Investment

Mofiso

Financing solutions for mitigation projects

Mofiso aims to build a financing module for ECOSPEED* Region that suggests financing solutions for planned projects (e.g. green bonds in case that the volume of planned investments is large enough to be bundled under a green bond) and builds capacity on finance sources and access formalities for cities.

Limited access for investments in climate protection projects

Across Europe cities have set up action plans against global warming and want to implement the planned projects / problems. Due to financial support from governments/EU and based on political push from citizens to politicians, cities are able to prepare action plans but they have problems with the implementation of the planned projects due to missing investments and missing knowhow about the financing possibilities.

The demand for investments in climate protection projects is huge. Investments are needed in all sectors:

  • Public buildings (Isolation, heating systems, etc.)
  • Households (building efficiency)
  • Industry (production of goods and services, waste handling)
  • Transport (modal split, public transportation, etc.)
  • Local energy production (solar, wind, biomass, etc.)

But cities normally do not know what kind of projects are interesting for external investors and how they can be aggregate in specific financing vehicles, such as green bonds.

The challenge: rising awareness of cities about existing financing options

With an additional module for the software ECOSPEED Region that gives the cities an overview on the financing options they have, it will be possible to accelerate the speed and volume in implementing climate protection project all over Europe (ECOSPEED clients).

With the new financing module for the software ECOSPEED Region, cities can:

  • Check if the issuance of a green city bond makes sense (bundling of planned projects)
  • Check if some projects can be financed through result-based finance
  • Check if some projects generate carbon credits that can be sold
  • Identify national and EU funds and funding window that could financially support the chosen projects (+ access modalities)
  • Check the benchmark for return on investment that investors normally expect from certain project types that are planned through ECOSPEED Region.
  • Understand their options for climate finance training modules (both workshops and online knowledge sources) and to submit projects to the “matchmaker project” of Climate-KIC.
  • Identify local or sectoral experts that that can support cities in terms of financing such projects.

* About ECOSPEED

ECOSPEED Region is a web-based software solution for GHG accounting and planning for cities and is currently used by more than 1600 cities in Western Europe. The main benefit of this solution is that – based on a national model – each municipality gets a basic model that estimates GHG emissions with a deviation of maximum 10% from the real level. Based on own data a city can then improve the model and also use it to plan measures and scenarios up to 2050. The outcome of this are detailed action plans for hundreds of cities. Most of the cities with such an action plan do not have the own money to implement the planned measures and do not know how to access external investments.