Financial boost to sustainable urban development
With the aim of boosting investment in start-ups and sustainable urban development, the European Commission has recently launched two new financial instuments. One of the aims of these is to encourage the regeneration of urban areas.
Falling under the scope of European Structural and Investment (ESI) Funds, the Commission hopes these funds will encourage Member States to take advantage of revolving financial support, which combines both public and private ressources, rather than to depend on the more traditional grants system. The first of these two instruments is a co-investment facility which makes funds available to both start-ups and SMEs, allowing them to develop business models and attract additional funding. The second is an urban development fund which is available for financially viable sustainable urban development projects including, but not limited to, public transport, energy efficiency and the regeneration of urban areas. Each project can receive a maximum combined public/private investmentof €20 million. Financing is made available via a loan fund which is managed by a financial intermediary. 30% of the funds must come from private capital.