city of paris inaugural sustainability bond · 2019. 7. 24. · 5 with 12 million inhabitants, the...
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City of Paris
Inaugural Sustainability Bond
November 2017
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A leading world-class Capital
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Seine banks transformed in pedestrian area
Paris has developed, into a center of culture, science, tourism, and finance, being recognized as one of the world's most influential global cities and the most visited city in the world (32 million visitors in 2015* and a record year in view for 2017 after a decrease in 2016 as a consequence of terrorist attacks )
Paris is at the heart of the Ile-de-France Region, one of the wealthiest regions in Europe and main economic hubs
Paris ranks in the world’s Top 50 cities for the quality of life (ahead of London or New-York)
As the capital, Paris is the political, administrative and business center of France
A leading European capital
* Source : Paris-Ile de France Tourist Board (CRT)
* Source Mercer 2017
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Source : Insee, 2017
The gross domestic product (GDP) of Paris Region represents 30% of France’s GDP. Its GDP per capita is equivalent to 3 times the EU-28 average*
It is essentially an economy of services (around 85 % of the GDP)
Its economic development is facilitated by top notch infrastructures and a location at the heart of Europe
• A hub of Europe’s economy. Paris Region is the best connected City in Europe and offers the most favorable economic conditions for setting up a business : the largest airport hub in continental Europe (passengers and fret) with 2 major airports, 5 container terminals along 500 km of navigable waterways, 6 railway interchanges, 14 subway lines, 5 RER (regional express trains) lines, 7 tram lines, more than 1400 bus lines (in the Region).
• First European city for hosting headquarters of top 500 global companies
• Paris attracts approx 15% of Foreign Direct Investment (13% in 2013)
The unemployment rate in Paris is structurally lower than at national level (see the graph on the right hand side)
A dynamic city with economic strengths
Harbour at Javel, 15rd arrondissement
* See methodology by eurostat
Unemployement rate (%)
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With 12 million inhabitants, the Ile-de-France Region where Paris is located represents almost 19 % of France’s total population (Paris : 2.3 million)
• Since 1999, Paris’ population has increased by over 100,000 people
This population is on average younger than in the rest of the national territory
• 600,000 students (including 335,000 within the city limits)
• 372 higher educational institutions (7 Universities, 2 IUT, 13 engineering schools, 37 business schools,…)
A highly qualified workforce
• 43.1 % of the working population are French executives in Paris (vs 15,6% at national level)
• 6.5 % of Europe's researchers (over 130,000 people) are located in the Paris region
• First European city in term of R&D spending
• A lot of new technology corporates
17,1%
68,3%
14,6%
22,2%
60,7%
17,1%
Under 18
18 to 64
Above 64
Paris France
Pyramid age structure
ESPCI – Higher School of Industrial Physics and Chemistry of the City of Paris
A dynamic population
Ile-de-France
Source : Insee, Distribution of the graduates of Higher education
according to the region of residence 2012
Source : Insee, 2013
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Organization
& Responsibilities
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Philharmonie concert hall
Paris is committed to the well being of its population, sustainable development, and supporting the French economy.
By law, the fields of responsibilities cover :
Social services & Healthcare
Urban planning
Primary and Secondary Schools
Culture
Environment
Economic development
Water Management, Waste collection and recycling
Paris’ fields of responsibilities
Elementary school Wattignies
Renovation of Les Halles district
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Council of Paris
Paris’ specific status : a City and a Department, run by the same Council made up of 163 representatives who are elected every 6 years (last election : 2014)
• The Mayor and Deputy Mayors are elected by the Council of Paris
The French law on territorial reform (n°2015-991, 7th Aug 2015)
seeks to simplify local administration in order to make it more efficient
The city is the largest member of the Metropole de Paris which was set up in Jan 2016.
Paris institutions
Party
Elected
people
Majority (90 seats)
Socialist Group & Related 55
Communist-Front de gauche Group 13
Paris Ecologist Group 16
Center Left Radical and Independant Group 6
Opposition (73 seats)
Les Republicains Group 48
UDI-MoDem Group 15
Non registered 4
Parisian Progressist & Constructive Group 6
President of Council of Paris
Mme Anne Hidalgo
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2016 : “Métropole du Grand Paris”
A gradual transfer of devolved responsibilities :
• 2016-2017 : setting up of the Metropolitan Project and the Master Development Plans (urban planning, energy distribution networks, pollution control, risk management,…)
• 2018 : transfer of responsibilities
A council of 209 elected members from the member’s cities (62 from Paris City)
Budget :
• Income = Cities’ taxes transferred + State grants
• Expenses = Devolved responsibilities + Compensation towards Cities
Map : distribution of inhabitants the metropolis (2016)
Métropole du Grand Paris : an inter-municipal body (EPCI) which is in charge of coordinating social housing policy and urban planning over 131 municipalities (over 7 Million inhabitants) of the greater Paris area
No Impact on Paris’ budget
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A new status for Paris
A bill was approved on 28th Feb 2017, leading to a new status for Paris that will come into force gradually throughout 2018
This will lead to administrative simplification and improved efficiency of public actions (for instance the 4 central arrondissements will merge)
New breakdown of competencies between the City and the State (in particular in terms of parking, impound public service, fight against unworthy housing , funeral, police against fire …)
On 1st Jan 2019 the City (« Commune » under the French law) and the « Departement » will merge to become: a new local authority : « Ville de Paris »
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French local and regional governments’ financial and administrative autonomy are constitutional principles
No explicit guarantee on local authorities’ debt from the State but close relationship :
The State guarantees the notion of general public interest :
3 types of control from the central administration on local authorities.
