How can local authorities manage the heating transition? Without being able to raise the billions in needed investment themselves, their energy supply companies need a stronger equity base to take out sufficient loans. At a workshop run by FaFin and ICLEI-Europe recently, the concept for a supporting fund was fleshed out and participants agreed on a list of concrete next steps.

Delivered as part of the Turnaround Money II - rethinking municipal finances project and supported by the German environment and conservation ministry (BMUV) as part of the European Environment Initiative (EURENI), the workshop brought together representatives from academia, the financial and insurance sectors, cities and municipal utilities, ministries, and the Climate Protection and Energy Agency of Baden-Württemberg, the southwest state where municipalities have made the most progress with their heating plans compared to the rest of Germany.

The equity problem for municipalities will therefore be felt keenly here, so consideration was given to how such a fund could be launched initially in Baden-Württemberg, in order to identify lessons and roll it out across Germany.

Are you interested in learning more about the discussion? You can find more detail (in German) here and an executive summary (in English) here.