Investment advisory support for EU GREEN ASSIST

THE BACKGROUND

The European Green Deal requires a significant stepping up of green investments in support of the transition to a sustainable and inclusive economy by 2050.

The European Green Deal Investment Plan acknowledges that there is a need for promoting and facilitating investments in the green economy, notably in natural capital and circular economy management, and identified that a significant strengthening of the technical assistance is required to proactively develop high-impact investment pipelines, and to remove obstacles that potential investors face when considering investing in projects addressing or exposed to environmental constraints.

InvestEU was formally adopted in March 2021. It is a budgetary guarantee program, open to the EIB Group, national promotional banks and institutions, and other international financial institutions; it is aimed at leveraging private and public funds to support investments under four policy windows: sustainable infrastructure; research, innovation and digitalization; small and medium-sized companies; and social investment and skills. An overall climate target of 30% of the overall financial envelope of the InvestEU Program and, specifically for the sustainable infrastructure window, a combined climate and environmental target of 60% of the investment under the sustainable infrastructure window, has been put forward.

In this regard, GREEN ASSIST was recently established to provide technical assistance accessible under the InvestEU Advisory Hub that aims to support investments serving the EU environmental policies and legislation, protecting and preserving natural capital and promoting circular economy, for instance investments linked to climate mitigation, climate adaptation, climate resilience, the protection and enhancement of natural capital resources, the sustainable management of natural resources and/or the development of circular economy.

THE PROJECT

In 2023, FINANCE FOR IMPACT was selected in a framework contract to provide services under the GREEN ASSIST initiative. Over the duration of the contract, Consortium partners provide advisory support services to public and private investors and related actors. The advisory support aims to identify, prepare, develop, and implement viable sustainable investments at the project and corporate level, inter alia, by enhancing the capacity of public and private project promoters and financial intermediaries to green their strategies, processes, and systems.

THE RESULTS

Climate change and environmental degradation are an existential threat to Europe and the world. To overcome these challenges, the European Green Deal is expected to transform the EU into a modern, resource-efficient, and competitive economy, ensuring no net emissions of greenhouse gases by 2050. In building the capacity of project promoters and financial institutions to address climate challenges, the GREEN ASSIST initiative provides relevant expertise and knowledge in various sectors.