Assessing the European clean energy finance landscape, with implications for improved macro-energy modelling
Deliverable D3: Study on the Macroeconomics of Energy and Climate Policies
This report, published by the European Commission in March 2017, aims to map and explain the sources of finance and corresponding clean energy investment opportunities that are interacting in the European clean energy finance landscape.
The intention is to provide suggestions on how to usefully incorporate such findings in existing macro-economic models to assess the macro-economic implications of climate and energy policies.
In essence, the report presents a first attempt to map the various interactions which exist and are at play between:
- the sources of finance and their financial instruments used;
- the clean energy investment uses and sectors (clean energy technologies); and
- the influencing factors at micro and macro levels that play a role in determining the size and direction of financial flows.
The end purpose is the integration of such clean energy finance mapping in the (macro-)modelling of the broader economy.
Chapter 2 introduces the various clean energy investment opportunities, focusing on renewable energies and energy efficiency. Per technology type and sector, the chapter briefly summarises (if information is available): (a) some background information on the technology and (b) an indication of the order of magnitude of the investment challenge. As such, the chapter explains the right-hand side column of the European clean energy finance landscape diagram.
Chapter 3 introduces the different public and private sources of clean energy finance in Europe. WHO provides the money, i.e. the various public and private sector actors who take the investment decisions? And HOW (via which key investment instruments/tools) do these actors channel the money towards the clean energy investment opportunities?
Chapter 4 maps the interactions between these sources and the impact on clean energy finance. In essence, this chapter explains what influences the size and direction of the flows from sources to investment opportunities in the European clean energy finance landscape.
Chapter 5 discusses HOW it is possible to influence the European clean energy finance landscape. The assessment here is primarily based on comparing and contrasting the differences/similarities from the domestic climate finance landscapes implemented in Belgium, France and Germany. The comparative analysis aims to highlight those methodological choices, policies and enabling factors that can help explain differences in volumes and directions of flow between the various existing financing landscapes. This analysis emphasises important reasons to track clean energy finance flows.
To download the report, please visit the relevant European Commission webpage at the link below.