16 March 2010 | Luca Del Buono
Carbon, Climate Change, Energy, Europe

 

While some people are wary to invest within Central Europe, bankers and fund managers have found that renewable projects within the area are starting to see an increase in financial support.

The reasoning behind this was shared at a conference in Prague that concluded last Thursday, which made reference to such causes as additional yield for large banks and greater knowledge in regard to the renewable sector.

Despite the tight credit that remains within Central Europe, financing renewable projects has become more appealing for a multitude of reasons. For starters, locating further energy sources has become quite desirable. Additionally, investors are being drawn in because of the munificent feed-in tariffs and the renewable targets of the European Union that should be met.

Some investors feel that within Europe there is great opportunity to be had, specifically in renewable projects. The success of these projects is evident, particularly in areas such as the Czech Republic, which in 2009 received third place in Europe for the amount of new solar projects taken upon itself. Other attractive areas for future projects seem to include Poland, Slovakia, Romania, and Bulgaria.

A few analysts and investors are stuck on the summit held in Copenhagen in December, however. They have not let go of the fact that no deadline was established to create a fresh climate treaty for 2013, which would take the place of the Kyoto Protocol. Still, though, it appears that money will make its way in 2010 to projects featuring renewable resources, which is to be helpful for the economy. This money is likely to come from financers outside of Central Europe, as the area is starting to grow in interest.

Even though some people might choose not to invest in certain countries because of irregularity, it seems that there is much optimism surrounding the future of financing renewable projects within Europe. The possibility exists that pension and insurance funds will make their way into funding the renewable market. Wind projects are in full force in places like Hungary, the Czech Republic, Poland, and Slovakia.

Banks are looking to expand once more across Europe. If commercial banks can stage a comeback, they will be quite useful in funding renewable projects. Whatever happens, it certainly appears that Europe is heading in the right direction, both environmentally and economically.

Author: Katie Graziano | Climate Action

Image Provided by: the russians are coming | flickr

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