The project is completed. The Climate Investment Capacity (CIC) project addressed challenges related to climate investment and it built new capacities in Latvia, the Czech Republic and Germany for this purpose. The starting point of the project was existing knowledge and experience in the field of climate investments and its mapping, which was transferred to other contexts with the help of implementing partners and adapted to the respective national circumstances.
The project is completed. The project supported the public and financial sectors in Latvia, the Czech Republic and Germany in planning future climate investments in a more targeted manner. Together with representatives of the partner governments, the project partners analysed which investments are required for the three countries to achieve the climate and energy goals by 2030. The project also provided an overview of the public and private investments in energy transition, climate protection and climate adaptation that have taken place to date. As a last step, the partners developed capital procurement plans to close the gap between capital requirements and the currently available investment funds.
The products were developed together with the respective national target groups, including the responsible ministries. On the one hand, this covered the needs of the target groups; on the other hand, existing data and the knowledge of the target groups were integrated in this way. Consequently, the stakeholders also became owners of the products and can take them into account in policy decisions. On the basis of the newly acquired knowledge and know-how, the actors will also be able to structure the investment requirements up to 2030 more precisely and to outline them quantitatively, to analyse the status quo and to develop a capital procurement strategy. This enables them to implement the national plans to achieve the 2030 climate goals more successfully and achieve their goals.
Furthermore, project partners and target groups were enabled to contribute to the political debate in the EU and to report about the transparency in the implementation of the EU energy and climate package 2030 and the international climate protection commitments (e.g. as part of the Paris Agreement) and the climate protection expenditure of the EU and the Member States. In the best-case scenario, this could prompt the EU and other EU member states to do more to promote sustainable climate finance.
The EU’s Regulation on the Governance of the Energy Union required Member States to design national energy and climate plans (NECPs), the implementation of which required the mobilisation of significant capital by 2030. While Czechia and Latvia introduced a package of financial incentives and fiscal policies to stimulate investment in the decarbonisation of their economies, the impact of these packages remained insufficient for meeting their ambitious energy and climate targets. At the national and local levels, know-how on the structuring of viable projects and experience of mobilising significant private capital were limited, and the Member States needed new knowledge and capacity if they were to raise this needed capital.
State of Results
- Climate and energy investment maps (CEIM) and Investment needs and gaps assessments (INGA) were produced for Germany, Latvia and Czechia – for 2 sectors each. Prototypical Capital Raising Plans (CRP) were conducted for Latvia and Czechia. Investment and Policy Plans (IPP) and Capital Raising Plans (CRP) were produced for the most carbon intensive industries: in Latvia for the wood processing industry and in Czechia for the district heating industry.
- The project successfully raised of awareness and disseminated the results inside and outside the primary target groups. In total, the project contributed project results to 24 events, including UNFCCC COP events in 2018 and 2019. The EU Commission was also directly briefed on the methodology and the results of the project.
Details on Czechia:
- The CEIMs were directly used by the Czech Ministry of the Environment and the Czech Ministry of Industry and Trade and to the planning and revision of policies implementing the Czech National energy and climate plans (NECPs).
- The 2017 climate and energy investment map of the Czech Republic produced by the project helped understand where the country stands in terms of needed investment in meeting the country’s 2030 energy and climate targets. The project was able to show that between 2021 and 2030, the investment needs to reach EUR 1.2 billion annually. This is about six times higher than was previously assumed.
- The district heating sector of the Czech Republic is one of the most challenging sectors for decarbonization. In its assessment of the district heat sector decarbonization opportunities, the project laid out the path of a gradual transition to ecological solutions, with total investment of EUR 4 billion until 2030. The short- to mid-term solutions include mainly natural gas, which shall be gradually replaced by other, carbon neutral technologies in the medium to long term. The study was co-designed with the Czech Ministry of Industry and Commerce and presented at the specially organized “Sustainable Energy and Transport workshop” of the Government Council for Sustainable Development Committee of the Czech Republic.
Details zu Lettland:
- The 2018 climate and energy investment map (CEIM) of Latvia produced by the project helps to understand where the country stands in terms of existing investments towards achieving the 2030 energy and climate targets. The CEIM map analysed two sectors important for Latvia: the central energy supply and infrastructure and the building sector. The Latvian map was developed jointly with experts from the Ministry of Economy, Riga City Council, Latvian Development Finance Institution ALTUM, Latvian Environmental Investment Fund, Ministry of Environmental Protection and Regional Development, European Bank for Reconstruction and Development (EBRD), Latvian Municipalities, Riga Technical University and the Latvian Forest Industry Association. The map results were used by the Ministry of Environmental Protection and Regional Development and the Ministry of Economy. They plan to carry out follow-up research on mapping investments for other sectors as well.
- The Latvian Ministry of Environmental Protection and Regional Development used the Latvian investment map for a report summarizing the investments in energy efficiency and renewable energy projects in Latvia. The results were also used for the planning of new policies and revision of policies implementing the NECPs by the Latvian Ministry of Economics and the Latvian Development Institution ALTUM.
- One of the products is the assessment of the wood processing industry, as the most energy intensive industrial branch of Latvia. The report contains an overview of energy efficiency benchmarks and an analysis of several Latvian wood processing companies with the aim of identifying the most promising areas for improvement. The project also analyzed investments made for the branch decarbonization during the last 10 years, new potential projects, and financial incentives of Germany from which some elements could be replicated in Latvia. The results of the analysis have been used and discussed in the framework of the national research programme EnergyPath.
Updated: February 2023
Countries: Czech Republic, Germany, Latvia
Project duration: 09/18 - 02/21
Funding: 568,113 €
Target groups: Governments, Investors, Public sector
Institute for Climate Protection Energy and Mobility (IKEM)
Czech Technical University in Prague (CVUT), Riga Technical University (RTU)
Mrs Aleksandra Novikova, PhD
Organisation: Institute for Climate Protection, Energy and Mobility (IKEM)
Address: Magazinstr. 15-16
Tel: + 49 (0) 30 408 18 70-12
The European Climate Initiative (EUKI):
This project is part of the European Climate Initiative (EUKI). EUKI is a project financing instrument by the German Federal Ministry for Economic Affairs and Climate Action (BMWK). The EUKI competition for project ideas is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. It is the overarching goal of the EUKI to foster climate cooperation within the European Union (EU) in order to mitigate greenhouse gas emissions.
For more information on the EUKI: www.euki.de