[en] Since the first study published in 2005 by the Climate Mission of Caisse des Depots, the number of carbon investment funds initiated in 1999 by the World Bank with the Prototype Carbon Fund (PCF) has multiplied: 58 investment funds have a total capitalization estimated at 7 billion euros. The last two years have been marked by changes in investment strategies and approaches. The number of funds targeting financial capital gains has grown more than those aiming to provide CO₂ credits for compliance. Investors are now getting involved early in the project development process, exposing themselves to higher risks in order to achieve greater profitability. However, demand for projects is likely to exceed supply, since only 50% of the capital raised is actually invested. Carbon funds play an important role on the international market: they finance a quarter of certified emission reduction units and a third of Carbon Emissions Reduction Units, and could contribute to the reduction of 700 million tons of CO₂ equivalent. Awaiting the negotiation of a post-Kyoto agreement, the future of the carbon market is uncertain. A third of funds have announced that they will invest in post-2012 credits, but the amounts invested remain low. In October 2007, the European Investment Bank launched the first fund entirely dedicated to post-2012: some players remain confident in the future of carbon finance

[en] In France, agriculture is the third largest emitter of greenhouse gases (GHG), behind transport and manufacturing industry. In 2003, the French agricultural sector emitted 107.9 million tons of CO₂ equivalent (MteqCO₂), i.e. around a fifth of French GHG emissions, excluding 'carbon sinks'. Despite the sector's strong technical potential for reduction, it has achieved little reduction in GHG emissions since 1990, unlike other sectors such as manufacturing. This suggests the need for incentives to reduce emissions. The profile of agricultural emissions sources, which are diffuse and emit a majority of GHGs other than CO₂, makes it unlikely that the sector will be included in the European quota system. Other mechanisms must therefore be devised to enable emissions reductions in the agricultural sector to be valorized. Among the systems that could be envisaged, the project mechanisms set up in other countries suggest that we should consider setting up 'domestic projects' in France

[en] Among the publications of CDC Climat Research, 'Tendances Carbone' bulletin specifically studies the developments of the European market for CO_2 allowances. Beside some statistical figures about energy production/consumption and carbon markets, this issue specifically addresses the following points: - Verified CO_2 emissions: in 2013, emissions of EU ETS stationary installations, estimated to 1,895 Mt CO_2, have decreased by at least 3% in comparison of 2012. - State aids for 2020 climate targets: the EU Commission has adopted new guidelines on public support for projects in the field of environmental protection and energy that notably promote a gradual move to market-based support for renewable energy. - Carbon leakage: the EU Commission has sent its draft proposal for a 2015-2019 carbon leakage list to the EU Climate Change Committee and has launched a public consultation on possible post-2020 carbon leakage provisions

[en] Among the publications of CDC Climat Research, 'Tendances Carbone' bulletin specifically studies the developments of the European market for CO₂ allowances. This issue addresses the following points: - Back-loading was rejected by the European Parliament on 16 April and referred to the Parliament's ENVI Commission. A new plenary session vote has been scheduled for early July. - Structural reforms: discussion at the Parliament ENVI Commission at the end of June. - The EU-ETS is a 'zombie' policy, because the EU's climate policy lacks ambition. - If we want the EU ETS to remain the flagship for the transition towards a low-carbon economy, we must restore economic players' confidence in Europe's long-term climate goals

[en] Internationally set objectives in the fight against climate change cannot be reached without funding from the private sector. Public money, a scarce resource, must be used as best possible, in particular when it has a leverage effect on private funding. In this respect, feedback from the Kyoto Protocol's clean development mechanism is of interest. On the eve of the 2015 Paris Climate Conference, we must ramp up the mobilization of private resources. Smart unconventional monetary (SUMO) policies could help us toward this goal. Several countries have adopted such policies to cope with macro-economic circumstances or systemic risks. Is the destabilization of the climate not a risk of this sort?

