The Guardian recently reported on how France is the biggest supporter of so-called "Carbon Bomb" projects.
This refers to a relatively small number of fossil fuel extraction projects which are so large they carry an outsized effect on the production and use of these fuels to be burned, which would emit significant amounts of greenhouse gases.
These projects receive financing through major banks, and the report focuses on how French financial institutions are some of the largest contributors to supporting the operation of these climate-unfriendly extraction projects.
Simultaneously, France has generally been seen as one of the leaders in climate-friendly policies, providing significant money for the clean energy transition and laws on greenwashing as well.
One of the main questions that this raises is how we think about the separation of government policies and private actions when it comes to climate change mitigation.
On one hand, governments seeking to minimize greenhouse gas emissions through policy should work to limit these projects in the short-run and ban them in the long-run. On the other hand, how responsible is a national government for multinational financial institutions financing these projects? Of course, they likely assume some responsibility, but it also seems impossible for governments to wholesale stop this sort of financing.
As a result, it is probably important for governments to find ways to incentivize clean energy projects and disincentivize financial returns on fossil fuel extraction.
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