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Crowdfunding for a low carbon energy system: addressing major challenges for EU-wide public and private investments in energy and carbon saving measures

Objective

A low carbon energy system is realizable with current proven technologies provided that appropriate investments for installing these technologies are made. The challenge with energy-efficiency measures is that they require high initial investments and are only profitable in the long run. Thus, many SMEs, non-profit organizations and local authorities cannot afford that or simply lack the interest of investing in these types of actions.
bettervest bridges the gap between funding and action. It is the first crowdfunding platform that focuses on energy-efficiency projects from a size of 5.000 to 200.000 Euros and allows the crowd to benefit from the savings generated through the reduced energy consumption. A defined percentage of the savings is distributed to the crowd until the investment plus a previously agreed upon profit has been completely paid back. Additionally, the project owners can use the crowdfunding project as a customer bonding and staff participation measure that rise awareness for their corporate social responsibility activities and increases identification with the firm.
The Federal Ministry for Economic Affairs and Energy (BMWi) estimates that the benefit of energy-efficiency measures in Germany belongs to 27 Billion Euros in 2012 by avoiding imports of fossil energy carriers. McKinsey estimates that again 850.000 jobs could be generated in the energy-efficiency sector in Germany by 2020. Until 2012 around 500.000 jobs have been generated (BMWi 2014). Applied to the EU these numbers should be multiplied accordingly.
bettervest receives in sum a theoretical impact over an average contract period of five years of 3.750 MWh energy-savings and 4.500 tons carbon reductions for every 1.000.000 Euros funded within the crowd. The already funded projects would not have been implemented without the innovative finance instrument of bettervest.
This proposal aims to explore the opportunity to expand bettervest's activities to other European countries.

Fields of science (EuroSciVoc)

CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.

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Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

SME-1 - SME instrument phase 1

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Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) H2020-SMEInst-2014-2015

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Coordinator

bettervest GmbH
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 50 000,00
Address
Schweizer Str. 28
60594 Frankfurt (Main)
Germany

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SME

The organization defined itself as SME (small and medium-sized enterprise) at the time the Grant Agreement was signed.

Yes
Region
Hessen Darmstadt Frankfurt am Main, Kreisfreie Stadt
Activity type
Private for-profit entities (excluding Higher or Secondary Education Establishments)
Links
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 71 429,00
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