Local authorities are increasingly spending on the ecological transition, but falling short of France’s climate goals. The Institute for Climate Economics (I4CE) published a report on September 13 on the finances of local authorities. The government, which has resigned, blames local authorities for a significant portion of the budget overrun. However, according to I4CE’s calculations, municipalities, departments, and regions should invest an average of 19 billion euros per year in the ecological transition until 2030 to meet the country’s climate commitments. Despite this, their spending on this issue was only 10 billion euros in 2023.
Over the past eight years, local authorities have been increasingly focused on climate issues. In 2017, they spent 5.7 billion euros; in 2022, 8.3 billion euros; and in 2023, around 10 billion euros (out of a total investment of 77.3 billion euros). However, the coming years will require even greater effort to reach the average of 19 billion euros. In 2022, I4CE experts predicted that annual spending should reach 12 billion euros. Since then, both local authorities and the State have fallen behind, inflation is affecting costs, and France has set a new target of reducing gross greenhouse gas emissions by 55% in 2030 compared to 1990 levels.
“We are not meeting the needs, there is still work to be done,” says Aurore Colin, a specialist at I4CE on low-carbon transition financing – while noting that this estimate is rather conservative. Sectors such as agriculture, biodiversity, waste, water, and sanitation are not included in these calculations. Local authorities must continue to invest in the ecological transition, as there is a discrepancy between the divestment strategy that is being requested of them and the expected investments.
Despite the increasing investments by local authorities in the transition, there is still a significant gap to be filled to achieve France’s climate goals. The effort required in the coming years is substantial, and local authorities must balance this with other budgetary constraints. The challenge going forward will be to prioritize ecological investments while also ensuring financial sustainability. There is a recognition that more needs to be done to accelerate the transition and meet the targets set by the government.
