ENERGY TRANSITION HUBFinance and aid
Sustainable financing
As defined by the Spanish National Securities Market Commission (CNMV), sustainable finance is that which "conditions economic growth towards more humane and balanced development". Sustainable finance can be divided into 3 types:
- Socially Responsible Investment (SRI): investments that use environmental, social and governance criteria as well as strictly economic ones (risk, profitability and liquidity). They also include impact investing, whose purpose is to generate a beneficial social or environmental impact alongside a financial return.
- Ethical banking: banks that carry on their activity following from the outset the criteria of transparency, democracy and sustainability, together with the financial criteria of traditional banking.
- Microfinance: provides basic financial services to groups at risk of financial exclusion (current accounts, debit cards, loans, etc.). The aim is to include these groups in the financial aspects.
In turn, sustainable finance allows the use of different financing products which promote sustainable development:
- Pension and investment funds: investment and savings instruments made up of the assets of a group of individual investors and managed by a management company.
- Green and social bonds: public or private debt issues focused on financing projects with a positive environmental or social impact.
- Social risk capital: investments with sustainability criteria in non-listed companies.
- Microcredits: small loans for entrepreneurship or business development with difficulty in accessing financing, the objective of which is to promote self-employment at the social level.
Newbusiness models
The Basque Competitiveness Institute - Orkestra, in its report OPORTUNIDADES DE LA TRANSICIÓN ENERGÉTICA EN LA ECONOMÍA (Opportunities of the Energy Transition for the Economy) argues that the process of transforming the energy system offers opportunities in different industries, associated with the need for replacement or adaptation of equipment and infrastructures, improvement in human capital, smart specialisation in industries with growth prospects and development of new business models, value propositions and new products and services for energy consumers in different final uses.
Reports by Orkestra and other economic institutions discuss a range of opportunities by specific industry.
- Energy: opportunities for value generation are closely related to the decarbonisation of electricity production, with the development of smart grids and the installation of equipment close to end consumers, in order to develop systems of self-consumption and active demand management.
- Industry: opportunities are linked to the replacement of fuels by others with lower emissions; renovation or adaptation of equipment or replacement by more efficient models; improvements in equipment management and flexibility; upgrading and renovation of buildings (industrial premises, factories, etc.); updating of production processes; optimisation of the logistics chain from an energy and environmental perspective; installation of smart systems for monitoring and controlling energy consumption, etc.
- Transport: the need to replace the current fuel mix with one with lower greenhouse gas emissions will impact the different value chains in the mobility sector, including the different modes of transport and businesses ranging from vehicle and infrastructure manufacture to energy supply and the provision of different services (operation of infrastructures, fleets of vehicles, etc.), offering new opportunities in industries such as automotion, power storage, clean fuel charging infrastructures, etc.
- Residential and services sectors: most of the opportunities in this sector centre on improving energy efficiency in office and residential buildings, including thermal insulation and HVAC and lighting systems.
Other sectors such as agriculture and the waste industry will see opportunities associated with the replacement of equipment and processes with other more efficient ones and, in the case of the waste industry, the creation of new value chains related to the circular economy. In particular, energy valorisation of agricultural waste may provide an important source of income and added value for the industry as well as the material valorisation of the carbon emitted in different processes —not only agricultural or forest-related, but also in industry and power generation.
Aidin the Basque Country, Gipuzkoa and Europe
Autonomous Community of the Basque Country
The Basque energy agency EVE, (Ente Vasco de la Energía), provides information on different aid schemes for projects that will steer companies towards new energy models. You can find information on the various aid programmes on offer at:
GIPUZKOA
The Provincial Government of Gipuzkoa develops aid programmes for municipal authorities, public institutions and businesses. For more information on these programmes, go to the following URLs:
SPAIN
To encourage actions and projects related to energy efficiency and renewable energy, one of the functions of the IDAE is to finance projects and develop and manage public aid programmes that affect the main energy consuming sectors. For more details, go to:
EUROPE UNION
The European Union has a range of financing programmes and opportunities. The list below show some of the available funds. For more information and other financing opportunities, go to the specific funding site.
- European Fund for Strategic Investment (EFSI)
- European structural and Investment Funds (ESIF)
- European Investment Project Portal (EIPP)
- Urban Innovative Actions (UIA)
- "Connecting Europe Facility" funds
- European Energy Efficiency Fund
- European Fund for Energy, Climate Change & Infrastructure (Marguerite)
- LIFE (specific instrument for environment and climate action)
- Fuel Cells and Hydrogen Joint Undertaking
- NER 300
