From July 1, 2024, young people will have access to a whole new way to save for their future, while contributing to the fight against climate change. Here are the benefits and how the PEAC works.
Following the creation of the law relating to green industry of October 23, 2023, a brand new financial product will be launched this summer, from July 1, 2024. It is intended for young people under 21, offering an opportunity unique opportunity to make their money grow while investing in sustainable projects. Parents can also, from the birth of their child, open a plan and put money aside up to 22,950 euros, like the booklet A. In the same way, the earnings generated are exempt from taxes and social contributions. But this innovative plan, called the Climate Future Savings Plan (PEAC), has other advantages.
Indeed, young people contribute directly to initiatives aimed at mitigating the effects of climate change and promoting a more sustainable future while growing their capital. It is also a financial education opportunity, allowing young people to understand the principles of responsible investment and financial management. Because the choice of management and the choice of product will this time determine the return on the PEAC, which should be more attractive than the Livret A. But the young investor will have to choose between free management or managed management which will nevertheless remain secure. A new risk taking therefore.
The future climate savings plan also offers to block the money until the age of majority, except in exceptional cases, in the event of the holder’s disability or the death of one of the parents, and can be kept until the age 30 years old. Thus, from the age of 18, the young adult will be able to benefit from the amount acquired, by partially withdrawing the desired amount if the PEAC was opened more than 5 years ago, i.e. at the age of 13. The account will be automatically closed if the young person wishes to withdraw the entire amount.
How PEAC works is simple: young people can open a PEAC account and contribute funds to it regularly, whether through scheduled deposits or one-off contributions. The money saved in a PEAC account is then invested in projects and companies that have a positive impact on the environment, in particular those with the Greenfin or ISR (socially responsible investment) label. This can include initiatives such as renewable energy, biodiversity protection, sustainable management of natural resources, and much more. By encouraging young people to save responsibly, the PEAC helps to forge a generation aware of the importance of sustainability, and ready to take concrete measures to protect our planet for future generations.