• controlling the legality of the city’s initiatives ( by the Prefect who is the representative of the State)
• controlling public accountancy operations and local authority budget (by the Ministry of Finance)
• Regular checking by a public financial Court (Chambres Régionales des Comptes reporting to Cour des Comptes)
The State guarantees financial backing by:
• determining tax bases (local authorities are free to determine most of the tax rates)
• guaranteeing that local authorities effectively receive tax revenues due
• giving local authorities monthly advances of local tax revenue
• compensating local authorities for devolved responsibilities
Paris’ relationship with the State
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A strong financial structure
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Cautious budget planning as a matter of principle leading to:
A structural and significant operating surplus EUR 581M in 2016
an ambitious Investment budget of EUR 1.63 bn in 2016 mainly self-financed
Golden rules imposed by the law :
• operating income funds operating expenditures
• debt amortization is paid by own resources
• debt funds only investment spendings
Paris Budget structure
Two distinct budgetary sections: Operating and Investments
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A diversified operating income
Sources : forecast 2017
Administrative accounts 2012-2016
Operating incomes = EUR 8.3bn in 2017
2012 2013 2014 2015 2016 2017
Taxes 65% 65% 63% 68% 68% 71%
State Grants 17% 16% 15% 13% 10% 8%
Compensation for new responsibilities 4% 4% 4% 4% 4% 4%
Subsidies and contributions 3% 3% 3% 4% 3% 3%
Fees concessions and services provided 6% 6% 5% 6% 6% 6%
others 5% 5% 8% 5% 8% 8%
Financial Income 0,3% 0,2% 0,4% 0,3% 0,3% 0,3%
Exceptional Income 0,1% 0,4% 0,5% 0,2% 0,4% 0,2%
Operational Income 100% 100% 100% 100% 100% 100%
Overview of fiscal income (2016)
property tax 1 000 M€
residence tax 760 M€
tax on real estate transactions 1 274 M€
CVAE +MGP 1 449 M€
tax on household waste collection 467 M€
business property tax 317 M€
other 395 M€
total 5 663 M€
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A strong base for incomes : a solid tax profile
A diversified operating income
• Low tax rates compared to the national average
(13,38% for residence Tax vs 24,38% at national level)
• Dynamic tax income due to the population profile, a solid economic activity base and a dynamic real estate market.
• High potential supplementary incomes linked to the use of the public domain (parking fees, concessions, etc.)
residence tax
property tax
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Controlled Operating expenditures
Operating expenditures = EUR 7.8 bn in 2017
Source: forecast 2017
Administrative accounts (AA) 2012-2016
Equalisation impact on operating expenditures
AA 2014 AA 2015 AA 2016
Operating Expenditures (Op Exp) 7 527 7 653 7 683
% change 1,67% 0,39%
Op Exp excluding equalisations 6 246 6 299 6 294
% change excluding equalisations 0,85% -0,08%
2012 2013 2014 2015 2016 2017
Payrolls 30% 29% 29% 29% 29% 30%
General Expenditure 12% 11% 11% 11% 10% 10%
Social Aid 22% 21% 21% 21% 21% 21%
Subsidies 6% 7% 7% 7% 7% 7%
Contributions to public authorities 11% 11% 11% 10% 10% 10%
Contributions to local authorities 16% 16% 17% 18% 18% 18%
others 2,0% 2,0% 2,0% 2,2% 2,4% 2,6%
Financial charges 1,4% 1,5% 1,7% 1,6% 1,7% 1,7%
Exceptional charges 1,0% 1,0% 1,0% 0,7% 0,4% 0,5%
Operational Expenditures 100% 100% 100% 100% 100% 100%
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Operating expenditures strictly controlled to face increasing transfers towards other local authorities
• Human resources costs and general charges under tight control helped by administrative reform
• Room of manoeuvre of many non compulsory expenditures
• Transfers towards other local authorities increased substantially in the last years
Controlled operating expenditures
General Expenditures (EUR M)
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Investment budget
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2014 – 2020
EUR 10 bn
for the future of Paris
Housing and social diversity
30%
5%
11%
9%
Smart city and attractiveness5%
8%
Sports
16% 4%
Environmentally-friendly city
Participatory
budgeting
Urbanism end redevlopment of public space
Municipal solidarity and
families
12%
Culture and
heritage
Public
transport
and soft
mobility
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Investment budget
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A high level of self financing enabling a high level of Investment :
₋ Investment = EUR 1.63 bn in 2016
₋ Limited financing requirements = 39,3% (average 2012-2016)
Consolidated budget (City + Department)
Administrative accounts 2011/2016
Social housing – street bleue
Yearly investment (€ M)
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Borrowing Policy
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Borrowing policy
Pragmatic Management…
