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Climate investment capacity (CIC2030): Climate finance dynamics & structure for financing the 2030 targets

The Regulation on the Energy Union Governance requires the EU Member States to design integrated national energy and climate plans to ensure the EU’s 2030 energy and climate targets are achieved. The implementation of these plans demands the mobilization of significant capital by 2030.

Czechia and Latvia introduced a package of financial incentives and fiscal policies; their impact is not yet enough to achieve the targets. Know-how on structuring viable projects and experience with significant private capital mobilization are limited and the countries need new knowledge and capacity to raise it.

Germany has been a frontrunner in terms of decarbonizing its energy portfolio. Due to dynamic policy development and investment support, Germany is on track to achieve the renewable electricity target. Some studies suggest though that to achieve other energy and climate targets, the country needs to apply more efforts.

CIC2030 aims to address that challenge and build new capacity. The starting point is already existing knowledge and know-how in Germany which the project will update and then transfer and adapt to national circumstances in Czechia and Latvia with help of implementing partners.

The central outcome are the skills of the public and financial sector to address the investment challenge in the focus countries. Building on a learning-by-doing approach, CIC2030 will produce:

1. analyses of investment need to reach the 2030 climate and energy targets,

2. investment maps to track public finance and private investment flows into climate and energy transition actions, and

3. capital raising plans to close the gap between the need and the current investment flows.

CIC2030 will co-design these products with national target groups thereby addressing their needs and incorporating their data and knowledge so that they could co-own and imbed the products into their decision-making.  These actors will therefore be able to better detect necessary low-carbon investment opportunities and support them, contributing to successful completion of the national plans. They will be able to inform the EU policy discourse about their transparency towards the implementation of the EU Energy and Climate Package 2030, international climate commitments e.g. EU “National Determined Contributions” under the Paris Agreement, as well as spending EU and national public budgets on climate-related action. This could inspire the EU level and other EU member states’ decisions on promoting sustainable finance.

PROJECT FUNDED BY:

The European Climate Initiative (EUKI):

PROJECT DURATION:

From September 2018 until December 2020

PROJECT BUDGET:

60 960 EUR

SCIENTIFIC LEADER OF THE PROJECT:

Agris Kamenders

PUBLISHED:

04.12.2018.

MORE INFORMATION:

PROJECT PARTNERS:

From Latvia:
Riga Technical University

From other countries:
Institute for Climate Protection, Energy and Mobility (IKEM), Germany
Czech Technical University in Prague (CVUT), Czech Republic