Contenu du sommaire : Johannesburg 2002 : Ecologie et finance

Water Spring water is a special resource given that it is both rare and essential but also renewable. However, water is rarely artificially transported and is mainly used locally. There are therefore as many problems linked to balanced management as there are with hydrographic units (basins), dependent on the changes and movements in climatic variables. Despite the fact that it is rare, no intrinsic commercial value is attached to it. There is no market for water as an asset in the same way as there is a market for raw materials. There is however a market for services that are connected to its supply. It is at the level of the large feeder basins where it is needed to organise this integrated management of water resources by means of tools of dialogue and decision-making through the putting place of suitable economic instruments. JEL classifications : O10, Q01, Q25

The financing of investment in water : a global challenge for sustainable development For a long time water has been considered as an abundant resource, even unlimited and it has seemed perfectly normal that it should be almost free of charge. It has nevertheless been shown that it was a fragile and complex element which it was necessary to economise, manage and protect. Over recent years a new awareness has come about but this still remains to a large extent insufficient. In 2025 the majority of the population will experience conditions of water supply that are either weak or else catastrophically weak. Whilst social, behavioural, quantitative and qualitative aspects have often been themes at a numerous of conferences over recent years, financial questions have been discussed but rarely. However, there is a need to resolve the financial problem which will be central to the battle over water during the course of the next 25 years. JEL classifications : Q01, Q25

Energy constrained by the environment and by finance The links between energy, the environment and finance assume a major strategic and political importance. Today, we can summarise the stance of energy companies in the following manner : « we are not in a position to say whether climatic change is a scientific reality but our customers our now requesting that the environment be respected and it is our duty to respond ». From the side of citizens-consumers, the awareness of environmental problems has highlighted a contradiction between the desire to consume cheap energy and at the same time to oppose the installation of new production capacities. First of all we examine this contradiction and then move on to analyse the financial constraints that this situation engenders and finally we study to what extent any political intervention can be justified in order to highlight this contradiction. JEL classifications : Q01, Q40

The United States and climate change from Rio to Johannesburg The stabilisation of the GES that was fixed in Rio in 1992 will not be reached in the USA. Similarly, without their participation, the agreement risks not being extended to include other participants during the second period of commitment. Their reintegration within an international mechanism to reduce emissions is therefore essential. In order to establish a new relationship with the USA on questions related to climate change, it is therefore necessary to understand the various economic, political and cultural issues which contribute to forming American public opinion. It could have been thought that the arrival of George W Bush could have been translated into a change of policy in this area. An examination of the policy of the USA over the past 10 years has shown that this is not the case. The gradual approach of the Bush administration could allow a certain implementation of the actions to reduce emissions. JEL classifications : Q01, Q25

Planet climate change -The trade in emission permits in order to protect a collective asset Will the Kyoto protocol jeopardise the industrial competitivity of countries ? This article is dedicated to looking at this question. First of all the author analyses the status of the climate as a collective global asset and the structure of the Kyoto agreement. Then, he characterizes the differential impacts of the introduction of exchange mechanisms within an international regime that is based on quantitative restrictions commensurate with the degree of harmonisation in national policies. Finally, he is interested in the possible impact of the deployment of the development Mechanism created in Kyoto between the industrialised nations and the PED. It is through the exchange of emission permits between these two zones that it is possible to identify the way to overcome the problem caused by the lack of participation of the PED in the system of quantified undertakings, without affecting their development objectives. JEL classifications : K32, O10, Q01, Q25

The joint implementation of the Kyoto protocol, a double dividend for France and the countries of Central and Eastern Europe Numerous initiatives that relate to the MOC which already exists overseas, and which relate to the identification of the optimal schema and the estimation of the financial stakes involved in its implementation or its non-implementation. These must be assessed on the basis of the criteria which make the MOC an essential mechanism : on the one hand the minimising of the costs involved in fulfilling the obligations under the Kyoto protocol and on the other the maximising of French presence in the East. The report concludes that the register is the best system in the central hypothesis of a credible price signal on carbon. Its implementation would need few adjustments in relation to the current situation and would minimize the budgetary constraint. A fund would be a second ranking option. Finally, the study sought to assess the financial interest for France in the rapid implementation of the MOC. JEL classifications : K32, Q01, Q25