Double target : minimize present and future financial burdens and maintain the City’s ability to raise funds whenever necessary
Systematic evaluation of the different funding opportunities: Credit Loans vs Bonds, Private Placements vs public bonds, Eur vs other currency funding…
» which enables low global funding costs
… which enables low global funding costs
Banks 5%
CDC,EIB,CEB 14%
Schuldschein 7%
Bonds : Public issues 33%
Bonds : Private
placements 41%
Bonds 74%
Paris’ main financing tool is our EMTN program with a €6 bn ceiling:
43 unmatured issues and some taps for an outstanding amount of €3.9Bn
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Borrowing policy
Hedging
No currency risk
A limited interest rate risk
Initial debt Outstanding debt
Fixed rate 83%
Floating rate 17%
Fixed rate 89%
Floating rate 11%
EUR 91%
CHF 5%
NOK 2,6%
JPY 1%
EUR 100%
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• A pragmatic and skilled management :
In house pricing tools Stress-tests are run periodically
• A conservative debt management :
Use of vanilla products (1) A limited interest risk exposure : no structured products (2) No currency risk (3) (1)+(2)+(3) 100% of the debt ranked « A1 » (lowest risk) according to Gissler risk score card Management of counterparty risk Diversified funding instruments A smooth debt amortization profile
Borrowing policy
To minimize present and future financial burdens
To maintain the City’s ability to raise funds whenever necessary
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A linear debt amortization profile (loans and bonds) ...
Borrowing policy
…facilitating the mandatory debt service obligation
(art. L2321-2 from Local Authorities Code)
An average maturity of 10.6 years
average maturity
10.6 years
City of Paris debt profile as of 1st Nov 2017
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Borrowing policy
Year Maturity (years) Average rate (%) Spread /OAT(bp)
2013 15 2,95 16
2014 12,4 1,91 13
2015 16,9 1,59 24
2016 17,3 1,2 27
2017 14,6 1,54 26,5
Funding rate since 2013 (*) Long term funding yield for Paris
The City benefited from the low rate environment
(*) as of 10/10/2017
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Borrowing policy
Summary for outstanding debt as of 1st Nov 2017:
outstanding amount (loans and bonds): €5.28bn
average funding rate: 2.25%
average lifetime: 10.6 years
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A diversified access to liquidity :
Access to liquidity
Commercial papers program EUR 800M
(S&P A-1+ / Fitch F1+)
Short term credit line EUR 200M
Multiannual credit line with EIB EUR 250M
Multiannual credit line with CEB EUR 175M
(consistent with S&P methodology )
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High rating for a local authority in France
Financial rating
« well-diversified economy and superior infrastruture » « Clear budgetary strategy » « high financial transparency » « tight budget control and optimization of nontax revenue (AA / Stable / A-1+)
(AA / Stable / F1+)
« sound operating margin » « fairly low tax pressure » « revenue flexibility » « sound self-financing capacity »
Prudential Weights:
Solvency ll :0%
CRD lV: LCR 2A 20%
Last reviewed on October 20th, 2017
Last reviewed on October 13th , 2017
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A Sustainability Bond for
City of Paris
Let’s take on the challenges of climate change and social issues
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A new Framework, to support our environmental and social commitments towards Parisians and our investors partners, in line with the Green and Social Bond Principles 2017 : (cf. appendix for details) It defines the eligibility of the projects financed by the Bond:
For their environmental quality Clean transportation Energy Efficiency Renewable Energy Adaptation to climate change
For their social quality Access to essential services for underserved populations Quality of life improvement in unprivileged area Social Solidarity Economy Social housing
It defines the reporting features : Indicators and ESG criteria Proceeds allocation and external verification (DRFiP, Préfecture) External review
A new Framework for the future City of Paris issuances
A new Framework in line with several UNSDGs (cf. Second Party Opinion)
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Rating and extra-financial credentials
Paris is at the top of Vigeo’s Local Authorities Ranking (among 29 European Local Authorities, end 2016)
Sustainable Development Performance:
Overall “Advanced*” ESG performance
Opinion on the next bond issue:
“Vigeo Eiris confirms that the bond intended to be issued by the City of Paris is a “Sustainability Bond” with positive contribution to sustainable development, aligned with the Green and Social Bond Principles. Vigeo Eiris reaches a reasonable level of assurance on the bond’s contribution to sustainability.”* *Definition of Vigeo Eiris’ scales of assessment :
Level of Assurance: Reasonable, Moderate, Weak.
