How do we build a low carbon economy that is resilient to climate change? Positioned at the heart of this issue, the financial sector is making a commitment to align its activities with a global warming trajectory of less than 2°C, which means achieving net-zero emissions by 2050, consistent with the targets of the Paris Agreement.
Understanding the impact of financial-sector initiatives on the real economy
The Sustainable Finance Observatory seeks to enhance understanding, tracking and evaluation of the financial sector's gradual transformation by observers and stakeholders. The Paris Financial Centre is determined for this project to serve as a model of transparency, and the European Finance Climact project intends to promote similar initiatives in other European and international financial centres.
July 2019, a step forward for sustainable and green finance
During the Financial Centre event held on 2 July 2019 in the presence of Bruno Le Maire, France's Minister of the Economy and Finance, the primary professional bodies and federations representing the Paris Financial Centre announced in a joint declaration that they were undertaking new commitments to support the fight against climate change and contribute to the goal of achieving carbon neutrality by 2050.
An initiative that contributes to Europe's Finance ClimAct project
Headed by ADEME and endowed with a budget of 18 million euros, the Finance ClimAct project aims to develop the new tools, methods and knowledge needed to allow savers to integrate environmental targets in their investment choices on the one hand and, on the other, enable financial institutions and their governing bodies to incorporate climate-related issues in their decision-making processes and to align financial flows with energy and climate objectives. The Sustainable Finance Observatory is supported by Finance for Tomorrow in its capacity as a founding member of the Finance ClimAct project.
For the first edition: two types of information
These will comprise, first of all, the individual public commitments of financial institutions, based on the voluntary declarations of each, and second, aggregated sector data, making it possible to report on the achievements and actions of Paris Financial Centre members in terms of green and sustainable finance. Data and studies will both be examined by an independent scientific and expert committee.