POLICY RECOMMENDATION 9: #GreenFastTrack - The Green EU Company Booster
Do you want to found a #green #EU #company? à Join the #Green Fast Trach Program piloting in 2022! #EUGFT à greenfasttrack.eu
Problem addressed
The European Green Deal currently faces implementation hurdles. Particularly, creating and operating a green company in the EU is too burdensome.
Policy Recommendation – Idea and Goal
In short: Facilitate the creation of EU green companies to speed up the green transition
The idea is to establish a Web Portal including a de-bureaucratized and fast-track procedure for setting up companies. Furthermore, hands-on counseling for entrepreneurs should be provided. This will facilitate and speed up the Green transition for businesses. In the short term, this initiative will lead to an increase of green entrepreneurs using digitalization for a green transition. In the long term, the initiative might increase employment and innovative competitiveness while contributing to CO2 reduction.
The role of Germany and Italy
Germany and Italy should serve as pilot member states as the EU’s green powertrain within a bilateral task force. They might function as the EU’s green engine when it comes to facilitating the creation of green companies.
POLICY RECOMMENDATION 10: Matching small investors with small entrepreneurs: a new EU green investment framework
Matching small investors with small entrepreneurs: a new EU investment framework to support green development and secure future pensions #NextGenerationEU #FundingTheFuture #Crowdfunding #Entrepreneurship #PeerToPeer #GrassrootInvestment #StrengtheningTheBackbone
Problem addressed
SMEs cannot access the potential of the green finance market. Green investment options for small investors are limited to big companies, making it difficult to match available funds with green finance options. On the one hand, it is difficult for small investors to evaluate the sustainability of companies. On the other hand, it is difficult for small companies to participate in the ESG rating.
Policy Recommendation – Idea and Goal
In short: Develop a EU investment framework to support the green development and secure future pensions by matching small investors and small entrepreneurs
The idea is to develop a clear, simple, and future-proof standard for green financial products and services, enabling enhanced accessibility for small players (SMEs & small investors) in order to match funds with financing needs. This way, more clarity will be created regarding which activities are in line with the EU’s climate ambitions, and incentives are provided for long-term green investments. In the short term, a market for green financing for SMEs will be created. In the long term, sustainable options for pension fund investments will be created.
The role of Germany and Italy
Germany and Italy could tap into the huge SME and private investors potential by unlocking market-based green funding options and long-term climate-friendly investment opportunities and creating a sustainable and future-proof integration option for pension schemes (public-private pension funds) in both countries. The governments of both countries could serve as “seed investors” and add an institutional contribution to these funds.
POLICY RECOMMENDATION 11: GLOBAL CLIMATE COMPACT (GCC)
Investments, technology, and nature at the core of a #GlobalGreenDeal. #EU invites all countries to partner on a #GlobalClimateCompact to work together towards net zero while promoting trade and economic growth
Problem addressed
Climate change is a global challenge that therefore requires a global solution, going beyond the European level. This raises the question of how Europe can “export” the European Green Deal internationally.
Policy recommendation – Idea and Goal
In short: Promote global coalitions for climate change mitigation and adaptation
A Global Climate Compact (GCC) should promote global solutions and coalitions for climate change mitigation and adaption by internationalizing the European Green Deal. The goal is to focus on international cooperation in order to facilitate and promote buy-in at the global level, shifting the narrative from enforcement to incentive. Specifically, a tool should be implemented that combines carbon price on imports and investments in other countries to support their decarbonization efforts. This way, the GCC will provide a political incentive to partner with the EU and make joint investments in research, innovation, and on projects for technology- and nature-based solutions.
The role of Germany and Italy
Both Italy and Germany have a domestic interest in promoting international cooperation as well as climate change mitigation and adaptation. They should therefore take on a leadership role and invite other countries to join the Global Climate Compact (GCC).