Paris is labeled as “Positive Energy Territory” By the French Ministry of Ecology, Sustainable Development and Energy
* Vigeo Rating: Advanced, Strong, Limited, Weak
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ESG criteria at the core of all projects: responsible procurement Presentation of City of Paris’ procurement function
A centralized procurement function since 2009
All expenditure chains gathered under the same direction since 2014, the Procurement and Finances Direction (« Direction des Finances et des Achats »)
Well trained and skilled procurement officers carrying out their missions in accordance with the Procurement deontology chater (« charte de déontologie Achats »).
A policy based on three sustainable developement’s pillars…
Economic: watch and supplier relations, SME’s access to public order, innovative procurement…
Social: integration clause/ criteria, integration markets, set- asides alongside Sheltered and Adapted Work or Integration Structures per Economic Activity sector (« Travail Protégé et Adapté ou des Structures d’Insertion par l’Activité Économique »)
292 active markets including a socio-professional insertion clause (average execution rate of 228%) – 369,003 working hours in 2016
Environmental: execution clause/ criteria – environmental health, protection of natural place and adhering in the circular economy’s loop
56.89 % of markets with an environmental clause/ criteria in 2016
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ESG criteria at the core of all projects: responsible procurement Schema of Parisian responsible public order
Derived from the law « ESS » (n°2014-856) from 31st July 2014, completed by the energy transition and green growth law (n°2015-992) from 17th August 2015 Paris, first city to acquire a responsible public order Unanimous adoption on February 16th, 2016 in Paris Council session, consecrating an already well rooted responsible public order
AXIS 1: IMPULSE ECOLOGICAL TRANSITION FOR A SUSTAINABLE CITY
AXIS 2: BUILD A SOLIDAR CITY
AXIS 3: PARIS, EXEMPLAR CITY
Ambitious goals for 2020 A schema with an annex guide book and 48 « actions sheets » See link below to access the Parisian schema of responsible public order http://www.paris.fr/actualites/paris-adopte-un-schema-de-la-commande-publique-responsable
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ESG criteria at the core of all projects: responsible procurement The results of City of Paris
Our results Between €1.1 and €1.6bn of procurement per year
80% of procurement (in amount) managed by Procurement and Finances Direction
SME contribution (in amount) : 41.4% in 2016
Average supplier payment period: 20 days
292 active markets including a socio-professional insertion clause (average execution rate of 228%) – 369,003 working hours in 2016
Purchasing from « SIAE » and « STPA »: €3Mln in 2016
56.89 % of markets with an environmental clause/ criteria in 2016
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Focus on some components of Paris’ environmental policy
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In October 2007 and December 2012, the Council of Paris unanimously approved the Paris’s Climate Action Plan.
Paris’ Climate Action Plan : Commitments
25% of Greenhouse Gas emissions reduction by 2020 compared to 2004
25% of Energy Consumption reduction by 2020 compared to 2004
25% of Renewable Energy or Recovery in the supply mix by 2020
Adapt Paris to climate change and resources scarcity
75% of Greenhouse Gas emissions reduction by 2050 compared to 2004
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Paris’ Climate Action Plan : Commitments
PLANNING FOR ENERGY EFFICIENCY
10% of Paris in High Energy Performance, 50 000 m² with solar panels
LOW-ENERGY HOUSING, ACCESSIBLE TO EVERYONE
35 000 social housing units renovated, energy poverty reduction
THE SERVICE INDUSTRY IN PARIS, A NEW CHALLENGE
Partnership Commitment Charter for climate signed with 49 major companies: 750,000 tonnes of CO2 eq avoided per year
TOWARDS MOBILITY THAT IMPROVES THE CLIMATE AND AIR QUALITY
De-dieselization of Paris by 2024, -39% of Greenhouse Gas emissions
TOWARDS SUSTAINABLE CONSUMPTION WHICH GENERATES LESS WASTE
Food Waste reduction, City of Paris 1st public purchaser of Organic food in France
CITY OF PARIS ADAPTATION STRATEGY TO CLIMATE CHANGE
No Parisian at more than 7 minutes from a fresh space
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Paris : an eco-city Actions engaged between 2004 and 2017
10 years of actions More than 200 actions engaged including
35 000 Renovated
Social Housing
-39% of GHG
Paris intra-muros
-17 000 t.CO2
in public catering
50 signatories
Paris Climate Action
7% of local renewable
and/or recovery energy production
- 50 000 t.CO2
of waste
Outstanding Administration
- 52 700 t.CO2
-9,2% GHG
2004-2014
+70 ha Green areas open to the
public
- 3636 GWh
2004-2014
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Paris : an eco-city Achievements between 2004 and 2014
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Inaugural Climate Bond issue of City of Paris
• Benefits from a Second Opinion from extra-financial agency Vigeo Eiris (positive opinion and best level of assurance « reasonable assurance ») :
Overall “advanced “ESG performance
Strong contribution of the eligible projects to Sustainable goals
