Commission launches consultation on "Europe 2020 Project Bonds" to fund infrastructure

New EC paper demonstrates growing support for green infrastructure bonds

A draft consultation paper from the European Commission today calls for a scheme to support companies issuing bonds to finance large-scale infrastructure projects.

The 'Europe 2020 Project Bonds' initiative would see the EC risk-sharing with the European Investment Bank or other financing partners, enabling them to provide guarantees or loans to support such bonds.

The paper echoes the findings of a CCC ThinkTank report published late last year entitled Green Infrastructure Bonds: Accessing the scale of low cost capital required to tackle climate change which argued their development was important: to access the sheer scale of capital required for our low carbon transition; to reduce the average cost of capital; to create a credible, low cost exit for construction phase capital, as well as for the longer term project finance debt held by banks with constrained balance sheets; and to match stable long term returns from operational infrastructure with the growing liabilities held by pension funds and insurance companies.

Visit the European Commision website.

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Commission launches consultation on "Europe 2020 Project Bonds" to fund infrastructure

New EC paper demonstrates growing support for green infrastructure bonds