For FBF, the 2015 United Nations Climate Change Conference (COP21) was a major opportunity to educate the public about the critical role played by banks in financing the energy transition. This effort continued at the 2016 edition of the conference at Marrakech (COP22).
The investment requirements to meet the 2°C goal, estimated at more than USD 53 billion, are important for implementing the Paris Agreement.
To increase climate- friendly investments and reduce their cost, the FBF put together a proposal: "the green supporting factor", a factor that supports the financing of the energy transition based on three items:
? At the regulatory level, prudential treatment that is adapted to financing and investment for the energy transition. This should result in lower requirements with respect to raising capital for financing and investment in such assets.
? The eligibility of assets will be based on Climate Bond Initiative terminology, the French label for the Energy and Ecological Transition (TEEC) or any other recognised certification with the same characteristics.
? All economic stakeholders will be eligible: individuals who purchase an eco-friendly vehicle, SMEs the financing of an eco-friendly buildings by SMEs, the financing of businesses that build infrastructure for solar or wind power production, etc.
The FBF‘s proposal was presented at the European level by the EBF, and was promoted to European and International authorities (European Commission, European Parliament, UN, G20/B20, expert groups, NGOs, etc.). It is also an integral component of the French banks‘ contribution to the "Paris Green and Sustainable Finance Initiative" coordinated by Paris Europlace.