Carbon Impact Credit: Evidencing Resilience Through Uncertain Times

03 December 2020

By Marie Lassegnore, Credit Fund Manager, La Française AM

The spread of Covid-19 brought about an unprecedented health crisis which resulted in dramatic economic consequences. Nevertheless, we also observed unexpectedly fast and positive environmental impacts, such as cleaner air and clearer skies thanks to airborne particulate matter levels dropping in big cities. Indeed, during lockdown, coal consumption has dropped significantly as electricity demand fell, we have seen the largest worldwide decline in coal consumption since World War II1:

This drop in electricity demand is certainly temporary, but how has politics taken over?

In this context, government and supranational institutions recognised the necessity to launch stimulus packages intended to support the economy whilst placing heightened attention to environmental factors.

Next Generation EU
The Eurogroup agreed in July 2020 to the “Next Generation EU” plan which has a budget of EUR 750bn to help member states finance the economic recovery post COVID-19. The member states have decided to divide the plan into EUR 390Bn of non-refundable grants and the rest as loans. It will supplement the Union’s budget for the period 2021-2027, which will
bring the total financial capacity to EUR 1.85tn. The notion of green and digital transition is central to the plan alongside economic resilience, as 30% of the Next Generation EU must align with green objectives. Indeed, the Next Generation EU includes a clear necessity to be aligned with the Green Deal (introduced by the EU in December 2019) as climate neutrality is one of the four priorities set by the EU strategic agenda for 2019-2024...
 

1 Source: International Energy Agency, 2020 

Les sites du groupe
My bookmarks

Pins are saved using cookies. Deleting them from your browser will delete your preferences.

La Française Group provides access to the expertise of a number of asset management companies around the world. To provide you with the most relevant information, we have developed an interface to present the full range of products available for your investor profile and country of residence.
Please indicate your profile
1
Country
2
Language
3
Profile
Your country of residence
Your language
Your profile
<p class="new-disclaimer__legal-notice">Before consulting this website, for your protection and in your interest, please read the “<a href="en/legal-notice/" target="_blank">disclaimer</a>” and “<a href="en/regulatory-information/" target="_blank">current regulations</a>” carefully. This information explains certain legal and regulatory restrictions which apply to individual and professional investors according to local law. By accessing this site, in my non-professional or professional capacity, I acknowledge that I have read and accept the terms and conditions of use. Pursuant to the application of the European Markets in Financial Instruments Directive (“MiFID”), please state to which category of investor you belong&nbsp;:</p>