Enigin Update - Institutional Investment Vital to EU Roadmap
THE EU needs to work with institutional investors to meet the 2050 targets in their energy efficiency roadmap published this week, the Institutional Investors Group on Climate Change (IIGCC) have stated.
The IIGC feel it is vital for institutional to be considered to shape policies which would encourage the private investment necessary to meet a 80 percent reduction in greenhouse gas emissions by 2050.
Ole Beier Sørensen, Chairman of the IIGCC and Chief of Research and Strategy with the Danish pension fund ATP said: “While the Roadmap and energy efficiency plan provide greater clarity about the European path towards a low carbon future, the emissions reduction targets outlined will not be achieved without focused incentives, a high and sustained price on carbon and credible policy frameworks which stimulate private investment
According to EU estimates outlined in the Roadmap, additional investment of €270bn will be required annually over the next 40 years to move the world towards a low carbon economy. Separate estimates have suggested the private sector will need to provide by far the largest share of this capital at around 85 percent.
It is crucial, therefore, that policy creates incentives for low carbon investments and future funding mechanisms are structured to take the commercial realities faced by investors into account. In addition, the EU and, in particular, its member states must take more determined steps to meet energy efficiency targets.
Regulatory certainty, ambitious cross border infrastructure programmes and well-designed funding mechanisms, alongside firm, non-retroactive policies to support investment in renewable energy will be central to meeting an 80 percent emission reduction target by 2050.
The EU must ensure that climate and budget policy supports a viable low carbon growth path and policy making bodies must work with the institutional investor community to harness its capital and benefit from its expertise.”
Paul McNamara, chairman of the IIGCC Property Working Group and head of Research at PRUPIM said:
“Although it is pleasing to note that policy-makers have recognised the necessity of tackling buildings-related emissions in order to meet this target, increasing the rate of refurbishment on one-eighth of Europe’s publicly-owned building stock from 1.5 percent per annum to 3 percent per annum can only ever make a modest contribution to emissions reduction.
It is imperative that the opportunity to drive energy efficiency in buildings is not lost and that workable, detailed solutions are promoted which effect a fundamental shift in the behaviour of the private real estate market. The IIGCC believes there is now an urgent need for the EU and national governments to enter a meaningful dialogue with the property investment and occupier communities across Europe in order to agree the most effective and least disruptive solutions.”
Enigin have the energy efficiency solutions and products, available exclusively from their network of Enigin Distributors, to enable the public and private sectors to invest wisely to manage and reduce energy use, hence cutting greenhouse gas emissions and energy costs.
Picture by Steve Cadman
