The world of finance gets involved in Climate Finance Day

Green financing flows still weak

Created in 2015, the Climate Chance Association established the first Global Observatory of Non-State Climate Action, which fed into the discussions. Several observations emerged. 

Green financing remains weak, making up less than 1% of investor portfolios, less than 1% of the bond market, and just 15% of syndicated bank loans. According to the authors of the report, these figures are probably underestimated, however, since there are no clearly defined common standards for measuring them.

The report concludes that, as a whole, financial industry players are now aware of the challenges, which is good news. Even so, moving from commitment to action will take time. According to the Climate Finance Day promoters, however, “we need to work faster and harder, because global climate financing needs are estimated at USD 2.5 trillion a year”.

Climate Finance Day, which this year brought together more than 500 participants from 50 countries, aims to raise awareness among financial companies about the fight against global warming. It is also an opportunity each year to take stock of the main achievements in this field and to showcase innovative solutions.

Crédit Agricole is committed to sustainable development

Committed to the fight against global warming, and sponsor of the event, the Crédit Agricole S.A. Group took part in numerous round tables. In his closing remarks following the morning’s debates,Philippe Brassac, Chief Executive Officer of Crédit Agricole, spoke of the importance of the role of financial institutions in the energy transition and sustainable development. More specifically, he expressed his views on three commitments made by the group, to “support all our clients in the transition to a so-called low-carbon economy”, to “integrate environmental, social and governance criteria on a massive scale” and to “invest and promote the financing of large-scale renewable energy projects”. Along the same lines, the Group aims to finance one in every three renewable energy projects in France by 2020.

Stanislas Pottier, Responsible Investment Director at Amundi, spoke on the topic of climate-related investment opportunities. Eric Cochard, Head of Sustainable Development at Crédit Agricole CIB, spoke on the challenges of climate risk management. A brochure presenting CACIB’s expertise and solutions for supporting customers in their energy transition was distributed at the event.

Beyond the general call for greater mobilisation, the commitment made by central banks was notable at this year’s event. In closing, François Villeroy de Galhau, Governor of the Banque de France, said that “the NGFS  interim report, published in October, represents an important milestone. For the first time, this coalition of 21 central bankers and supervisors, all keen to work together, unanimously recognised that climate-related risks – as a source of financial risk – fall within the mandate of central banks."

*NGFS: Network for Greening the Financial System.