Environmental taxes : an instrument of incentive or of financing ? The need to implement effective and environmentally efficient environmental policies is becoming more and more crucial, notably in the fight against climate change. In this case, the « mechanisms of flexibility » envisaged by the Kyoto Protocol are precisely aimed at introducing an economic logic that is intended to respond to this requirement for efficiency. Thanks to their potential for static and dynamic efficiency, the « economic instruments » for the protection of the environment are considerably developed amongst the industrialised countries. The last decade has seen a growing use of environmental taxes. Similarly, within the framework of negotiable permits, if the initial allocation of licences is carried out by sale, this then becomes a quasi-fiscal approach. This article sets out to analyse these economic instruments. JEL classifications : H21, H23, Q01

« Negotiable emission permits » and the security of administrative authorisations This article deals with the mechanisms involved in implementing the Kyoto protocol and more specifically with « negotiable emission permits ». In effect, the European Commission envisages the putting in place of regulation with effect from 2003. Consequently, on the 23rd of October 2001, it adopted a framework-directive proposal « in relation to the putting in place of a rights exchange system for greenhouse gas emissions » and has supported the carrying out of studies which focus on so called « joint application mechanisms » and of « self-development » (mechanisms that enable industrialised countries to transfer emission permits between themselves and to obtain additional permits by virtue of technology transfers which operate in favour of developing countries), as well as methods to both measure and monitor emissions. JEL classifications : K32, Q01, Q25

How to reconcile economic growth and the environment : the Lafarge point of view ? In this interview, Bertrand Collomb looks at the environmental policy developed over recent years by Lafarge. He also discusses the different motivations that have pushed this company to invest in the environment and sustainable development as well as the means available to assess the impact of such a policy. He then gives us his point of view on the role of the NGO's at the Johannesburg summit in this area. JEL classifications : D21, Q01

The environment within new Economic Regulations : implications for companies The NRE legislation obliges any company that is quoted on the stock exchange to inform the public of the manner in which that are taking into account the social and environmental implications of their activity. Similarly, the green Book on the social responsibility of companies seeks to enhance good practice in the area of sustainable development. The recommendation of the Commission concerning the taking into consideration of environmental aspects also refers to the need to put in place a publication of environmental information. Consequently, social and environmental information for shareholders is considerably reinforced. Nevertheless, this information is an important lever in the steering of the company by shareholders. It is therefore important to establish a general reference framework that guarantees the comparability of reports. JEL classifications : M40, D21, Q01

Insurance and the environment Although insurance against environmental impact risks is not yet compulsory in France, it is appearing to be more and more necessary for a large number of companies. This allows them to not only finance damage or operating losses that can arise from pollution at their operating site or from external events but also to cover the responsibility that is incumbent upon them in the event of any pollution where they are the actual or supposed perpetrators. In economic terms, this branch of insurance is still very young. The aim of this article is to explain how insurers can help business to protect themselves both through insurance guarantees as well as through a healthy approach to risk prevention. JEL classifications : G22, Q01

The impact of socially responsible investment on the environment : some elements of reflection Socially responsible investment (SRI) is a major form of investment savings in the United States and the United Kingdom. In the event that the sound financial performances of SRI is confirmed, the social demand of investors and the institutional reforms that are underway are likely to lead to a rapid development in SRI. They reflect the concerns of civil society and give an increasing place to environmental concerns. Nevertheless, the real impact of SRI on the environment remains to be measured. In order to clarify the debate, a distinction is drawn between the impact created on those companies which are targeted by socially responsible investors and the macro-economic impact. Even though it is clear that SRI enables companies to reflect on the environment, its real impact on the environment is difficult to assess. JEL classifications : G39, Q01

French portfolio management and the environment Traditionally, the French transferable securities industry appeared monopolised by the big banks and insurance companies whose questioning about issues related to the environment appeared relatively weak. However, it is possible to observe a growing preoccupation with « socially responsible » or « ethical » management where the environment is a major judgement criterion. Two recent pieces of legislation have integrated these new requirements. However, it is pertinent to ask oneself about the commitment of Parisian finance to ethical management bearing in mind its privileged relationship with companies and the weak means of evaluation that have been put in place. It is more likely to be employees/ savers/ citizens who will demand socially responsible investment and more specifically a respect for the environment which directly concerns them. JEL classifications : G39, Q01

