Financing Ambitious Local Climate Objectives

22-09-2017

Implementing ambitious local climate action plans is paramount in the fight against climate change. While sheer aggregated investment volume contained in these plans can contribute meaningfully to the economy, the lack of a comprehensive funding solution undermines their realisation.

The FALCO (Financing Ambitious Local Climate Objectives) project, addresses this problem by developing a financing solution for the climate plans of over 180 Flemish Covenant of Mayors signatories. This so-called FLC Solution was tested at the conceptual level and builds on the results of several previous projects while integrating state of the art knowledge on sustainable energy financing. Unlike other solutions, the FLC solution considers local climate action plans in their entirety instead of adopting a more typical project-per-project view. It places a focus on lifting both financial and non-financial investment barriers and makes use of private capital instead in combination with public budgets. In addition to acting as a scalable pilot to test the FLC solution in the field, FALCO will also develop accompanying policy and other measures to increase demand for investments.

Concretely, the project commits to realize 17 million euros of energy efficiency investments in SMEs and in public and private buildings. However, the possibilities extend much further and are estimated at 250 million € and more. This way FALCO will contribute to the realization of the ambitious climate objectives to which 245 Flemish cities and municipalities have committed themselves.

3E – as a member of the consortium – hosted the project launch, The closing speech was held by Flemish minister Tommelein – Deputy Prime Minister of the Flemish Government and Flemish Minister of Budgets, Finance and Energy.

Project funding period: June 2017 – May 2021

This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 747331.

On the picture, from left to right: Antoon Soete (Manager Strategy & Policy Services – 3E), Geert Palmers (CEO – 3E), Bart Tommelein (Deputy Prime Minister of the Flemish Government and Flemish Minister of Budgets, Finance and Energy), Hein Dirix (Executive Vice President Infrastructure & Environment – Tractebel / ENGIE), Christ’l Joris (President of the Board – ETAP)