COP21 : Ségolène Royal points to the importance of the carbon pricing leadership coalition
Today, several Heads of State and Government (China, Germany, Mexico, Canada, Ethiopia), brought together by the President of the French Republic, committed to setting up carbon pricing. Ségolène Royal pointed out that “the Heads of State’s commitment is a very important step towards a widespread use of carbon pricing”.
This approach is supported by many companies that already incorporate a carbon price into their investment decisions. It is an essential tool to reduce fossil fuel consumption and boost investment in energy saving and renewable energy.
Furthermore, the Minister of Ecology, Sustainable Development, and Energy also brought up the measures that France has taken to be exemplary in this matter :
• The Energy Transition Act defines a rising trend for carbon price to 56 EUR per tonne in 2020 and 100 EUR per tonne in 2030. This ambitious trend gives visibility to investors. The increase in carbon price in energy taxation is broadly offset by reductions in charges for products, work and revenues that contribute to energy transition. For example, the energy renovation of buildings benefits from a tax credit, reduced VAT, and the interest-free eco-loan.
• France has just published its first national low carbon strategy that emphasizes the importance of using carbon price in all investment decisions and sectoral policies.
• The Energy Transition Act also includes the obligation of institutional investors to account for the exposure of their portfolio to carbon price and climate risks, as well as for their strategy to increase the green share in their portfolio. The implementing decree is for consultation and will be published before the end of COP21.
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