European Fund for Strategic Investments (EFSI): Focus on low carbon, clean energy and resource efficiency investments to maximise both short term wins and long term sustainability
The European Commission President Juncker’s ‘Investment plan for growth and jobs’ is aiming at mobilizing EUR 315 billion of additional investments by 2018. A proposed regulation setting up the framework of the EFSI is currently negotiated in the European Parliament and the Council and its adoption is envisaged for June 2015.
Our organisations consider that this regulation should give clarity on how the fund will contribute to the achievement of EU long-term objectives, its added-value for the EU and the expected benefits for European citizens. There are four priorities at stake:
- The regulation governing the EFSI needs to ensure transparency and accountability of the use of the EU budget, stakeholders’ involvement and a genuine scrutiny over the operations carried out at each stage (development of investment policies, pipeline of projects, selection criteria, implementation).
- The EFSI should focus on projects that simultaneously drive short term economic benefits and long term sustainability. More concretely all projects should bring clear low carbon and energy and resource efficiency added value.
- There is no rationale for the Fund to invest in high carbon energy and transport projects that expose the EU to high risk of carbon stranded assets.
- A fair risk balance needs to be found when employing financial instruments that de-risk private investment by passing the risk to public institutions and taxpayers.