Delivering on the European Green Deal A Private Sector Perspective 2025

TABLE 6 Recommendations: financing green investments Challenge Recommendations Public sector Private sector Simplified and standardized funding application process –Continue reviewing existing processes for funding applications and develop one standardized process. –Identify specific exceptions from standard process as necessary. –Develop a standardized set of documents to support the application process. AI-powered digital platform with centralized funding management –Develop a central knowledge database with clear classification of funds and eligibility criteria including an interface for direct application to relevant funding. –Ensure easy tracking of application, including estimated timelines. –Develop an EU database of all applications and past decisions. –Use AI in application screenings and to match funding applications with available funding options and proactively point applicants to the right funding based on submitted information. ETS (Emissions Trading System) revenue allocation to climate action –Mandate 100% allocation of ETS revenues to climate action. –Allocate revenues to projects within the EU, prioritized based on the principle of equal access to affordable energy. CBAM revenue allocation to climate action –Mandate 100% allocation of CBAM revenues to climate action. –Allocate revenues to projects targeting decarbonization of supply chains outside of the EU. Risk sharing through collaboration –Establish consortia composed of financiers, insurers and sectoral investors targeting specific technology, subsector or sector investments. –Invest small but at scale to reduce risks. –Make greater use of transition plans to help catalyse financing for climate investments of suppliers and SMEs. Enablement of public funding –Engage in public-private dialogue to design funding mechanisms to support priority areas. –Assess the effectiveness of public funding use in the decarbonization of industry sectors. –Feed back to the public sector through regular dialogue focused on the efficiency of financial support. Supply chain decarbonization –Use offtake agreements to guarantee stable investment returns on green projects. –Agree within sectors to offer more favourable purchasing contract terms to suppliers committed to climate action. –Share solutions and resources with supply chain partners to support their climate action, e.g. Environmental, social and governance (ESG) data collection and analysis tools, regulatory advisory, etc. –Co-finance supply chain partner training on sustainable practices, solutions and regulation.the market for green products until they reach price parity with higher carbon alternatives.144 Executives point to the fact that to become the market-maker for sustainable solutions, the EU needs clear demand signals through targets for green products and improved procurement policies.145 Despite these challenges, the EU’s funding mechanisms have the potential to drive significant progress in the green transition if they are made more accessible, with clear qualifying guidance and transparency. The EU’s public funds, when combined with private sector capital, can provide the necessary financial support to scale-up green technologies and accelerate the transition to a low- carbon economy. Surveyed companies see Europe as the top location for net-zero investments, slightly surpassing the US.146 Streamlining access to the EU’s funding therefore holds a promise of providing a much-needed boost to the EU’s attractiveness for renewable and net-zero technology investments. Delivering on the European Green Deal: A Private Sector Perspective 25