The environment and the Stock Market Today, there are a certain number of companies whose activity is linked to the environment, not as a consequence of its variations but through a concern about preserving this environment. What is the consequence of this activity on their stock market price ? Similarly, insurance companies are concerned about climatic catastrophes. A decisive question is being asked : are we at the start of a climate change or are we living through a long period of climate related risk ? What is the real effect of human sewage ? These questions determine the financial situation of insurance companies and their stock market performances. Finally, the author questions the « ethical funds » which at the stock market are supposed to benefit companies who, through their « moral » choices are attentive to their impact of their activity on the environment JEL classifications : G10, Q01

Debt conversion for environmental protection : the example of the Polish Ecofund The Polish Ecofund is a formula which is at the same time historic, original and efficient for converting public debt in order to promote environmental protection. Nevertheless, discussions are again taking place, on a recurrent basis, on the sui-generis nature of these funds whose practical consequences may be on certain points important. Otherwise, the scheduled end of the consolidation of the Polish debt in 2010, more fundamentally raises the question about the future of the Ecofund at the end of this period. This article also looks at the resource mobilisation of the Ecofund, its status, operation and on its capacity to protect the environment. JEL classifications : H63, P29, Q01

Assistance with development : a public policy at the heart of sustainable development and the governance of globalisation The flows of public aid for development have severely contracted over the last decade. This article identifies for reasons for the decline in this policy and, if necessary, how to reframe this public policy of financial and intellectual transfers to the governance of globalisation. Beyond the priority given to the reduction of poverty, to political and financial stability and the management of migratory movements, the attention paid to the big environmental issues, firstly the climate and bio-diversity, but also the problem of water resources management or else food and health safety, nevertheless play a major role for those whom it is convenient to refer to as « the developers ». Assistance for development appears more and more central to the definition of a global economic governance that is centred on sustainable development. JEL classifications : O19, Q01

What discount rate for the long term ? In the sacrifices we have made to improve the future, is it better to protect the distant future by selecting a discount rate that decreases over time as certain ecologists and philosophers have recommended ? This would involve a much more important taking into account of the greenhouse effect and nuclear waste in our cost-benefit analyses to the detriment of public investment for more immediate benefits such as the improvement of the transport and education infrastructure. In this article we will demonstrate how the classical theory of finance allows this complex question to be answered in a positive way. JEL classifications : D99, Q01

Environmental indicators : context, practices and questions raised for the evaluation of public policies Evaluative indicators rely on the PER structure (Pressure / State / Responses) or DPSIR (Driving forces / Pressure / State / Impact / Response) where the entire chain of effects necessary for the evaluation of policies is illustrated by indicators. Performance indicators focus on the responses of policy to environmental problems. The notion of performance involves the existence of an action whose efficiency can be assessed and a scoring table enables the result to be judged. Moreover, recent work has been interested in how issues related to the environment can be integrated into other public policies, especially transport and agriculture which need a certain degree of finesse in the indicators owing to the number of integration instruments and their impact on the behaviour of different agents. JEL classifications : Q01

Sustainable development : the new ideology Environment is now a major subject in the political and public debate. Precautionary principle and major risks ; health, epidemiology and food security ; biodiversity, genetic engineering ; industrial pollution and accidents ; nuclear security and radioactive waste, climatic change and renewable resources... worry public opinion. This article deals with the scientific, ideological, economic and geopolitical evolution of the sustainable development. JEL classifications : Q01

Changes in banking in the OECD countries : new sources of revenue, new jobs Deregulation and innovation have unleashed considerable forces that continue to influence the manner in which banks operate as well as their restructuring. All the financial systems seem to slide from a system dominated by banks towards a system that is dominated by markets. The consequences are significant both in a practical and theoretical sense. Traditional intermediation is on the decline. Banks are becoming a business that provide services and risk management linked to capital markets. Here we characterise the changes in French banks over the last half a century and more specifically their strategic reorientation through the distortion of their revenue. The study uses international comparisons between the OECD countries. It highlights the weakening of tradition activity and identifies the new sources of revenue and the new jobs. JEL classifications : G21