The ecological transition and the fight against climate change have become global priorities, transforming the economy and opening up a vast landscape of financing opportunities for green projects.
Companies, public and private entities wishing to invest in environmental sustainability, renewable energy, energy efficiency, and sustainable mobility can now count on an increasingly structured financial ecosystem.
Here is an overview of the main sources of funding for sustainability.
Strategic European and national funds
Supranational and national financing instruments form the backbone of supporting the ecological transition. In Italy, a significant portion of NextGenerationEU's resources, approximately 37% of the total, is dedicated to Mission 2: Green Revolution and Ecological Transition, which finances crucial sectors such as sustainable agriculture, the circular economy, the development of renewable energy, including hydrogen, energy efficiency in buildings, and land protection.
At the European level, Horizon Europe is the European Union's main funding programme for research and innovation, allocating significant funds to research and development projects into low-impact technologies and climate solutions. The LIFE Programme is the EU's exclusive financial instrument for the environment and climate action, funding initiatives for nature conservation, climate change mitigation, and environmental governance.
Furthermore, the InvestEU programme incentivises sustainable investments through guarantees and loans, while the European Structural and Investment Funds (ESIF), such as the European Regional Development Fund (ERDF), support sustainable regional development by including specific green projects.
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Sustainable finance (ESG)
The financial market has developed dedicated instruments that attract private investment focused on ESG (Environmental, Social, and Governance) criteria. Green bonds are bonds whose proceeds are used exclusively to finance or refinance specific green projects, such as those related to energy efficiency, renewable energy, or clean transportation. The Italian government also issues these bonds, known as BTP Green.
While Green Bonds focus on the environment, Social Bonds finance projects with a positive social impact (healthcare, employment), while Sustainability Bonds jointly finance environmental and social projects. Sustainability-Linked Loans (S-Loans) are medium- to long-term bank loans whose terms, such as the interest rate, are tied to the achievement of specific sustainability goals by the borrowing company. Many banks now offer dedicated credit lines and products, such as Green and Sustainability loans, to incentivize the circular economy and emissions reduction.
Energy crowdfunding is a collective financing model that, through online platforms, allows private individuals and small investors to directly contribute to the implementation of renewable energy (such as photovoltaic or wind farms) or energy efficiency projects. This system democratizes green investing, offering opportunities for returns (often through lending or equity crowdfunding) and strengthening the connection between the community and the ecological transition.
It is configured as a concrete alternative to traditional bank credit, allowing startups, SMEs and Renewable Energy Communities (CERs) to quickly raise capital, especially with regards to renewable energy crowdfunding, without a doubt the modality that in recent years has been attracting a great deal of resources, with excellent returns on investment.
Incentives and credits for businesses
Fiscal policies and direct incentives play a crucial role in making green investments more economically advantageous for companies. The National Transition Plan 4.0, now evolving towards 5.0, supports business investments in new capital goods, including those aimed at improving energy efficiency and reducing the environmental impact of production processes, through tax credit mechanisms.
Furthermore, specific calls for proposals, often managed by entities such as Invitalia, offer non-repayable grants for innovative and sustainable investments, especially for SMEs, promoting technological and ecological transformation. Finally, venture capital funds are being created, often with the support of PNRR resources, such as the Green Transition Fund, to invest in the venture capital of startups and SMEs active in the ecological transition and clean technology (Net Zero Technologies) sectors.
Comments (1)
The article presents an interesting analysis of sustainability financing opportunities. However, practical examples would be helpful to better understand how these funding sources work in practice and which projects have actually benefited from them.