Flowerpot of crystal with a plant, growing inside a heap of coins of Euro
2 July 2019

A further step towards greening the financial system

On 2 July 2019, Bruno Le Maire, Minister of Economy and Finance, organised a meeting with representatives from the Paris financial marketplace to launch a new step in its commitment to addressing climate change.
France has been a pioneer in the development of sustainable finance, with COP21 and the adoption of the Paris Agreement in 2015: the adoption from August 2015 of Article 173 of the Energy Transition Act, introducing a transparency framework for taking climate issues into account in their investment strategies and, in December 2017, the One Planet Summit, which led to numerous initiatives in the public and private financial sectors.

Today, the Paris financial marketplace, which includes professional federations, member institutions and public authorities, has announced it is strengthening its commitments with a view to speeding up the transition to an economy that is compatible with international commitments to limit global warming. While some institutions have already made ambitious announcements on this subject, this is, for the first time, a concrete collective commitment by financial actors to address climate change, adding further impetus to this momentum.

This means that by mid-2020 at the latest, actors in the Paris financial marketplace will have adopted a carbon strategy with:
  • a global exit schedule for the financing of coal activities,
  • the marketing, from 2020, of green and inclusive financial products to the general public, within the framework established by the PACTE law,
  • the definition of indicators, within the framework of a new observatory, for reporting on the achievements of financial actors in addressing climate change. Entities will strive to reduce the direct environmental footprint of their day-to-day operations.
As Bruno Le Maire pointed out during Climate Finance Day on 26 November last year, these commitments will only be credible if they lead to an independent review. The ACPR and the AMF, which are responsible for supervising the banking and insurance sectors in France, have therefore simultaneously announced the implementation of a mechanism for monitoring and evaluating the climate change commitments made by financial actors, which will result in the publication of an annual joint report.

The Ministry of Economy and Finance will continue working hard to increase the greening of the financial system. The transparency framework applied by financial entities with respect to the climate will be amended under the Energy and Climate Law, in light of the evaluation which is due to be published this week, and to bring it into line with the new European framework.

Building on work carried out by Patrick de Cambourg, France will put forward some strong proposals at European level concerning the development of a high quality, non-financial reporting procedure.

Bruno Le Maire will include the development of sustainable finance in the agenda of the G7 Finance Ministers meeting in Chantilly on 17 and 18 July.

Finally, the United Nations Climate Action Summit, which will be held in New York in September with the President of the Republic in attendance, will enable further progress to be made at international level.