France spearheads climate regulation for business
Paris Climate Conference/Lima-Paris Action Agenda – Communiqué issued by the Ministry of Ecology, Sustainable Development and Energy
Paris, 18 December 2015
Ségolène Royal, Minister of Ecology, Sustainable Development and Energy, Michel Sapin, Minister of Finance and Public Accounts, and Marisol Touraine, Minister of Social Affairs, Health and Women’s Rights, today signed the decree establishing compulsory climate actions for businesses and institutional investors.
This decree makes France the first country to equip itself with ambitious regulation in terms of financial action for the climate, as emphasized on the business action days at COP21. The French presidency will promote this concrete action in 2016 in the Lima-Paris Action Agenda.
The decree, issued in accordance with Article 173 of the law on energy transition for green growth, will make it possible for investors to play a more active role in the transition to a low-carbon economy.
The decree, which will apply from the 2016 financial year onwards, will lead investors to:
• improve the information they provide on the greenhouse gas emissions in their portfolios,
• define the green section of their investments,
• establish a low-carbon strategy for contributing to climate goals.
The text also provides for measures to improve practice in view of feedback from the first years. Several large French businesses (including Engie) have said they will already apply the rules to their 2015 accounts.
The decree has received the approval of the High Council on Mutual Insurance and the Advisory Committee on Financial Legislation and Regulation./.