08.03.2024 Sofia Kasidova: Achieving climate neutrality will require an unprecedented level of investments

Achieving the EU’s goal of climate neutrality by 2050 will require an unprecedented level of investments. This decade will be crucial for accelerating investments in the European Green Deal. This was stated by Sofia Kasidova, Head of Strategic Development and Planning of the Bulgarian Development Bank, for the SeeNews special report “The RES Industry in Southeast Europe”.

Kasidova is part of the working group of the Investors Dialogue on Energy (ID-E) platform, which brings together experts from the energy and finance sectors in all EU countries to assess and upgrade financing schemes under the REPowerEU plan and the European Green Deal.

 “The purpose of the European ID-E platform is to help evaluate and upgrade existing schemes and instruments for financing of energy projects. When necessary, we will also develop proposals for pilot financial instruments, programmes or investment products, provide technical assistance and recommendations for changes to financial or other rules, affecting investments in energy”, also added Kasidova.

A major focus of ID-E’s work at the moment is the identification of obstacles to the financing of energy projects, both at EU level and in the individual Member States. Experts, including also Kasidova, have identified four main groups. Among them are risks related to unreliable markets and legal frameworks, access to capital, lack of resources, use of unproven or immature technologies, etc.

ID-E is expected to develop solutions to attract more investments, specially creating financial and guarantee schemes, including for risk-sharing.

The results of the work of ID-E will be included in current and future programmes within the multiannual financial framework of the European Union and will be the basis for discussions on the necessary investments and the achievement of climate neutrality by 2050.

Sofia Kasidova also shared that the other extremely important initiative, in which BDB is major shareholder, the Three Seas Initiative Investment Fund, has made two very successful investments in our country. They will contribute to the connectivity of Bulgaria with the other member states of the fund, as well as to the transition of the energy market to solar and low-carbon generation.

She recalled that the countries from the Three Seas initiative have a serious need for investments in the field of energy, transport and digital infrastructure, as well as in terms of ensuring the security of critical infrastructure and energy transition.

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