Green Fund: cold shower for financing the ecological transition

After an initial deletion of €430 million in payment credits a few days ago, a freezing of an additional €430 million would be considered by the Government[1]. If this hypothesis were confirmed, the initial ambition of the Green Fund would be totally compromised.

However, local authorities are the primary actors in the ecological transition. As highlighted in a recent I4CE study[2], the latter should make at least 12 billion euros of investments each year, from 2021 to 2030, to achieve the objectives of the SNBC, i.e. a doubling of their climate investments current, estimated at around 5,5 billion euros per year, which could have been financed, in part, thanks to the Green Fund.

If these budget cuts are confirmed, there will be €1 billion less investment from the State to finance the ecological transition between 2023 and 2024 (the CP would total €565 million compared to €1,625 billion initially planned). Taking into account the fact that when the State invests €1 for the Green Fund, communities invest on average €3, a total of €4 billion of investment over two years risks being prevented.

For Alain Grizaud, President of the FNTP: “Faced with the ecological emergency, these budgetary cuts are incomprehensible! We must absolutely protect the financing of the ecological transition from budgetary uncertainties. Infrastructure projects require planning and financial stability. If the Government continues like this, we will definitely go straight into the wall! »

[1] Source Context

[2] https://www.i4ce.org/publication/collectivites-investissements-ingenierie-neutralite-carbone-climat/