The corporate sector in cities offers a new source of investment opportunities for activities aiming to mitigate GHG emissions. In Paris, the city initiated the creation of the Paris Green Fund (« Paris Fonds Vert »). Paris is the only city to have initiated this kind of fund through a legal derogation allowing it to create a private investment fund dedicated to companies contributing to climate change in its own territory. For the moment, other French cities have not been able to create private investment funds similar to that of Paris.
The City of Paris submitted a proposal to the City Finance Lab to accelerate the replication of territorial development funds such as the ‘Paris Green Fund’. These funds will be dedicated to channelling private climate finance into the development of innovative solutions with a positive impact on climate change. With Demeter as its fund manager, Paris has managed to raise in few months over EUR 100 million in its first closing (out of a maximum target of EUR 200 million). The objective of the initiative is to analyse the conditions of success of the ‘Paris Green Fund’ and its impacts, and to disseminate the information to other French and European cities, stimulating replication of the fund and channeling further investments into solutions with a positive impact on climate change.