EE-19-2014 - Improving the financeability and attractiveness of sustainable energy investments
Specific challenge: Sub-optimal levels of investment in sustainable energy (in particular energy efficiency) are linked to a lack of trust of investors and financiers in the financial viability of sustainable energy measures, a lack of capacity in the public and private sectors to structure their projects, split incentives (e.g. rental buildings), and a lack of large-scale successful flagship projects. New bank capital requirements have decreased banks´ lending capacity and willingness to invest in the sustainable energy sector, which is still deemed by many to be risky
The financial sector needs to be convinced to develop new financing products and practices that can respond to the constraints of the market.
Scope: Project proposals and activities should foster dialogue with and between financial market actors, standardisation and valuation entities, industry, public authorities, consumers and property owners. They should lead to development of new business models and financial products, ensuring synergies of public and private finance.
- Proposals focusing on the development of frameworks for standardisation and benchmarking of investments, such as labelling and standardisation of sustainable energy investments / portfolios, or valuation techniques integrating the 'green value' of buildings. Proposals integrated in a broader approach such as socially responsible investment or 'green buildings' should focus on the energy component.
- Proposals targeting public institutional investors (e.g. public or semi-public pension schemes) in order to increase the share of their funds invested in sustainable energy, or to develop specific funds or investment products.
- Proposals aiming to create EU and national sustainable energy financing platforms to organise dialogue with the relevant stakeholders and (among others) develop roadmaps, propose improvements in the legal frameworks and develop template documents and contracts leading to a better understanding of the market. Proposals must include a clear action plan to communicate across Europe towards potential replicators. The mechanism for knowledge sharing between countries will be established by the Commission services.
The Commission considers that proposals requesting a contribution from the EU of between EUR 0.5 and 2 million would allow this specific challenge to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.
For all proposals, at least three legal entities must participate in the action; each of the three legal entities shall be established in a different eligible country; and all three legal entities shall be independent of each other. However, proposals aiming to create national sustainable energy financing platforms may be submitted by one entity.
Expected impact: Proposals should lead to reduced uncertainty as regards investments into sustainable energy in terms of increased investors' confidence and trust. Further, relevant projects should deliver innovative (and relevant) asset valuation methodologies agreed by the market and/or standardised descriptions of sustainable energy investments or measures/contracts and/or labelling schemes or harmonised frameworks for sustainable energy investments and/or National strategies for financing sustainable energy investments.
Type of action: Coordination and Support Actions
 Basel III