30 August 2022: Green OATs: Revision of the amount of Green Eligible Expenditures for 2022

The amount of Green Eligible Expenditures to which the State's 2022 green bond issues will be matched will amount to €10 billion for the year 2022.

The initially announced amount of €15 billion for 2022 is revised downwards, following the deliberation of the Commission de régulation de l'énergie (CRE) of 13 July 2022 relating to the evaluation of the public service charges for energy, which provides that the charges for the support of renewable energies will be negative in 2022.

The increase in energy prices increases the valuation of renewable energies on the wholesale electricity or gas markets. Their valuation now exceeds the level of the feed-in tariff for these installations. This tariff is therefore unlikely to be subsidised in 2022.

The envelope of Green Eligible Expenditures for Green OATs, of which public subsidies for renewable energies are part, is therefore revised downwards and will amount to €10 billion.

At the date of this press release, €9.4 billion of Green Eligible Expenditures have already been financed by Green OATs in 2022.

Framework for Green Eligible Expenditures

France's Green Bonds programme targets State budget spending on climate change mitigation, adaptation to climate change, biodiversity protection and pollution control, in line with the Energy Transition and Green Growth Act and France's commitment to implement the Paris Climate Agreement. The selection grid for Green Eligible Expenditures is defined in the framework document for the State's green bonds.

The projects corresponding to Green Eligible Expenditures are identified each year ex ante by an inter-ministerial working group under the aegis of the Prime Minister.

In accordance with the commitments made at the time of the inaugural issue of the Green OAT, France provides civil society and investors with detailed monitoring of the expenditure matched with its green debt issues, with (i) annual allocation and performance reports (the fifth of these reports, covering the year 2021, will be published in the coming days), and (ii) environmental impact reports, the fifth of which, published in July 2022, is devoted to weather forecasting and earth observation. The preparation of the reports on the environmental impacts of the expenditures is supervised by an Evaluation Council composed of independent experts of international repute.

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