{"id":69026,"date":"2025-04-22T15:03:35","date_gmt":"2025-04-22T13:03:35","guid":{"rendered":"https:\/\/staging.i4ce.org\/anticiper-financement-transition-climat-outil-service-collectivites\/"},"modified":"2025-06-30T15:00:08","modified_gmt":"2025-06-30T13:00:08","slug":"empowering-local-governments-meet-cost-climate-action","status":"publish","type":"post","link":"https:\/\/staging.i4ce.org\/en\/empowering-local-governments-meet-cost-climate-action\/","title":{"rendered":"Empowering local governments to meet the cost of climate action"},"content":{"rendered":"

Across the EU, local authorities play a leading role in the climate transition. They have core responsibilities in the sectors that are central to reducing emissions, including transport and buildings. They are also major contributors to the public investment necessary for achieving carbon neutrality. When local authorities develop their climate transition plans, including for example to expand the public transport networks and retrofit public buildings to increase energy efficiency, they must also plan for significant public investments.\u00a0\u00a0<\/strong><\/p>\n

 <\/p>\n

According to a <\/span> study by I4<\/span>CE<\/strong><\/span><\/a>, local authorities in France need to double their investments in decarbonization by 2030 \u2013 without taking into account future adaptation costs. This significant effort will be critical for achieving carbon neutrality<\/span> in France by 2050.\u00a0<\/span><\/p>\n

 <\/p>\n

With public investment on a tight rope in large parts of Europe, doubling investment for the climate transition is no small challenge. In response to this, I4CE, in collaboration with a group of cities and metropolitan authorities in France, <\/span>have developed<\/span> a new tool for local decision-makers: a method to elaborate a \u201c<\/span>climate-aligned financing plan<\/span><\/a>\u201d tailor-made to their city. But what does that mean in practice?<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Driving local climate action through investment planning<\/b>\u00a0<\/span><\/h2>\n

A climate governance tool: aligning investments with climate objectives<\/span><\/b>\u00a0<\/span><\/h3>\n

Any local authority that has adopted a climate strategy has also set local emission reduction targets. Achieving these quantitative targets, requires matching them with financial resources and embedding them in a clear, long-term investment trajectory. Integrating the necessary climate investment into a multiannual strategy provides an overview of financing needs and how to address those.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

When climate investments are integrated into existing local investment plans, local governments\u00a0 have already taken the first steps to ensure that investments are allocated according to its decarbonization trajectory and that all departments of the city administration are engaged in achieving the objectives.\u00a0<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

A financial steering tool: ensuring a match between climate and financial trajectories<\/span><\/b>\u00a0<\/span><\/h3>\n

One key challenge is making sure the trajectory of the financing plan is aligned with that of the climate plan. The \u201cclimate-aligned financing plan\u201d provides a method for mobilising all available financial levers across a local government and building a shared framework for investment.\u00a0<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Beyond optimizing traditional funding sources\u2014grants, taxes, debt\u2014local authorities can explore innovative tools like the \u201cgreen budget\u201d. This approach assesses the climate impact of investments by identifying \u201cgreen\u201d or \u201cbrown\u201d expenditures, which helps redirect or rebalance planned spending where needed.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Having a clear view of the investment effort required for the climate transition also strengthens dialogue with financial partners. A well-structured investment plan gives credibility to access grants, loans, or co-financing by improving financial visibility and reinforcing long-term commitment.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

3 Key Steps to Build a Climate-Aligned Investment Plan<\/b>\u00a0<\/span><\/h2>\n

1) Develop a quantified, sector-specific climate strategy<\/span><\/b>\u00a0<\/span><\/h3>\n

Break down your climate targets by sector and translate them into tangible targets or \u201cphysical trajectory\u201d. For example, reducing GHG emissions from public buildings by X% could mean retrofitting Y square meters.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

2) Translate those targets into investment needs<\/span><\/b>\u00a0<\/span><\/h3>\n

Once the targets are set, estimate the investments needed. To do so, define a \u201cunit cost\u201d per climate action (e.g., \u20ac\/m\u00b2 for building retrofits) and calculate the total climate investment needed (e.g. Y m\u00b2 \u00d7 \u20ac\/m\u00b2).<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

3) Embed these financial needs into the investment plan<\/span><\/b>\u00a0<\/span><\/h3>\n

This means 2 things: converting investment needs into operational projects across line departments and identifying all available financing options to support them.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

\"\"<\/p>\n

\u00a0<\/h3>\n

A tool for all local governments across Europe\u00a0\u00a0<\/span><\/b>\u00a0<\/span><\/h3>\n

T<\/span>h<\/span>is<\/span> methodology<\/span> will be available by the end of June. <\/span>While this method is tailored-made to French local governments, the approach is adaptable to other contexts. Whether it is called a capital investment plan, multi-annual budget, or infrastructure investment roadmap, the principles remain the same:<\/span>\u00a0<\/span><\/p>\n

\u202f<\/span>\u00a0<\/span><\/p>\n