France considers raising Livret A cap to fund climate adaptation

The French government is considering raising the Livret A savings account cap from approximately 22,950 euros to 30,000 euros to fund climate change adaptation projects. This proposal, suggested by Monique Barbut, aims to mobilize up to 10 billion euros annually for initiatives such as flood protection, heat-resilient building adaptation, and water resource management.

According to the Ministry of Ecological Transition, the measure would not function as a new tax, as funds would remain liquid and available to savers. Instead, a portion of the funds collected by banks would be directed toward climate projects through the Caisse des Dépôts, similar to how the account currently supports social housing.

The Fédération française bancaire (FBF) has expressed opposition to the plan. The banking lobby argues that increasing the cap would benefit wealthier savers and divert capital away from the long-term investments that businesses require for the green transition. They contend that the move would immobilize savings in liquid, guaranteed placements rather than supporting economic conditions necessary for broader environmental investment. A final decision from the Prime Minister's office and the Ministry of Finance is expected by the end of September.