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Financing the energy transition: “Green Finance” program begins | climate


The Climate and Energy Fund promotes climate-friendly investment and its program

Vienna (OTS) Energy transition and mobility cannot be financed without private capital. A calculation by the EU assumes that by 2030 another 260 billion will have to be invested in climate protection projects in order to achieve the EU’s climate protection goals. Private and institutional investors who want to invest their money in the capital market can make a key contribution to climate protection by choosing sustainable projects. In order to promote climate-friendly investment opportunities, the funding program “Green Finance” of the Climate and Energy Fund supports profitability calculations along with crowdfunding projects and green bonds. The total budget is 1 million euros, funded by the Ministry of Climate Protection.

Federal Minister Leonore Gewessler: “We must get out of our dependence on oil and gas. This means we must invest massively and rapidly in the expansion of renewable energy and implement energy efficiency measures. Any project that contributes to these goals is urgently needed. Green finance is a contribution important to cover the financial conditions for the transition to energy and mobility. ”

Managing Director of the Ingmar Climate and Energy Fund Höbarth: “With our funding program, we want to help major sustainable projects to take advantage of the opportunities offered by the financial market. The demand is huge. Climate protection and climate change adaptation projects are required on the financial market, and with the program Our Green Finance is accelerating the road. ”

The “Green Finance” funding program is being launched for the second time this year. A total of 13 projects were applied for funding in the 2021 call. One of these projects – to give an example – is currently crowdfunding funding for photovoltaics with the help of the financing (around 20,000 euros). Through the project in Burgenland, a 1 MW PV system and production will be achieved. Participating citizens invest in renewable energy and receive a portion of the income in the form of loan and interest repayments or can purchase clean electricity.

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Another project in the previous year supported a cost-benefit calculation for the 60,000-euro school ventilation system. As part of the project, 150 to 200 schools with 8 classes each in all of Austria will be equipped with ventilation systems. Ventilation systems are operated with renewable electricity to be generated by PV systems. Once the project is implemented, the heating energy requirements for each class will be reduced by about 6.5 MWh / year. With 800 grades, this corresponds to savings of 3,000 tons of CO2 per year.

Details of the 2022 Green Finance Program

Economic project development

A major challenge in the development of large investment projects is the detailed presentation of feasibility and profitability – in other words, projects must be “bankable” for the capital market. As part of the funding program, project developers get support in creating business plans for potential investors to receive transparent information.

Assistance and casual expenses for green bonds and crowdfunding projects

One obstacle when placing climate protection projects on the financial market is the costs, for example for certification, capital market prospectus or platform fees. As part of the green climate and energy fund finance program, 50% of these additional costs are covered, thereby reducing the overhead costs of green bonds and crowdfunding projects. As a result, more projects make it to the market and expand the existing range for investors. The target group of the program is large projects with a volume of up to 50 million euros that are implemented in Austria. Submissions are possible between April 28, 2022 and February 28, 2023 (12 pm).

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Regarding the Green Finance 2022 program:

Green Finance 2022

Questions and contacts:

Climate and Energy Fund
Mag. Katja Hoyer
Press and public relations
+ 43/1 / 5850390-23
katja.hoyer@klimafonds.gv.at
www.klimafonds.gv.at

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