Brussels (Brussels Morning Newspaper) – The European Commission plans to propose to provide more support to firms to invest sustainably and make it more comfortable for them to access the money, Reuters reported.
As reported by Reuters, the plan is part of an effort to streamline the EU’s sustainability reporting regulations – expected next week – and strengthen its competitiveness in the face of increasing competition with the US under Trump.
As part of the plans, the Commission said it wants to increase the guarantee provided via InvestEU, the bloc’s flagship initiative to back sustainable investment, innovation and job creation, by 2.5 billion euros. As a result, it hopes to muster an extra 25 billion euros in public and private investment.
What changes will reduce reporting obligations for businesses?
The project would decrease the administrative responsibility and reporting obligations for businesses looking for that money by up to 25% and by 35% for small and medium-sized businesses, the draft document stated.
In addition to the proposed changes, it means changing the definition of what is deemed an SME, decreasing the amount of data the firms will need to report, and adjusting the frequency of that reporting. The proposed standards would be expected to save 200 million euros for those engaged in the process.
How does the InvestEU programme support EU policy objectives?
The InvestEU Programme offers a European Union budget guarantee to Implementing Partner accredited parties in order to enhance their risk-bearing capacity and hence assist in mobilising public and private investment for EU policy objectives.
In February 2023, the ICO and the European Commission agreed on an arrangement under the InvestEU guarantee programme for up to €75 million. This guarantee package will facilitate ICO financing of up to €150 million for investments in sustainable infrastructure and its industrial ecosystem in Spain and other Member States.
This public investment will also be able to mobilise a minimum of another €150 million from the private sector, such that the public-private partnership programme could amount to €300 million worth of investment in sustainable projects.
