The French state was committed to guaranteeing €2 billion ($2.2 billion) in loans for businesses that are investing in climate change adaptation, The French minister of finance Bruno Le Maire announced on Thursday, according to Bloomberg.
This approach was chosen due to the constraints on public finances that make providing grants unfeasible.
Bpifrance, the public investment bank, will oversee the loan system for amounts exceeding €200 million. Meanwhile, starting in July, smaller companies can secure their loans through commercial banks.
“We can’t just have grand plans for fighting climate change; we also need to take immediate, powerful, and radical decisions,” Le Maire stated.
The minister has directed state-controlled firms, including Électricité de France S.A. and rail operator SNCF, to submit comprehensive adaptation plans by year’s end.
He also declared that the government will reject any public building investments that do not consider climate change.
