate-aligned financing plans

Context

Local authorities are essential players in driving the ecological transition, given their responsibilities in key sectors and their weight in public investment. Indeed, they play a key role in accelerating the ecological transition in pivotal sectors like transportation, urban development and energy-efficient building renovation. Achieving carbon neutrality in France will require additional financial supports to directed towards these sectors. At local authority level, according to the “Overview of climate financing for French local authorities” study, the investments required for the climate transition amount to approximately €19 billion per year. This represents nearly a doubling of the current financial effort required.

This collective step forward varies across different local authorities. Depending on their respective territory, economic and social dynamics, climate goals and strategy, the investment requirements can vary. Questions arise: How much should each local authority invest to meet its climate objectives? How can this funding be effectively secured and integrated into the local authority’s financial planning?   

According to the study Local authorities: how to finance the acceleration of climate investments, existing financing mechanisms such as debt, “redirection” of funds, local taxation, grants and subsidies) can be used in a variety of ways based on political and financial preferences. The challenge lies in optimizing these levers at the local authority level to successfully implement and finance their climate action plans. 

Objectives

The objective of this project is to collaboratively develop, in partnership with pilot local authorities, a comprehensive approach aimed at:  

1. Assessing the costs of achieving climate objectives for a local authority, detailed sector by sector. 

2. Identifying financial options to bridge the gap and meet the investment demand

This step-by-step approach details how to build a 100% financed program of actions tailored to meet the local authority’s climate objectives. 

Partners 

A working group co-led by I4CE and Bordeaux Métropole has been set up with pilot partner local authorities, primarily from the municipal level, along with associations of local authorities (France Urbaine, Intercommunalités de France, Association des Maires and Présidents d’intercommunalités de France).

This project is funded by the European Union via the Technical Support Instrument, and implemented by Expertise France, in cooperation with the European Commission. This project is produced with the financial assistance of the European Union. The views expressed herein can in no way be taken to reflect the official opinion of the European Union.

Experts (environmental associations, networks of local authorities, ministries, researchers) are also involved.

Calendar

Winter 2024 – Summer 2025