Download EMBARGOED UNTIL 9AM GMT 19.3.2015 European investors

EMBARGOED UNTIL 9AM GMT 19.3.2015
European investors propose 12 fixes to achieve €315bn
Juncker Plan investment goal
London, March 19th, 2015
The Institutional Investors Group on Climate Change, which represents more than 100 European
investors worth a combined €10 trillion, has today published a paper proposing 12 fixes which could
significantly increase infrastructure investment across Europe.
The paper follows the launch in January of the EU’s Investment Plan for Europe, (also known as the
“Juncker Plan”), a €315bn (£250bn) scheme to boost private investment in European infrastructure
projects. The Investment Plan for Europe rests on using €21bn of EU money to unlock private sector
capital over the next three years to achieve the €315bn goal. The European Fund for Strategic
Investment (EFSI) is the vehicle established under the plan to mobilise the €315bn.
Achieving the Investment Plan for Europe’s €315bn ambition: 12 fixes, says European institutional
investors have in recent years fallen short of their aim to allocate 8% of total assets to infrastructure
and that their investment in infrastructure projects can be increased – if the conditions are right.
The 12 fixes proposed by investors include:
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Exclude high-carbon projects from funding consideration. The EU’s 2030 framework
must guide all investment support provided through the EFSI. All projects should be assessed
according to their fit with a low-carbon economy.
Consider an EU-level mechanism to mitigate risk from retroactive policy changes at
member state level. Retroactive changes to renewable energy policies have brought low
carbon investment to a standstill in some countries and caused investors to lose billions.
Protection from this risk would restore investor confidence.
Create and publish a set of robust sustainability criteria that will be integral when
evaluating prospective projects for funding. If all projects must pass a rigorous sustainability
evaluation the EFSI can evolve into a signal for high quality assets.
Aggregate infrastructure assets. Pooling infrastructure projects together would help to
attract more potential investors and diversify risk across projects with different risk profiles.
Ensure an independent and commercially astute investment committee. The EU should
consider appointing representatives of the institutional investment community to EFSI board.
Focus on attracting institutional investor capital. With bank debt for infrastructure projects
much reduced, EFSI should be designed to accommodate the rising trend towards
investments made by institutional investors.
Focus on project pipeline expansion, with greater attention given to project development
and construction-phase projects.
National governments should develop a powerful industrial strategy for the development
of low-carbon infrastructure.
Stephanie Pfeifer, Chief Executive of IIGCC, said:
“The Investment Plan has the potential to usher in a new era of low carbon infrastructure investment
across Europe, but to achieve this it must be structured in the correct way. The 12 proposed fixes
provide clear solutions to really scale up investment while also identifying the barriers that have held
investment back in the past. The challenge is a big one: the IEA says $2.2 trillion of investment in
energy infrastructure in Europe is needed to 2035. Investors want to work with the EU to ensure this
plan delivers the transformative levels of investment it is targeting.”
Torben Möger Pedersen, CEO, PensionDanmark, said:
“As a significant private sector investor in European infrastructure – as well as partner alongside the
Danish government in the Danish Climate Investment Fund – PensionDanmark knows what it takes to
make a public-private infrastructure investment fund work. The Investment Plan provides a unique
opportunity to re-shape the European landscape in favour of low carbon infrastructure investment.
The 12 fixes set out what investors need to enable them to play the role the EU envisages.”
Philippe Desfosses, CEO, ERAFP:
“Institutional investors can play a big role in funding new low carbon infrastructure projects across
Europe. Many investors have fallen short of their target allocations to infrastructure and can invest
more. We want to invest more. But we need the right policies. We hope policymakers will take the 12
fixes we propose into account so that the Investment Plan is structured for maximum effect and
delivers the investment Europe needs.”
ENDS
Notes to editors
Achieving the Investment Plan for Europe’s €315bn ambition: 12 fixes, was authored by Martin
Schoenberg, Head of Policy at Climate Change Capital, with input provided by many of IIGCC's
members. Please see the document for a full list.
For further information please contact:
Nathan Williams ([email protected], +44 (0)7709 114557)
About the Institutional Investors Group on Climate Change (IIGCC) www.iigcc.org
The Institutional Investors Group on Climate Change (IIGCC) is a forum for collaboration on climate
change for European investors. It provides investors with a voice on climate change and a platform
from which they can engage with policymakers, investors, sectors and other stakeholders to address
the long-term risks and opportunities associated with climate change. The group currently has 101
members, representing assets of around €10 trillion.
The IIGCC’s objectives are: 1) to encourage public policy solutions that ensure a move to a low
carbon economy and which are consistent with long-term investment objectives, 2) improve company
disclosure/performance on climate change and 3) encourage a pro-active approach amongst asset
owners and asset managers towards climate change.
For further information see www.iigcc.org
IIGCC Membership March 2015
Aberdeen Asset Management
Amundi
AP1 (First Swedish National Pension Fund)
AP2 (Second Swedish National Pension Fund)
AP3 (Third Swedish National Pension Fund)
AP4 (Fourth Swedish National Pension Fund)
AP7 (Seventh Swedish National Pension Fund)
APG Asset Management
ATP
Aviva Investors
AXA Real Estate
BBC Pension Trust
Bedfordshire Pension Fund
BlackRock
BNP Paribas Asset Management
BT Pension Scheme
CB Richard Ellis
CCLA Investment Management
Central Finance Board of the Methodist Church
CF Partners (UK) LLP
Church Commissioners for England
The Church of England Pensions Board
Church of Sweden
Climate Change Capital
Corporation of London Pension Fund
DIP
Dragon Capital Group Ltd.
Deutsche Asset & Wealth Management
Earth Capital Partners
Environment Agency Pension Fund
Environmental Technologies Fund
ERAFP
F&C Management Ltd
Ferrostaal Capital
First State Investments
Generation Investment Management LLP
Greater Manchester Pension Fund
Henderson Global Investors
Hermes
Hermes GPE LLP
HgCapital
HSBC Investments
Impax Asset Management
Insight Investment
JOEP
Kent County Council Pension Fund
Kleinwort Benson Investors
Legal & General Investment Management
London Borough of Islington Pension Fund
London Borough of Newham Pension Fund
London Pensions Fund Authority
M&G Real Estate
Marguerite Advisor S.A.
Mayfair Capital Investment Management
Mercer Global Investments Europe Limited
Merseyside Pension Fund
Mn Services
Nordea Investment Funds
Northern Trust Asset Management
Ohman
OU Endowment Management (OUem)
PensionDanmark
The Pensions Trust
PGGM Investments
Pictet Asset Management
PKA
Platina Partners
Railpen Investments
Robeco
Royal London Asset Management
Sampension
Sarasin & Partners LLP
South Yorkshire Pensions Authority
Tellus Mater Foundation
Temporis Capital
Unipension Fondsmæglerselskab A/S
Universities Superannuation Scheme
West Midlands Metropolitan Authorities Pension
Fund
West Yorkshire Pension Fund
WHEB Group
*The Church Investors Group members:
Baptist Union of Great Britain
BMS World Mission
Charles Plater Trust
Christian Aid
Church of Scotland
CIG South Africa
Friends Provident Foundation
Jesuits in Britain
Joseph Rowntree Charitable Trust
The Lutheran Council of Great Britain
Panapur
Polden-Puckham Charitable Foundation
Religious Society of Friends
Representative Body of the Church in Wales
Roman Catholic Diocese of Plymouth
Roman Catholic Diocese of Portsmouth
Servite Friars
United Reformed Church Ministers Pension Fund
United Reformed Church South Western Synod
United Reformed Church Trust
William Leech Foundation