Green Bond Framework in line with the Green Bond Principles
2016 Results :
• 147,9 M€ allocated so far out of 300 M€ nominal amount of the inaugural Climate Bond
• 27 889 t.CO2e/year avoided and 1 600t.CO2e/year sequestrated
• 570 kW peak power of photovoltaic installed (5 000 sqm of solar panels)
• 44 833 MWh saved in 2016, that is 88 904 MWh since 2015
• 2 200 planted trees; 3,4 hectares of green areas created
• 26 417 hours of professional integration validated out of 100 696 hours planned in the public markets
Paris’ Climate Bond 2015
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1. Greenhouse Gas emissions reduction
Public transport : T3 Tramway - Extension of Chapelle-Asnières, work in progress, -10 100 tCO2eq/year at maturity
Public transport : Paris railway stations ring road (surface transport), phase of testing, current evaluation
Soft modes of transport : cycling lanes, under construction, -3 100 t.CO2eq/year
Electric vehicles: implementation of Belib’ charging points, under construction, -1 700 tCO2eq/year in 2020
2. Energy Consumption reduction
Sustainable building: Sustainable social housing (HQE buildings, thermal insulation) - 78 935 MWh/year and - 12 075 tCO2eq/year
financed since 2015
Public lighting: Energy performance market - 9 969 MWh and - 900 tCO2eq global savings
3. Renewable Energy or Recovery in the supply mix
Solar power : solar photovoltaic panels installed production of 513 MWh/year, equivalent to the same figures of electricity
consumption avoided and to - 14 t.CO2eq/year
4. Adapt Paris to climate change and resources scarcity
30 new hectares of Green areas, delivery of 11 000 sqm at ZAC Claude-Bernard – Preliminary studies of other projects launched
20 000 trees plantation (2 200 planted in 2015 and 2016) sequestration of 1 600 tCO2 eq in 2020
Paris’ Climate Bond 2015
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Paris : a responsible city
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Paris New Climate Plan
To achieve carbon neutrality in 2050 Towards a fairer, more resilient and inclusive city
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Carbon footprint / Inner Paris emissions
Inner Paris Inner Paris
Inner Paris
Outer Paris Outer Paris
Outer Paris Outer Paris Outer Paris
Administration
Administration
<2% total
emissions
Inner Paris
emissions
Carbon
footprint
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City of Paris commitments for climate Paris New Climate, Air and Energy Plan project
Compared to 2004
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City of Paris commitments for climate Paris New Climate, Air and Energy Plan project
Compared to 2004
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Evolution of Paris carbon footprint up to 2050
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City of Paris commitments for climate Paris New Climate, Air and Energy Plan project
Climate Plan
Energy
Mobility Living environment
Mobilization
Speech
Nutrition Waste Finance
Compensation
Buildings
Planning
Governance
€
A global action
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City of Paris commitments for climate Paris New Climate, Air and Energy Plan project
Paris 2050 Vision
€ Solar city, 100% renewable energy and actor
of the French renewable
20% of renewable energy produced locally
City with shared, active and sustainable
transportation
End of diesel and petrol vehicles
100% eco-renovated city with low carbon
and positive energy buildings
Accompany the renovation of 1 million housings
City with sustainable nutrition
Spread the « flexitarian » diet among all the
Parisians
City with zero non valued waste and circular
economy
City which prepares the financing of the energy
transition
Paris, place of the green finance
City which mobilizes the citizens and the actors of
the territory
Accompany the citizens towards low carbon lifestyles
City which ensures the quality of its living
environment
A socially fair transition
City which associates the actors of its territory with
the governance
City which displays and shares the realized progress
Enlarged follow-up Committee / digital citizen Council
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Blue Climate : annual reporting adopted by the Council of Paris in December each year together with the preliminary budget Published on Paris’ website in January
Objective and performance contracts : document published together with Paris’ budget mentioning the monitoring of indicators related to Paris Climate Plan
Carbon assessment of the administration :
Each year for 80% of the staffs (excluding civil servants and freight transportation, assessed every 3 years)
Each year for the main projects: renovation of social housing and public buildings, fleet management, public lighting performance
Carbon assessment of the City :
Each year, for development in terms of people transportation and buildings
Every 5 years, in detail, for the other projects (2004, 2009, 2014)
International reports :
« Carbon Disclosure Project » (each year)
« Carbon Registry » (each year)
Mayors pact (every 2 years)
Nazca : United Nations’ framework convention on climate change
Paris New Climate, Air and Energy Plan : reporting
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Focus on some components of Paris’ Social policy
