Apr 25 2016

Forms of financing

The idea that ETS Innovation Fund money could be handed out in the form of refundable finance is barely considered in the March 2015 public consultation responses, but it is given serious consideration by the EC, featuring as ‘Option 2’ in its Impact Assessment (see section 8.1.4). Svebio was one of the few organisations to comment on it: “One should consider changing NER financing to an investment support scheme for innovative carbon technologies, and set up an investment fund administered by EIB.” Rockwool is similar: ETS Innovation Fund “needs to be better aligned with other policies and measures where investment efforts are focused on the most cost-effective areas. Good examples can be found in the off-the-shelf financial instruments now being developed to help innovative business models develop in industry as well as in the buildings renovation sector, where public funding (guarantees) and financing are needed to leverage private financing in the European Fund for Strategic Investments (EFSI).”

Scotland Europa: “Its modalities should set minimum parameters which allow packages to be designed to fit projects. This would better take account of the differences for each sub-sector. Flexible risk funding would attract private investment. […] This was shown to work for Scotland (Pentland Firth)”.

WWF + 8 environmental NGOs: “De-risking (venture) capital and debt by grants and loans as a tool to facilitate access and enhance entrepreneurship and the market readiness of low-carbon products and processes [should be an aim of ETS Innovation Fund].”

Estonia: “We suggest to consider the approach where the EIB alone or EIB together with the Member State are co-guarantors of the project. The risks would be shared so that the risk of the Member State will not exceed 50% and will enable the project to receive crucial pre-operation investment.”