Factsheet for measure
FR-2025-1/3699
–
Updated
– measures in France
Transition obligations
Obligations Transition
Background information
The Transition Obligations is a financing tool to support SMEs and intermediate-sized companies to develop their decarbonization efforts. Guaranteed by the French government, this scheme will provide long-term financing for a greener economy and growth. Provided for in the art. 185 of the 2024 Finance Act, this is a new type of bond that is a state-guaranteed long-term financing scheme with a fixed term of eight years and a four-year grace period.
Content of measure
From the beginning of 2025 to 31 December 2029, SMEs and intermediate-sized companies engaged to the ecological transition are eligible to this fiscal benefit. In detail, the criteria for eligibility is:
- to finance projects to improve the environmental performance of the companies concerned;
- to directly finance SMEs whose main activity contributes to the ecological transition (known as 'solution’ SMEs);
- to directly finance SMEs that have engaged on a decarbonisation process (known as ‘transition’ SMEs).
In monetary terms, the transition obligations will be composed by two funds managed by partner management companies: an interest alignment fund, which will house 20% of the assets (not guaranteed by the State) and a public fund that will hold 80% of the assets.
The French government will provide a 100% guarantee on any initial losses (up to a limit of €5 billion and a maximum of 30% of the fund's assets).
Updates
The following updates to this measure have been made after it came into effect.
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17 March 2025
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France planned to issue its first "transition obligation" before summer 2025 to support the green transition of SMEs and mid-sized companies. This new aims to offer long-term financing backed by the state, with a budget of up to €5 billion, over eight years with a four-year grace period. While the regulatory framework is set, contractual arrangements and details are still being discussed. Originally planned for early 2025, the launch has been delayed owing to political uncertainty.
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Use of measure
There is no available data about the estimated number of companies eligible receiving payments of this bond.
Target groups
Actors and funding
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Actors
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Funding
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National government
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Companies
National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Unknown
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Unknown
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: N/A
Involvement
The Transition Obligations is a government policy to promote the economy and the green transition, although with the participation of private partners. There is no data on the participation of social partners in the contribution process of this measure.
Views and reactions
To this moment, there is no reaction from social partners.
Sources
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23 December 2023: LOI n° 2023-1322 du 29 décembre 2023 de finances pour 2024 (1)
(www.legifrance.gouv.fr)
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07 July 2024: Décret n° 2024-752 du 7 juillet 2024 relatif à la garantie de l'Etat prévue à l'article 185 de la loi n° 2023-1322 du 29 décembre 2023 de finances pour 2024
(www.legifrance.gouv.fr)
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19 November 2024: Arrêté du 19 novembre 2024 relatif à la garantie de l'Etat prévue à l'article 185 de la loi n° 2023-1322 du 29 décembre 2023 de finances pour 2024
(www.legifrance.gouv.fr)
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22 November 2024: Qu’est-ce qu’une obligation transition ?
(www.economie.gouv.fr)
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22 November 2024: Infographie sur les Obligations transition Découvrez notre infographie sur les Obligations transition
(www.economie.gouv.fr)
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17 March 2025: L'Etat ambitionne l'émission d'une première "obligation transition" avant l'été
(investir.lesechos.fr)