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Paris, a caring solidarity based City City of Paris social policy in favor of the elderly
The elderly in Paris: 465 000 persons over 60 years (i.e. 21% of the population) Increase of 13% between 2007 and 2014 25% for the 2040 projection
The 2017-2021 Senior Scheme in Paris
Communication Make the city more inclusive Prevent and accompany the fragilities
A parisian priority :
An effort from the Parisian local authority of 414 M€ (spending noticed in 2016, all expenditures and operators included)
The CASVP, Parisian public institution, leader in the sector
Typical profiles of the parisian seniors
Senior Scheme in Paris
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Paris, a caring solidarity city The social policy of City of Paris for elderly people
The “CASVP”, Parisian public institution, first operator in elderly caring service
At home: Maintaining social life: leisure activities in 67 clubs, subsidized stays, etc. 42 “Émeraude” restaurants for the pensioners ( 695 000 meals / year ) Support at home for individuals with diminishing autonomy (fee-based service) Home nursing services
In residences: 7 850 accommodation places(including 2 100 in “EHPAD”) For this sector, a staff of 1 760 agents and a budget of €122 M in 2017 A high priority given to the lowest income people in the “EHPAD” residences of CASVP :
Low daily prices: €80,98/day (vs 84,96 €/day for other accredited “EHPAD”) 62% of residents in “EHPAD” residences of CASVP have their costs of living covered by social services “APL” convention (PLUS) for the latest “EHPAD” opened or ready to be
An active policy of CASVP to improve the accommodation offer in “EHPAD” residences :
in 2014, 3 EHPAD with a total of 320 places rebuilt or renovated in 2015, 2 new EHPAD delivered, with a total of 210 beds 1 EHPAD under construction (Belleville, reopening in 2019, 94 beds) 1 restructuring project is being studied (A. Groussier, works planned from 2019 to 2021, 164 beds)
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Paris, a kind and solidarity based City The City’s policy in Paris
Social and urban inequalities concentrate mainly in the priority districts of the City’s Policy (QPV) The City’s policy ensures equality between territories and improves the living conditions of the inhabitants of the working class
areas The new city contract signed by the City and the State in 2015 defines 20 areas of priority in Paris, spread between 8
arrondissements : the 10th, the 11th, the 13th, the 14th, the 17th, the 18th, the 19th et the 20th
This new geography for priorities involves 150 400 Parisians, i.e. 7% of the population
The QPVs concentrate 25% of the investments between 2015 and 2020
Cartography of the City’s Policy areas since 2015
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Paris, a caring solidarity city The housing policy of City of Paris
Context of the beginning of the mandate, a strained area : 221 917 social housing park 194 221 seeking family registered on 1st Jan 2015 Social housing rate: 19,1%
Quantified objectives:
20% of social housing in 2020, 25% in 2025 10 000 new accommodations
Qualitative objectives:
Targeting a low-income population Territorial rebalancing between over-equipped and under-equipped districts Reduce unhealthy habitat tackle energy precariousness
€3bn of cumulated investments between 2015 and 2020, including: €2,1bn of subsidies for investments €900 M dedicated to land acquisitions
Parisian social housing in 2015
Social Housing geographical distribution (2015)
as of 1st Jan 2015
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Paris, a caring solidarity city Social housing typology
3 types of social housing: PLA-I (very social) PLUS (social) PLS (social and intermediate)
Source: Bleu Logement, December 2016
Social Housing Ceiling of ressources (childless couple)
Ceiling of rent (€/m²)
Source: Service-public.fr, september 2017
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Paris, a caring solidarity city The housing policy of City of Paris
Focus on 2015 7 388 social housing units financed Implantations arbitrage in favor of districts in lack of social housing
Adaptation to local context
Bleu Logement report Annual monitoring tool
Social housing building delivered in 2015 located at 46 rue de la Pompe (16th)
Geographical distribution of financed social housing in 2015
Social Housing rate
Part within the 7 388 financed social housing in 2015
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Tracking and monitoring the Paris actions
Bleu Logement report Bleu Climat report CSR report
Annual reports:
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Examples of projects for
Paris’ Sustainability Bond
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Improving life quality in unprivileged areas (example)
Cartography of 3 early childhood equipments
What you will finance:
3 childhood facilities in priority neighbourhoods (QPV: Quartier Prioritaire de la
Politique de la Ville) of the 20th district will be created
Programmes - 182 cradles, 4,805 m², including: Dénoyez Nursery : 50 cradles, 630 m² Lagny-Davout Nursery : 66 cradles, 1,350 m² Saint-Blaise multi-user facility: 66 + 33 cradles, 2,825 m² . . . . . . . . . . . . . . . . . . . . . . . . . .
