CIC2030 – Strategies for Financing the 2030 Targets

The EU’s Regulation on the Governance of the Energy Union requires Member States to design national energy and climate plans, the implementation of which requires the mobilisation of significant capital by 2030. While Czechia and Latvia have introduced a package of financial incentives and fiscal policies to stimulate investment in the decarbonisation of their economies, the impact of these packages remains insufficient for meeting the ambitious energy and climate targets set. At the national and local levels, know-how on the structuring of viable projects and experience of mobilising significant private capital are limited, and the Member States need new knowledge and capacity if they are to raise this capital

The project supported Latvia, Czechia, and Germany in planning climate investments more effectively. It analysed the necessary investments to meet climate and energy goals by 2030 and provided an overview of past public and private investments in energy transition, climate protection, and adaptation. The project also developed capital mobilisation plans to bridge the gap between investment needs and available funds.

Project kick-off in Berlin in November 2018. Photo: Samuel Held/GIZ

The results were developed in collaboration with national target groups and ministries, integrating their data and knowledge. This collaboration allows stakeholders to better plan investment needs up to 2030 and more effectively achieve national climate goals.

The project enabled partners to contribute to the EU political debate and report on the implementation of the EU Energy and Climate Package 2030 and international climate commitments. This could encourage the EU and other member states to increase their focus on sustainable climate financing.

Climate and energy investment maps (CEIM) and investment needs and gaps assessments (INGA) were created for Germany, Latvia, and Czechia, covering two sectors each. Prototypical capital raising plans (CRP) were developed for Latvia and Czechia, with investment and policy plans (IPP) and capital raising plans (CRP) specifically for carbon-intensive industries in Latvia (wood processing) and Czechia (district heating).

The project increased awareness and disseminated results at 24 events, including UNFCCC COP events in 2018 and 2019. The EU Commission was also briefed on the project’s methodology and findings.

Details for Czechia

The CEIMs were utilised by Czech ministries to assess the country’s investment needs for its energy and climate goals by 2030. It was found that annual investments of €1.2 billion are needed between 2021 and 2030, about six times more than the currently available funds. The district heating sector, a major challenge for decarbonisation, requires a total investment of €4 billion by 2030. The study, developed with the Czech Ministry of Industry and Trade, was presented at the "Workshop for Sustainable Energy and Transport" organised by the Czech Government Council for Sustainable Development.

Details for Latvia

The 2018 CEIM map of Latvia assessed recent investments related to the country's energy and climate goals for 2030, focusing on central energy supply and infrastructure and the building sector. The map was developed with input from various experts and used by ministries for planning new policies. Follow-up research is planned to map investments in other sectors. The Latvian Ministry of Environmental Protection and Regional Development used the CEIM for a report on energy efficiency and renewable energy investments. The results informed the planning and revision of national energy and climate plans. Additionally, a report on the wood processing industry, Latvia’s most energy-intensive sector, identified potential improvements and was utilised in the national EnergyPath research programme.