[en] I4CE - the Institute for Climate Economics is an initiative of the Caisse des Depots, which continues to support it, and the Agence Francaise de Developpement, which has joined this project, giving the Institute a strong international dimension. The two major French public financial institutions are thus joining forces to create a real think tank, open to other partnerships. From the outset, I4CE benefits from the expertise and reputation which CDC Climat Research has acquired over ten years through its publicly available research, its discussions with public and private decision makers, and its research partnerships with other teams in France, Europe and around the world. I4CE aims at strengthening this independent economic expertise and increasing its influence. The creation of I4CE in 2015 is a step towards creating an agenda of solutions for the climate. I4CE hopes that its work will feed into efforts by France and international negotiators to reach an agreement in Paris in December 2015. However, I4CE has long believed that the transition towards a 'de-carbonised' economy which is resilient to climate change does not depend solely upon work by governments. I4CE believes that three other categories of stakeholders are just as essential for ensuring that this change is successful: - the industrial sector, and the energy sector in particular, the speed of transformation of which will depend greatly upon the inclusion of a carbon price in its model; - the finance sector which now must incorporate the 2 deg. C objective into the way in which it allocates capital; - regional stakeholders which decide on the future of cities, agriculture and forestry. I4CE has developed and organised its research programme for the coming years around these three areas, with the aim of providing its partners with the keys to understanding and decision making, acting as a meeting point for the best academic work and the constraints of political and economic action. This report gives an overview of I4CE activities and ways of working

[en] Among the publications of CDC Climat Research, 'Tendances Carbone' bulletin specifically studies the developments of the European market for CO₂ allowances. This issue addresses the following points: The Doha Conference in Qatar followed two conferences that yielded relatively significant results, namely Cancun (2010) and Durban (2011). These previous conferences had most notably agreed on a second commitment period for the Kyoto Protocol (KP-CP2), begun a negotiation process aimed at achieving an international post-2020 agreement, as well as furthered progress on the issue of financing. The aim of the Doha Conference was therefore to provide a link between the process drawn up by the Bali Road-map (2007) and the one launched in Durban in 2011, with the aim of arriving at an international post-2020 agreement. In the end, the Doha Conference enabled the definition of the rules of the second period of the Kyoto protocol and provided direction for a global agreement in 2015, but was however unable to give a strong signal on the issue of funding

[en] Among the publications of CDC Climat Research, 'Climate Briefs' presents, in a few pages, hot topics in climate change policy. This issue addresses the following points: - Is the French energy transition compatible with economic growth and a 'competitive' French economy? Our answer is 'yes, with some conditions'. - The French economy is better positioned today for a meaningful energy transition than it has been for over 40 years. At the level of the macro-economy, a steady shift to higher energy prices is now much easier without hurting economic growth than it once was. - A small percentage of energy-intensive sectors may need targeted and temporary assistance with this transition

[en] Among the publications of CDC Climat Research, 'Tendances Carbone' bulletin specifically studies the developments of the European market for CO_2 allowances. Beside some statistical figures about energy production/consumption and carbon markets, this issue specifically addresses the following points: - Upsurge in volumes and fall in prices: Nearly 1.1 billion EUA's were traded, i.e. +23%, whereas the average EUA spot price fell by 6% in March 2014. - 2030 climate and energy package: The EU Council will take stock of progress made at its next meeting in June 2014, based on consultations with Member States. - International credits: The EU Commission should approve all international credit entitlements tables before the end of April for the first compliance of the EU ETS in phase 3

[en] Among the publications of CDC Climat Research, 'Climate Briefs' presents, in a few pages, hot topics in climate change policy. This issue addresses the following points: Medium-term (i.e. pre-2015) demand for credits from the EU ETS and secondary sources of demand appears to be limited to 1.6 billion tCO₂e. The supply of Kyoto credits is relatively predictable, and will cover demand between now and 2013-2014 according to our base-case scenario. Our view is that the demand-supply equilibrium will lead to a de-correlation between the price of Kyoto credits and the EUA price, and may lead to a price for Kyoto credits that is very low, or almost nil. Unless CER and ERU demand-side policies are modified, we do not foresee any rebound in CER and ERU prices beyond the current year