BVI, the German investment funds association, has proposed a new fund vehicle for the EU with the aim of cushioning the economic impact of the pandemic and securing the bloc’s climate goals.
Based on the Ucits framework, the ‘European Impact Fund’ (EIF) model intends to invest in ecological and social projects on a long-term basis.
Until now, these kinds of sustainable projects in Europe have been financed solely using the EU’s own budget, BVI highlighted in a statement.
According to BVI, EIFs could also be used to provide capital for small and medium-sized businesses across the EU.
Thomas Richter, chief executive of BVI, said: “Many EU countries will struggle to revive their economies in the coming years and at the same time make them more sustainable.”
The proposed new vehicle could raise billions from the private sector for investment in the EU, Richter claimed.
“Investor demand for appropriate ESG investments is high and private capital from EIFs could be made available to the economy faster than funds from EU public funding sources,” he added.
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