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On 24 January 2017, Agence France Trésor launched its first Green sovereign bond (the Green OAT), with a coupon of 1.75% maturing on 25 June 2039. Its initial insuance volume amounted to seven billion euros, making France the first country to issue a benchmark size sovereign green bond. The amount outstanding for the Green OAT at the end was over 35 billion euros as of April 2024.

Green OAT objectives and energy transition

The Green OAT framework states that expenditure must be devoted to one of the four following goals: taking action against climate change (mitigation), adapting to climate change, protecting biodiversity and reducing pollution. Among these objectives, mitigation seems to be the most important concern: fighting climate change appears to be a priority for which effective initiatives can be implemented without delay. In order to achieve these objectives, the French Green OAT finances programs in six major sectors: Building, Energy, Transport, Living resources, Pollution and Adaptation. Out of the 5.9 billion euros allocated in 2019, 1,765 million euros have been devoted to the building sector, which, according to the Agence France Trésor, contributed almost entirely to the objective of climate change mitigation.

France: leader in the green bond market

While the French government is the largest green bond issuer in France, it is not the only player in the green bonds market. Indeed, French banks have an important role in the issuance of green bonds: in 2019, Credit Agricole and BNP Paribas were part of the leading European banks in green bond underwriting. The strong involvement of French government and banks in the issuance of green bonds makes France one of the leaders in the global green bond market.