FINANCING
FRAMEWORK
PROFITABLE
TO ALL
The European Union is committed to becoming the first climate-neutral bloc in the world by 2050. This requires significant investment from both the EU and the national public sector, as well as the private sector.
Here is an excerpt from the Sustainable Europe Investment Plan, the investment pillar of the European Green Deal : "Risk-sharing between public and private investors can effectively address market failures that hamper the financing of sustainable infrastructure and innovation-driven transition".
But how can we ensure that we are investing down the right road when it comes to sustainable mobility infrastructures? Is it enough to simply invest in the right technology? The right energy? And all in a world where disruptive innovations can turn every strategic plan on its head?
In this context, changes to tax/subsidy systems are needed, to ensure the incentives are climate and environmentally friendly, and to raise the necessary funding to invest. Yet, public funding alone will not be enough. We need to tap into private investment by putting green and sustainable financing at the heart of Europe’s investment chain and financial system.
Ursula von der Leyen,
President of the European Commission.
Challenges and opportunities
When it comes to business activity, how do we reconcile the immediate constraints imposed by competitors with the long-term vision required to ensure a company's long-term viability through innovation? There's a trade-off here between innovation and product life-cycle. A notch higher still is the trade-off between long-term investment and innovation, given that the lifespan of infrastructure assets is often measured in decades and their environmental, social and economic sustainability should be assessed as early as possible in the planning and preparation cycle. This needs to cover both financial and nonfinancial factors across interdependent projects, systems and sectors throughout their lifecycles
IN PRACTICE
Because the challenges of the European Green Deal require actions across policies, sectors and stakeholders, Movin'On aims to multiply synergies around a financing
framework to facilitate and stimulate the public and private investments needed for the transition to a climate-neutral, green, competitive and inclusive economy.
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