France’s Global Leadership Role in Climate Finance Reform

One of the most impactful climate policies enacted by France in 2023 might not be the policy that reduces the most emissions: France did enact climate policies and programs in 2023, which reduced emissions, such as a plan unveiled in May to accelerate cuts to its greenhouse gas emissions, targeting a reduction of 50% by 2030 compared with 1990 levels. What could be considered the most impactful climate policy of the year in France, however, was France’s leadership in calling for climate finance reform and the amount of climate finance it provided for the countries most vulnerable to climate change.

In June 2023, President Emmanuel Macron convened representatives of over a hundred countries, including forty heads of state and government, representatives of international organisations and financial institutions, civil society and academics, as well as companies and private investors, at the Summit for a New Global Financial Pact in Paris. The Summit aimed to lay the foundations for a renewed international financial system so that no country has to choose between reducing poverty, combating climate change, and preserving biodiversity.  The summit produced a Paris Pact for People and the Planet or a road map for reforming the international financial system proposed by President Macron and now endorsed by over 40 States. The Summit was a first step and generated new political momentum to raise greater financial resources, adapt the international financial architecture to the needs of the 21st century, and lighten the immediate fiscal burden for the most vulnerable countries. It helped prepare a consensus among partners for further action and financial commitments made at COP28 in the United Arab Emirates.

During COP28 on 6 December 2023, France announced its support for the countries most vulnerable to climate change with a €173 million financial package.

This financial package comprises:

  • A contribution to the new Loss and Damage Fund, which could go up to €100 million depending on how vulnerable countries are targeted,
  • A new tranche of €20 million to the Global Shield against Climate Risks, in which France already invested €20 million in 2023,
  • a contribution of €35 million to the Least Developed Countries Fund,
  • a doubling to €10 million of France’s contribution to the Adaptation Fund for 2024,
  • the renewal of an annual €8 million for the CREWS programme (Climate Risks and Early Warning Systems). France has also provided financial support for the activities of the UN Secretary-General’s Early Warnings for All programme.

These investments underscore France’s development policy of focusing resources on the most vulnerable countries. France is one of the main providers of climate finance, with a strong emphasis on climate change adaptation projects, predominantly in the poorest countries. For example, in 2022, France provided €7.6 billion of climate finance to developing countries, €2.6 billion of it for adaptation following President Macron’s pledge in 2020 to devote €6 billion a year to climate finance, at least one-third of it for adaptation. France and the European Union were driving forces at COP27 to find consensus on the response to loss and damage. These latest financial commitments and global leadership in climate finance reform concentrate solidarity efforts on those countries that most need it. Ultimately, reducing global emissions and climate adaptation efforts will require coordinated action and can only be achieved through international solidarity.

This Post was submitted by the Climate Scorecard France Country Manager, Liana Mehring.

Works Cited

AFP, Le Monde with. “France Presents New, More Ambitious Emissions-Cutting Plan.” Le Monde.Fr, 22 May 2023, www.lemonde.fr/en/environment/article/2023/05/22/france-presents-new-more-ambitious-emissions-cutting-plan_6027602_114.html.

“Summit on a New Global Financing Pact.” Elysee.Fr, 22 June 2023, www.elysee.fr/en/emmanuel-macron/summit-on-a-new-global-financing-pact.

Ministère de l’Europe et des Affaires étrangères. “France Consolidates Its Support for the Countries Most Vulnerable to Climate Change and Announces a €173-Million Financial Package at COP28 (06.12.23).” France Diplomacy – Ministry for Europe and Foreign Affairs, www.diplomatie.gouv.fr/en/french-foreign-policy/climate-and-environment/news/article/france-consolidates-its-support-for-the-countries-most-vulnerable-to-climate. Accessed 14 Dec. 2023.

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