From words to actions with the Financing Tables

To make a sector more sustainable, capital is necessary. Entrepreneurs develop plans to become more sustainable and to start new green projects. To actually implement these and make an impact, they need external financing.  

In 2019, the government and 50 key players from the financial sector came together in the Climate Commitment, which was part of the Dutch climate agreement. These banks, insurers, pension funds, and asset managers committed themselves to the Paris Climate Agreement and the Dutch climate goals set by the government based on it.  

The financial sector indicated that they especially wanted to invest more in the energy transition, as it is an important condition for the sustainability of the economy. Investments from the private financial sector are indispensable in this regard. For this, the government and private financiers must collaborate. 

“In the energy transition, you are dealing with both existing industries and sectors being transformed, as well as new industries and technologies that still need to be developed. Both require significant investments. This calls for a government that develops long-term policies and implements them consistently. And it requires private financial parties to fund this. The challenge is to bring these parties together,” says business developer Myrthe van Dalen of Invest-NL.  

That is why Invest-NL, as a link between government and business, launched the Financing Tables. “Invest-NL is the national financing and development agency, so it is our role to bring these parties together, identify financial solutions, and thereby accelerate the energy transition,” says Myrthe. “We do this, among other things, with the Financing Tables.” 

Myrthe explains that at the Financing Tables, the government, private investors, and financiers, based on concrete scenarios and business cases, explore the obstacles and solutions for sectors in the energy transition. Several topics were discussed. For example, the first financing table focused on bio-based construction; building with renewable, organic materials such as hemp.  

The second Financing Table focused on investing in energy storage and flexibility solutions. These are crucial elements in the energy transition because storage and flexibility balance the more variable generation of renewable energy with the more stable and growing demand for sustainable electricity. “The goal is for the government and the financial sector to jointly look at sectors in the energy transition, learn how to collaborate better, and discover what is needed to bridge the investment gap.” 

The financing analysis 

How do you find out where the problems and solutions lie? Remco van Montfoort explains that the Financing Tables start with a financing analysis. “In it, we answer the question of where investment opportunities are. We study what the total required investments are, whether the business case is positive, what type of capital is needed, and what bottlenecks exist for private financiers and investors. Then we look at what we can do or create to resolve this,” says the team lead for public-private cooperation at Invest-NL.  

“With these insights, we assess where adjustments are desirable to secure much more private financing for the energy transition. That can, for example, be in policy, regulation, or in the financial products that are needed.” 

The Financing Table also clarifies who has the solution for which problem, Remco explains. “Sometimes it's the government, sometimes the private financial sector, and for some obstacles, the government and private financiers need each other. It's great to contribute as Invest-NL, through our knowledge and network.” 

Insight into business needs 

On behalf of the Ministry of Climate and Green Growth, Hannah van Vorselen, cluster leader of Climate Fund and Financing, is involved in the Financing Tables. The idea behind the Financing Tables aligns well with the philosophy of her ministry and the Climate Commitment, according to Hannah.