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EC Calls for Tenders: Study on Climate Friendly Investments

Brussels, 25 September 2013

Significant financial resources will be necessary to finance green growth and job creation in the EU as well as to support efforts by developing countries to address climate change. Global competition to attract capital is taking place; the challenge will be to redirect private finance from high carbon investments to low carbon and climate resilient investments.

Sector specific estimates of investment needs have been produced by the European Commission and set out in recent long-term roadmaps, infrastructure development plans, and related impact assessments.

The energy infrastructure package estimates that about €100bn will be needed by the end of this decade for new electricity transmission lines alone. Investment needs for raising the energy efficiency of Europe's buildings is estimated at around €60bn per year. While this amount is significant; it represents around 1% of global GDP and is much smaller than the cost of inaction estimated at several points of GDP. Moreover, capital investment will be partially or totally offset, dependent on energy and carbon prices, by savings in operational costs.

However according to current (2013) figures of Bloomberg New Energy Finance, global capital investments in clean energy (wind, solar, biofuels, and similar alternative energy technologies) dropped in 2012 after 8 years of constant growth.

There is a growing realization that growth of green investments has stalled and action is needed to spur forward momentum again.

The study will:

  • Identify the key factors in a well-developed regulatory framework that can create the right incentives for private sector involvement without burdening public resources.

  • Describe the financial instruments that can best leverage private resources.

  • From the perspective of institutional investors, analyse the current list of financial instruments, highlighting the pro/cons of the instruments and propose concrete enhancements of instruments needed to attract more institutional investors.

  • Advise on the recommended role of the public sector, governments and public banks, in catalysing private sector investments in climate change.

  • Explore the role that the EU Budget can play to mobilise low carbon investments.

The tenderer (in case of a joint tender the combined capacity of all tenderers and identified subcontractors) must have an in-depth knowledge of institutional investors’ needs, requirements, and challenges faced as well as experience in the field of private sector financing of low carbon and climate resilient investments.

Deadline: 28 October 2013

View the ECN Procurement Notice (accessible by ECN Executive Members - Login to View)

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