Sustainable financing of municipal climate investments under consideration of the EU taxonomy
KlimKomInvest
The research project “Sustainable Financing of Municipal Climate Investments under Consideration of the EU Taxonomy” (KlimKomInvest) aims to contribute to the fact that public investments in the future will be financed much stronger than today by sustainable forms of financing in the sense of the EU taxonomy. It is true that the EU taxonomy is not yet directly applicable to municipalities. However, this is precisely what can be expected in the future. The EU, for example, already ties the awarding of subsidies to the fulfillment of taxonomy criteria. Banks are also under pressure, as from 2023 they will have to prove what proportion of their total assets is spent on sustainably financed, i.e., taxonomy-compliant, economic activities (“green asset ratio”).
Sustainable financing of municipal climate investments under consideration of the EU taxonomy
In the project, the challenges for (German) municipalities in the practical application of the EU taxonomy and the Sustainable Finance Strategy of the German government are analyzed and European and international best practice examples are identified. Subsequently, an optimal regulatory framework for municipalities of different sizes will be developed in a stakeholder dialog involving municipalities, public enterprises, development banks, state and municipal supervisory authorities.
The overall aim of the project is to reduce the structural mismatch between supply and demand for sustainable forms of financing.
Difu is carrying out the project in cooperation with various state and development banks, KfW and the Association of Public Sector Banks (VÖB).
