How to channel funding towards infrastructures that meets the needs of the low carbon transition and that are resilient to climate change
Carbone 4 is launching the “2-infra challenge”, a new method that will measure the alignment of infrastructure with a 2 degrees trajectory and associated climate risks. This project is supported by important actors in the domain of infrastructure: Agence Française de Développement (AFD), La Banque Postale Asset Management and Meridiam.
To achieve the objectives of the Paris climate agreement, it is essential to redirect funding towards infrastructure that will enable the low carbon transition. The choices made in terms of infrastructures today are decisive for the amount of greenhouse gases that will be emitted by their use over decades after their construction.
In addition, infrastructures are highly exposed to the risks posed by climate change, particularly physical risks and transition risks, which can lead to losses in value.
To align their investment strategy with a 2-degrees trajectory and to manage climate risks, infrastructure finance actors need operational and shared tools.
In this context and with its rich experience, the Carbone 4 launch of the “2-infra challenge”methodology, will allow infrastructure investors to answer two questions:
- Is my investment strategy aligned with the 2 degrees objective and how to foster the correct trajectory to achieve this goal?
- To what extent are my assets exposed to climate risks including transition risks and physical risks?This methodology, which will be multi-sectoral and multi-geographic, can be used by all actors of investment and infrastructure financing.Launched in October 2018 as part of the Paris InfraWeek, the development of the methodology will run until June 2019.
Tel : +33(0)1 53 44 34 24
La Banque Postale Asset Management
Tel :+33(0)1 57 24 21 07
Tel : +33 (0)1 76 21 10 00
Armelle de Selancy
Tel : + 33 (0) 1 44 51 72 41
About l’Agence Française de Développement
A public and solidarity-based financial institution, AFD is the central player in French development policy. It commits itself to projects that concretely improve people’s daily lives, in overseas territories as well as in developing and emerging countries, in accordance with the Sustainable Development Goals (SDGs)and the priorities of the region. the external action of France. Present in 109 countries through a network of 85 branches, AFD currently supports more than 3,500 development projects.www.afd.fr
About Banque Postale Asset Management
With assets under management of €220 billion as at 30 June 2018, La Banque Postale Asset Management (LBPAM) is the fifth largest French asset management company.
A subsidiary owned 70% by La Banque Postale, 25% by Aegon AM, and 5% by Malakoff Médéric, LBPAM manages most of the funds offered to individual and wealth management clients of La Banque Postale. To clients that are institutional investors, insurers, mutual insurance companies, large companies, and external distributors, LBPAM offers open-ended funds, dedicated funds, and portfolio management services. As a full-service manager, LBPAM works in all asset classes. In addition to being a credit management and insurance solution specialist, LBPAM also has recognised expertise in private debt fund management (on infrastructure, real estate and corporate sectors). www.labanquepostale-am.fr/
About Carbone 4
Led by Alain Grandjean, Jean-Marc Jancovici and Laurent Morel, Carbone 4 is an independent consulting firm, leader in climate strategy, energy transition and adaptation to climate change. Our team supports public and private economic players in the transition to a low-carbon, climate resilient economy.www.carbone4.com
Created in 2005 by Thierry Déau, Meridiam is an independent investment firm specialising in the development, financing and management of long-term, sustainable public infrastructure projects. Its business model is underpinned by the belief that the alignment of interests between the public and the private sector can provide key solutions to the needs of the community. With offices in Paris, New York, Toronto, Luxembourg, Istanbul, Vienna, Addis Ababa and Dakar, Meridiam manages assets worth €6 billion and has more than 70 projects under development, construction or operation to date.
Find out more on: www.meridiam.com