Launch of the “2-infra challenge” methodology

How to direct funding toward infrastructure that meets the needs of the low-carbon transition and is resilient to climate change

Carbone 4 is launching the “2-infra challenge,” a new assessment method that will measure the alignment of infrastructure with a 2-degree pathway and the associated climate risks. This project is supported by major infrastructure stakeholders: the French Development Agency (AFD), La Banque Postale Asset Management, and Meridiam. To achieve the goals of the Paris Climate Agreement, it is essential to massively redirect funding toward infrastructure that will enable the low-carbon transition.The infrastructure choices made today will determine the amount of greenhouse gases that will be emitted through their use over the decades following their construction. Furthermore, infrastructure is highly exposed to risks posed by climate change—particularly physical risks and transition risks—which can lead to a loss in its value. To align their investment strategies with a 2-degree pathway and to manage climate risks, infrastructure finance stakeholders need operational and shared tools. In this context, and drawing on its experience, Carbone 4 is launching the “2-infra challenge” methodology, which will enable infrastructure investors to answer two questions:

• Is my investment strategy aligned with the 2-degree goal, and how can I set it on the right path to achieve that goal?
• To what extent are my assets exposed to climate risks, particularly transition risks and physical risks?

This methodology, which will be multisectoral and multigeographic, can be used by all stakeholders in infrastructure investment and financing. Launched in October 2018 as part of Paris InfraWeek, the development of the methodology will continue through June 2019.AFD Lou Bachelier-Degras Phone: +33(0)1 53 44 34 24 bachelierdegrasl@afd.fr

La Banque Postale Asset Management

Céline Guilbert-Bénard Phone: +33(0)1 57 24 21 07 Celine.guilbert-benard@labanquepostale-am.fr

Carbon 4 Dorothée Coloby Phone: +33 (0)1 76 21 10 00 dorothee.coloby@carbone4.comMeridiam Armelle de Selancy Phone: +33 (0) 1 44 51 72 41 a.deselancy@meridiam.com

About the French Development Agency:As a public and socially responsible financial institution, AFD plays a central role in France’s development policy. It is committed to projects that tangibly improve the daily lives of people in France’s overseas territories as well as in developing and emerging countries, in accordance with the Sustainable Development Goals (SDGs) and the priorities of France’s foreign policy. With a presence in 109 countries through a network of 85 offices, AFD currently supports more than 3,500 development projects.www.afd.fr

About Banque Postale Asset Management:With assets under management of 220 billion euros as of June 30, 2018, La Banque Postale Asset Management (LBPAM) is the fifth-largest French asset management firm. A subsidiary owned 70% by La Banque Postale, 25% by Aegon AM, and 5% by Malakoff Médéric, LBPAM manages the majority of the funds offered to La Banque Postale’s retail and high-net-worth clients. For its institutional investor clients—including insurers, mutual insurance companies, large corporations, and external distributors—it offers a range of open-end funds, dedicated funds, and discretionary management mandates. As a full-service asset manager, LBPAM operates across all asset classes. A specialist in credit management and insurance solutions, its expertise is also recognized in the management of private debt funds in the infrastructure, real estate, and corporate sectors. http://www.labanquepostale-am.fr/

About Carbone 4 Led by Alain Grandjean, Jean-Marc Jancovici, and Laurent Morel, Carbone 4 is an independent consulting firm and a leader in climate strategy, energy transition, and climate change adaptation. Our team supports public and private sector stakeholders in the transition to a low-carbon economy that is resilient to climate change.www.carbone4.com

About Meridiam:Meridiam was founded in 2005 by Thierry Déau, based on the belief that aligning the interests of the public and private sectors could provide decisive solutions to the community’s collective needs. Meridiam is an independent company specializing in the development, financing, and management of public infrastructure projects on a long-term and sustainable basis. With offices in New York, Paris, Toronto, Luxembourg, Istanbul, Vienna, Addis Ababa, and Dakar, Meridiam currently manages €6.2 billion in assets, and more than 70 projects are in the development, construction, or operation phases. www.meridiam.com