In order to meet targets laid down in the Climate Change
Package, the Europe Union and/or Member States need to commit and
source large sums for infrastructure and energy investment.
Conversely given the fiscal/austerity restraints being imposed in
European countries the European Commission has signalled a
recognition that innovative large scale funding solutions are
required to facilitate the investment requirements.
In 2010 the European Investment Bank (the "EIB")
increased its total lending by nearly 40% to €79 billion,
of which €26 billion was for major energy and transport
projects. This level of funding in the area is still not sufficient
to cater for the EU's infrastructure needs Jose Manuel Barroso,
President of the European Commission, unveiled new plans to
establish EU "project bonds" and raise sources of finance
to fund infrastructure projects in his "State of the
Union" address to the European Parliament on 7 September
2010.
