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24/04/2020
Climate Report
Scenario analysis of the issues of the low-carbon transition
From implementation to disclosure by companies in the TCFD framework The transition to a low-carbon economy represents risks and opportunities for companies. Indeed, far-reaching changes are expected in socio-economic systems, with uncertainties about their timing and magnitude, and their economic and financial consequences. In this context, forward-looking methods –in particular scenario analysis – are […]
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23/04/2020
Blog post
Non-Financial Reporting by companies and Scenario Analysis: be cautions with Standardization
A few months ago, the European Commission launched a consultation on the revision of the Non-Financial Reporting Directive. The issue at stake is to strengthen the obligation for 6,000 large companies to communicate publicly on how they deal with major societal issues, such as climate change and low-carbon transition. For Romain Hubert of I4CE, reporting must be strengthened in particular on the scenario analyses that companies conduct to identify the risks and opportunities of the transition. But what exactly should they communicate?
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10/04/2020
Climate Report
Investing in climate can help France drive its economic recovery
Confronted with a health crisis that has caused a global social and economic shock, the European Union and countries around the world are adopting major economic support programs. Following the initial focus that must be on overcoming the health emergency itself, actions that contribute to climate goals can be an effective part of improving both the economy and the resilience of our society. I4CE’s proposal calls for a public finance package of 7 billion euros per year that is estimated to trigger 19 billion euros of additional public and private investment. Altogether, this package would contribute to the economic recovery post-crisis, while simultaneously reinforcing our society against future shocks without reducing France’s contribution to international climate goals.
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01/04/2020
Blog post
Towards a recovery plan? Let’s learn from 2008
The world is confronted with a health crisis that has caused a global social and economic shock – and in the short term we must be focused on responding to this disaster. Nevertheless, it is also important to start preparing now for the aftermath of the COVID-19 pandemic to avoid a deep and lasting economic recession. Around the world, international, national and local stakeholders are starting to draw up recovery plans. Many recognize that actions that contribute to climate goals can be an effective part of improving both the economy and the resilience of our society. We thus have an opportunity to accelerate investments that will be both pro-recovery, as well as contribute to the fight against climate change. However, this will require that we do not repeat the mistakes of the past, as explains I4CE’s Quentin Perrier, who draws parallels from the post-2008 financial crisis recovery plan.
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26/03/2020
Blog post
Forest and climate: in search of local action with no regrets
Many states have set themselves the objective of becoming carbon neutral: their residual emissions will have to be offset by equivalent absorptions by carbon sinks on their territory. Julia Grimault explains the uncertainties surrounding the forest sink and calls for localized and no-regrets actions to act against climate change.
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12/03/2020
Op-ed
Banks’ capital requirements for the climate: Let’s ask the right questions
For several years now, the idea of using capital requirements for environmental purposes has been gaining ground. But before this can happen, however, several questions about such requirements need to be resolved, particularly as regards the instrument to be used and the objective to be achieved. Michel Cardona from I4CE has released this OpEd available on Euractiv
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11/03/2020
Climate Report
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.
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05/03/2020
Blog post
The 2020 Climate Challenge for Development Banks: Aligning with the Paris Agreement
Public development banks have a major role to play in the fight against climate change. Ian Cochran and Alice Pauthier from I4CE explain in this blogpost the principal technical and political challenges those finance institutions will need to overcome in aligning with the Paris Agreement objectives.
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10/01/2020
Blog post
2020: climate should be everybody’s business
For too long climate change has remained confined to the green silos of our public institutions: it was onyl the business of Environment Ministries. The situation seems to have improved over the last ten years, but we are still a long way from “climate mainstreaming”. For Benoit Leguet, Director of I4CE, 2020 will offer multiple opportunities to test commitments, in France and internationally.
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30/12/2019
Climate Report
Domestic carbon standards in Europe
In a general context of higher carbon prices and with a growing interest from companies to finance local emissions reductions projects, several European countries have started developing their own domestic carbon certification standards since the early 2010s. This study provides an overview of existing standards and of the obstacles they must overcome, as well as […]
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04/12/2019
Climate Report
The proposals of 5 think tanks to meet the energy and climate challenge in Europe
Authors: Nicolas Berghmans (IDDRI), Antoine Guillou (Terra Nova), Thomas Pellerin-Carlin (Jacques Delors Institute), Emmanuel Tuchscherer (Fondapol), Charlotte Vailles (I4CE) and Ian Cochran (I4CE) Almost four years after the signing of the Paris Agreement, the European Union (EU) must quickly raise its ambition in the fight against climate change if it wants to maintain its leadership […]
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28/11/2019
Climate Brief
Finance fit for Paris (3fP) – Results and scores for France
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 […]
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28/11/2019
Climate Brief
Key Figures on Climate – France, Europe, Worldwide
On the opening of the 25th Conference of the Parties on Climate Change (COP 25) which is held in Madrid from 2 to 13 December 2019, I4CE-Institute for Climate Economics and the French Ministry of the Ecological and Inclusive Transition are pleased to present the 2020 edition of Key Figures on climate – France, Europe, […]
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28/11/2019
Foreword of the week
COP25 side-event I Aligning with the Paris Agreement: what does it mean for the International Development Finance Club?
Aligning with the Paris Agreement: what does it mean for the International Development Finance Club? International Development Finance Club Pavilion Saturday 7 December, 2-3:30 pm The Paris Agreement has reframed climate action from a focus on the near-term incremental increase of adaptation and mitigation actions to emphasize the importance of the long-term transformation […]
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08/11/2019
Climate Report
Tracking investment into energy transition in Germany and France: a comparison of methodologies and selected results
Since 2012, I4CE has been tracking climate investment and finance in France and similar assessments have been conducted in Germany by IKEM. This study compares the methodologies and results of these two exercises – the most advanced in Europe. The paper allows an initial comparison of investments in the two countries, identifying similarities in priority […]
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07/11/2019
Blog post
Do not measure the impact of the Green Climate Fund- only – by its billions
On 25 October, a conference was held in Paris to “replenish” the resources of the Green Climate Fund. 27 countries have made pledges, for a total amount of nearly $10 billion. Good news? Insufficient? For Alice Pauthier of [i4ce], the impact of the Green Climate Fund should not only be assessed against this figure. The Fund also has a transformational effect, particularly on the many financial institutions that, in order to access its resources, must follow an accreditation process. A process that may well become more and more demanding.
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07/11/2019
Framework for reading transition scenarios – Eight steps to interpret transition scenarios
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07/11/2019
EXECUTIVE SUMMARY – Understanding transition scenarios Eight steps for reading and interpreting these scenarios
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07/11/2019
Climate Report
Understanding transition scenarios – Eight steps for reading and interpreting these scenarios
It therefore brings risks and opportunities for economic actors, which they must anticipate in order to optimise their strategy in a context of uncertainty. Against this backdrop, the use of scenarios – which are plausible representations of uncertain future states – is very useful in order to better understand the medium- and long-term challenges […]
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04/11/2019
Climate Report
Towards an alternative approach in finance to climate risks: taking uncertainties fully into account
It is no easy task to take climate risks – transition risks and physical risks – into account in financial management practices. As this note shows from the example of banking activities, the intrinsic characteristics of these risks – which are long-term and cannot be assigned a probability and for which there are no historical […]