2015-2020 Goals : 5 000 additional nursery places Territorial balance
. . . . . . . . . . . . . . . . . . . . . . . . . .
Priority Neighbourhoods (“QPV”):
. . . . . . . . . . . . . . . . . . . . . . . . . .
Investment: 17,6 M€
Plan of the future Davout-Lagny nursery
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Favor the access of populations in difficulty to the essential services (example)
Projected ground floor plan
What you will finance :
Renovation of the EHPAD in Belleville intended for a population suffering notably from cognitive troubles (Alzheimer)
Capacity : 94 beds
. . . . . . . . . . . . . . . . . . . . . . . . . .
Delivery : Q4 2019
. . . . . . . . . . . . . . . . . . . . . . . . . .
Situation : 180 rue de Pelleport, Paris 20th
Priority district of the City’s Policy (QPV)
Total investment : 17,5 M€
Thermal solar panels, modernization of the boiler room, vegetated roof, etc.
Energetic consumption divided by 2 :
Target: 140 kWhEP/m² /annum vs 289 today
Certification BBC Effinergie Renovation
Certification NF Habitat HQE social institutions renovation
Front – projected
Front – currently Mass plan
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Energy efficiency Decrease the energy consumption (example)
Renovated heating (rue de Poliveau, 5th arrondissement)
What you will finance:
Renovation of 300 thermal centers
Total parc : 2000 heatings
. . . . . . . . . . . . . . . . . . . . . . . . .
Project
Average life decreased from 16 ½ years to 12 ½ years
Rythm for modernization x3 vs. 2008-2014
. . . . . . . . . . . . . . . . . . . . . . . . . .
Deployment schedule : 2016-2019
. . . . . . . . . . . . . . . . . . . . . . . . . .
Energy gain : 20 GWh/year
. . . . . . . . . . . . . . . . . . . . . . . . . .
Investment : 58 M€
. . . . . . . . . . . . . . . . . . . . . . . . . .
Works opening the way to a remote control
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Energy efficiency Decrease the energy consumption (example) + Improving life quality in unprivileged areas
What you will finance : Construction of Davout swimming pool
Equipment :
2 covered ponds of 25 m x 15 m and 25 m x 10 m
Immediate maximum attendance : 625 persons
. . . . . . . . . . . . . . . . . . . . . . . . . .
Delivery : end of 2019
. . . . . . . . . . . . . . . . . . . . . . . . . .
First HQE labelized swimming pool :
Target: 2 800 kWh/m² by pond
(i.e. 40% below the parisian average)
Target : water consumption of 85 L/swimmer
(i.e. divided by two vs the parisian average of 170L)
. . . . . . . . . . . . . . . . . . . . . . . . . .
Investment : 19 M€
. . . . . . . . . . . . . . . . . . . . . . . . . .
Adress : 134 boulevard Davout, Paris 20th
Priority district of the City’s Policy (QPV)
Davout Swimming Pool (20th arrondissement)
Project location
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Clean transportation – Renewable energy Improvement of the quality of air (example)
Vehicle with GNV motorization
What you will finance :
Replacement of 544 diesel vehicles between 2015 and 2020 with GNV or electric motorization vehicles
Target: 544 existing diesel vehicles
188 bins
208 washers
148 vacuums
Deployment schedule : 2015-2020
Environmental gains:
Investment : 76,4 M€
GNV vehicles Eletric vehicles
-85% of NOx issuances -100% of NOx issuances
of noise pollution of noise pollution
100% compatible with BioGNV 100% compatible with green electricity
Eletric vehicles for cleaning
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Clean transportation (example)
Map of the projected extension of the T3b tramway line
What you will finance :
Extension of the tramway T3b
Projet:
. . . . . . . . . . . . . . . . . . . . . . . . . .
Total investment : 218 M€
(of which 50 M€ already financed by the Climate Bond and 60 M€ by
the EIB)
Tramway T3b in the 18th arrondissement
Chapelle-Asnières segment Asnières-Dauphine segment
4,3 km of extension 3,0 km of extension
8 new stations 6 new stations
10 100 tCO2e/year saved 7 050 tCO2e/year saved
Delivery: end of 2018 Delivery: next term
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Social and solidarity economy (example)
What you will finance : « Les Canaux » a place dedicated to social and solidarity economy
Principle :
Renovation of a 1 060 m² building
Remarkable example of a project conducted according to the circular economy principles
Future international showcase of the circular economy and the SSE
. . . . . . . . . . . . . . . . . . . . . . . . .
