In a new study (available only in French), the Veblen Institute examines the government’s proposal to raise the ceiling on the Livret A savings account in order to fund its climate adaptation plan.

In early October, the Minister for Ecological Transition, Monique Barbut, is due to present an action plan to accelerate climate adaptation and is considering mobilising regulated savings by raising the ceiling on the Livret A savings account from 23,000 to 30,000 euros, which would, in theory, enable up to 10 billion euros to be raised each year.

Funding for the climate adaptation plan can draw on Livret A and LDDS savings accounts, but raising the ceiling will not be enough to mobilise the additional 10 billion euros mentioned. We must also address the issue of the low appeal of these savings accounts under current conditions, as illustrated by the outflow observed since autumn 2025. This outflow is specific to regulated savings, as non-regulated bank savings accounts have seen their outstanding balances increase over the same period.

To address this issue, this note sets out and discusses four possible options:

– Making the Livret A savings account more attractive. Raising interest rates would be counterproductive, as it would make loans to local authorities, which are indexed to the Livret A rate, more expensive. Preferential treatment under inheritance law or a public fundraising campaign along the lines of the "grands emprunts" are possible options, but these are merely complementary or long-term solutions.

– Increase taxation on other savings products, particularly life insurance. Aligning the tax treatment of life insurance with that of other investments (18.6%) would generate revenue of only around one billion euros. Reaching 10 billion would require an overall rate of close to 24% with a risk of capital flight and strong political resistance. This is not a realistic option in the short term.

– Increase the proportion of funds collected that are managed centrally. Increasing the proportion managed by the "Caisse des Dépôts et Consignations" from 60% to 61.7% would generate more than 10 billion euros for targeted jobs.
– Strengthen the conditions attached to decentralised management. As regulated savings benefit from public guarantees, access to these funds should be subject to more specific conditions: a clear classification of adaptation investments, annual loan volumes by category, and greater transparency regarding the allocation of loans.

Recommendation:

The quickest and least costly solution is to increase the proportion of centralised savings managed directly by the Caisse des Dépôts et des Consignations (CDC). Even a modest increase in the centralised share from 60% to 61.5% would redirect nearly 10 billion towards a targeted allocation, channelled directly towards public adaptation objectives. It is important to avoid negative effects on the balance sheets of the banks that currently manage 40 per cent of the funds collected; to this end, the increase should be phased in gradually and apply only to incoming funds, until the new allocation formula is reached.