Joint IW & vdp Roundtable: Long-term financing of large-scale projects – what is hindering their implementation?

For the energy-efficient renovation of residential and commercial properties for example an annual investment of €438 billion is expected in the EU by 2045. Banks in the EU would therefore have to significantly expand their risk assets in order to meet this demand for loans for the realisation of large-scale projects. However, banks' equity capital may be a bottleneck for this additional demand for credit to implement decarbonisation, as there is in parallel a need for investment in the industrial, transport and energy sectors. A study by the IW calculates an annual requirement of €818.7 billion for the EU.

Due to the emerging equity gap, regulatory issues are coming into focus: How can a balanced framework for financing be achieved? How can a balance be struck between financial stability and sufficient credit supply for the high financing requirements associated with the transformation? And what role can securitisation transactions and covered bonds in particular play in this context?

Programme
12:00 Light Lunch

12:30 Welcome German Pfandbrief Banks (vdp) & German Economic Institute (IW) 

12:35 Prof. Michael Hüther, presentation of IW study on the challenges of long-term financing 

12:50 Roundtable discussion 

13:30 Wrap-up

Place
Representation of the State of Hessen to the EU
Rue Montoyer 21
1000 Brussels

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