The European Commission has launched a report on using private money to pay for climate change projects.
The report, which was released today, gives policymakers within the EU tips on how to raise private cash for sustainable schemes.
The focus is how to encourage financial investors from the private sector.
The report says: “Because of the enormous scale of investments required for combating climate change along with constrained public sector resources, the mobilisation of private sector capital is essential – in the developed world as well as in the developing world.
“To date the global response has too often been limited to discourse on the development of special (public) funds, like the Green Climate Fund.
“Instead, this project looks at the nature of investments required and the most effective and efficient ways in which private capital can be geared towards climate-friendly investments.”
The report called ‘Shifting private finance towards climate-friendly investments’ looks into what finances are needed for a low-carbon future and what might prevent investment in them. It also explores current investments and where they’ve come from. The paper also shows what incentives which can be used to help bring in private cash, without burdening public resources.
The EU budget, policy and regulations are explored to see whether anything could be amended to help encourage investors.
Sean Kidney, CEO of the Climate Bonds Initiative and co-author of the report, said: “This gives EU policymakers more than enough options to give a boost to sorely needed green infrastructure in the EU.
“The shorter-term policy options for the EU proposed in the report are all about making climate-friendly assets more attractive for institutional investors.”