Français
Graphic

ENERGY CITIES' PROPOSALS FOR THE ENERGY TRANSITION OF CITIES AND TOWNS

3.2 Collect local savings and invest them in sustainable local energy projects
Rethink financing solutions

The problem at hand

Local actors’ traditional financial resources for energy transition are drying up. Public funding is becoming rare and banks, who are supposed to provide alternative solutions to public financing, are short of funds. Learning that their savings have been used for feeding international speculation rather than local jobs has undermined citizens’ trust in banks. The amount of savings potentially available at local level, however, still represents a significant share of wealth, but it is not sufficiently invested locally.
The term “short distribution channels” is used for both food (increasing local production) and energy (local renewable energy). We must now invent “short bank channels” that reinstate traceability between the savers and the local energy solutions their money is to finance. It is a new opportunity for financing  projects  and  restoring  confidence between lenders and borrowers, working in close co-operation.

Proposal

Make bank loans accessible to territorial investors: households, housing companies, small energy producers.
This could be done via a local savings bank, a co-operative/ethical bank or a traditional bank willing to earmark part of its savings for local projects. Citizens are already offered the possibility of supporting local authorities by insulating their dwellings or using their bikes. Why not give them the possibility of using their savings for financing local projects? This would be good for social and territorial cohesion, wouldn’t it?

Conditions for success

  • Demonstrating local public willingness to seek new solutions to the problems encountered.

  • Ensuring good relations between local authorities, SME representatives, bank organisations and groups of citizens.

  • Encouraging citizens’ initiatives and communicating on alternative solutions.

  • Offering an attractive yield as well as acceptable borrowing conditions.

  • Improving the transparency of (and advertising) the savings-financing channel.



Share

Cities and towns that show the way

separator
You are here: Energy Cities, Local authorities in energy transition. > English

About us
In a nutshell
Governance
Members
Team
Jobs
Internships
Come and meet us
EU Policy
Join
How to join
Why we joined
Actions
Initiatives & Campaigns
Projects
Workshops
Webinars
Annual Conferences
Study Tours
Resources
Energy transition: our proposals
Best practices from members
Publications
EC INFO Magazine
Newsletter
Blog
Media
Press releases
Articles
Communication tools

 
Addresses Energy Cities - Besançon Energy Cities - Bruxelles