Six months after its introduction, the Climate Future Savings Plan (PEAC) has not gained traction among banks, despite its goal of funding ecological projects for future generations. With limited market appeal and high development costs, major banks like La Banque Postale and Crédit Agricole are hesitant to adopt it. Although designed for parents saving for their children’s futures, the PEAC faces stiff competition from established savings products, leaving its viability and future uncertain.
Climate Future Savings Plan: A Stalled Initiative
Six months post-launch, the Climate Future Savings Plan (PEAC) remains untapped by banks, despite its objective to channel the savings of younger generations into financing ecological initiatives. Even La Banque Postale, known for its commitment to combatting climate change, has not introduced this product to its offerings.
Crédit Mutuel Alliance fédérale notes, “It’s a complex product with limited market potential,” while Axa France, Crédit Agricole, and Société Générale also have no immediate plans to provide the PEAC. The financial sector is caught in a bind: neglecting this product could tarnish their reputation as climate advocates, yet offering it comes with substantial development costs for what is perceived as a niche market.
Understanding the PEAC and Its Future
Launched on July 1, the PEAC is designed to finance low-carbon initiatives and is primarily targeted at parents looking to save for their children’s futures. “It’s akin to a savings account but structured like an insurance product,” explains Philippe Crevel, president of the Savings Circle, in a conversation with AFP.
Similar to the Livret A, the PEAC has a cap of €22,950, with tax-free gains. However, unlike the Livret A, the capital is not guaranteed and is locked until the child reaches adulthood. Part of the investment is allocated to various certified investment vehicles, such as those labeled Greenfin or ISR, focusing on socially responsible investments.
The expected yield is projected to be higher than that of the Livret A, as per former Minister of Economy Bruno Le Maire. Some banking groups are currently exploring the feasibility of offering the PEAC to clients under 21, with BPCE planning to launch it in April within the Banque Populaire and Caisse d’Épargne networks.
Despite the anticipation, some industry experts suggest competitors may hesitate to adopt the PEAC, influenced by political resistance to climate action. Bankers defending their positions point to their existing green products as evidence of their commitment.
Challenges and Past Initiatives
Political attempts to introduce new savings accounts frequently stumble, particularly in a market dominated by established products like the Livret A, the Livret de développement durable et solidaire (LDDS), and life insurance, which collectively manage around €2,500 billion.
In October 2024, former Prime Minister Michel Barnier proposed a new savings product for industry, while five amendments in the 2025 finance bill aimed to create an agricultural sovereignty savings account. These proposals join a long list of forgotten initiatives, including the territorial development savings account introduced in March 2021 and the “sovereignty defense” savings account, which was approved in 2023 but later rejected by the Constitutional Council.
The PEAC’s future remains uncertain as it competes for attention in an already saturated market, prompting many to question whether it will ever gain traction or simply fade into obscurity.