Deployment schedule : inauguration in November 2017
The site is occupied since july 2017 (Association Les Canaux, C40 Cities,
Yunus Centre, pépinière de Start-up.
. . . . . . . . . . . . . . . . . . . . . . . . .
Environmental contribution:
Works using exclusively reuse materials
. . . . . . . . . . . . . . . . . . . . . . . . .
Social contribution:
Works using massively SIAE
. . . . . . . . . . . . . . . . . . . . . . . . . .
Investment : 2,4 M€
House of the Canaux (19th)
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Appendix
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City of Paris’ Sustainability Bond : Environmental benefits
Project Categories Definition Sub-categories Objectives Sustainability
Benefits
1. Clean
Transportation
Projects aiming at developing low-carbon energy
transport (bicycle, electric vehicles) and public
transport
Public transport : High Quality Transit Line, tramway line
extension, refurbishment of public spaces
Alternative transport: cycling Plan
Electric vehicles: support to the development of electric
cars for residents and professionals, network of charging
stations for electric and GNV vehicles
Reduction of GHG
emissions, due to low-
carbon transport
Climate change mitigation
---
GHG emissions reduction
2. Energy efficiency
Projects aiming at reducing the energy consumption
of buildings and public lighting, while maintaining
equivalent level of service (existing situation or vs.
standard), with performance goals and energy
poverty focus
Buildings: construction of energy efficient, thermal insulation
for buildings (schools, social housing, nursing homes, etc.)
Public lighting and signals: replacement of energy
consuming appliances
Renovation of heating systems
Energy savings
Climate change mitigation
---
Energy savings
3. Renewable energy Projects aiming at developing local renewable energy
production and/or energy recovery
Renewable energy power plants (solar panels)
Geothermal energy
Energy recovery (from wastewater networks, data centres)
Heating network
Increase of renewable
energy production
Reduction of GHG
emission, due to low-
carbon energy use and/or
energy recovery
Climate change mitigation
---
GHG emissions reduction
and energy recovery
4. Adaptation to
climate change
Projects aiming at reducing the impacts of climate
change, especially the heat island effect, through the
expansion of green area surfaces in Paris
New green areas: areas opened to the public, green roofs,
facades and walls
Tree planting programmes
Increase of green areas
and biodiversity in Paris
Adaptation to climate
change
---
GHG emissions
segregation
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City of Paris’ Sustainability bond: Social benefits
Social Eligible Projects Categories:
70
City of Paris’ Sustainability bond: ESG performance indicators
ESG performance indicators:
71
Last trades for 2016-2017
Trade date Type Amount (EUR M ) maturity (Years) re-offer (%) Spread /OAT (bp)
30/03/2016 Public Bond 300 16 1,313 38
08/04/2016 PP 35 22 1,512 34
14/04/2016 PP 26 13 1,03 31
21/06/2016 Schuldschein 50 27 1,499 29,5
22/06/2016 PP 50 14 0,951 29
14/10/2016 Schuldschein 40 25 1,278 26,5
14/10/2016 PP 50 20 1,16 25
09/11/2016 PP 50 20 1,3 25
25/11/2016 Loan 80 25 amort 0,57 -15
TOTAL 2016 681 17,3 1,2 27,4
24/01/2017 Public Bond 300 16 1,705 26
24/08/2017 PP 26 20 1,579 20
25/09/2017 Loan 75 13 amort 0,75 31
TOTAL 2017 401 14,6 1,542 26,5
(*) as of date 10/10/2017
Last trades 2016+2017*
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Contacts and Documentation
- Budget documents :https://www.paris.fr/investisseurs - Sustainability & Climate Bonds: https://www.paris.fr/investisseurs#strategie-de-financement-verte-et-responsable_2
Internet site : http://www.paris.fr/
Contacts :
Hervé AMBLARD +33 1 42 76 35 13
[email protected] Head of Funding
Teddy TISBA +33 1 42 76 80 28
[email protected] Deputy Head of Funding
Yann FRANÇOISE +33 1 71 28 50 62
[email protected] Head of Climate-Energies
and Circular Economy
Frédéric LABURTHE +33 1 44 67 15 11
[email protected] Assistant Deputy Director for
elderly
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Disclaimer
This document is not to be used or considered as an offer to sell or solicitation of an offer to buy any securities, and should not be considered as a recommendation by the City of Paris (“Mairie de Paris") that any recipient of this document should subscribe for or purchase any securities.
Some information or opinions contained in this document (i) have been compiled or arrived at by the City of Paris from sources believed to be reliable, but the City of Paris does not make any representation as to their accuracy or completeness and (ii) are given at the date mentioned in the presentation and are subject to change without notice.
This document is not to be relied upon as such or used in substitution for the exercise of any independent judgment and each recipient must make his or her own investigation as to the opportunity of any investment in the City of Paris.