French experts propose trillion-euro EU climate finance pact

(Climate Change News, 25 Feb 2019) A group of experts has published a draft treaty for a sweeping European climate finance pact, to inject more than a trillion euros into the fight against global warming.

Addressing a packed launch event in Paris last week, French economist Pierre Larrouturou and climate scientist Jean Jouzel urged European member states to mobilise funds in a similar way to the response to the 2008 financial crisis.

“In every country, a majority of citizens have understood the gravity of the situation,” Larroturou told Le Monde. “Nevertheless, we run into a financial cliff that prevents the ecological transition.”

The climate finance pact proposes two new tools to address global warming and social inequality: a green subsidiary of the European Investment Bank (EIB), to lend to member states, and a fund to disburse grants across Europe, the Mediterranean and Africa.

Under the proposal, the bank subsidiary would provide concessional loans for climate projects to each EU member state worth up to 2% of their GDP. That amounts to €65 billion ($74bn) in Germany’s case or €45bn for France.

A 2017 report by the European Court of Auditors calculated that the bloc would need to invest €1,115bn a year between 2021 and 2030 into the transport, buildings, services, energy and industrial sectors, for the bloc to meet its 2030 climate targets.

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Climate Change News, 25 Feb 2019: French experts propose trillion-euro EU climate finance pact