European low carbon infrastructure projects (WP1282)

This conference addressed the challenges faced by policymakers and potential investors alike in developing European low carbon infrastructure projects.

Key points:

• Governments and the EU are not providing the regulatory clarity and long term policy stability required to reassure potential investors. Coherence is urgently needed to remove policy uncertainty and attract essential investment.
• Low carbon assets are well suited to prudent investors as they can provide robust and stable returns.
• Institutional investment in low carbon projects has trebled in recent years. The number of renewable energy funds is also increasing and will continue to do so.
• Funding has decreased since the financial crisis but a significant funding gap from banking withdrawal has not materialised.
• Innovative financing structures can kick-start markets and help establish the strong project flows that encourage other capital funding. They provide ratings uplift that is good value for money but they cannot turn bad projects into good ones. The structures available will evolve and refine over the next decade.