Innovation concept to finance sustainable energy projects

1.5°C is the magic limit – after that, there is no going back. Picture: Unsplash, Mika Baumeister

Climate change cannot be stopped by mere declarations of intent; it demands money, commitment and, most importantly, new ideas for sustainable and clean energy projects. With Bullfinch Asset AG’s Clean-Energy-as-a-Service technology platform, there is a suitable approach to bring the energy shift to the last turn in Europe. The concept behind it can contribute to the vision of Robin Haack, Germany’s 34-year-old financial consultant, founder and CEO.

Platform as a forum for investors and suppliers or developers of green ideas

What was missing throughout the European region until now was the possibility of investing also in projects in the field of decentralized energy transition, in small and medium-sized projects with an investment volume of between €10,000 and €50,000. So far, institutional investors and large companies have focused on large, prestigious projects in which they have invested significant sums.

The problem: large-scale projects in form of gigantic wind farms or solar parks are not implementing the energy transition across the board. Above all the countless small projects are doing so, such as modern heat pumps installed in houses, solar panels installed on roofs or private charging stations for electric vehicles.

The bullfinch “Clean-Energy-as-a-Service-Platform” concept offers a digital and automatic solution. Here, investors, no matter in which dimensions they want to invest money, municipalities as well as real estate developers on the one hand and developers or providers of “green technologies” on the other hand are brought together. Close cooperation is a prerequisite for success. That is why bullfinch cooperates with many local companies that develop, build, sell or rent solar plants, for example, and turns many smaller projects into a project package that large investors such as fund companies or banks are more interested in.

“Democratization” of investments into energy projects.

However, CEO Robin Haack concentrates primarily on small private investors. He wanted to offer them the opportunity to participate in small and large energy projects, even with smaller sums of money and to take advantage of the energy transition. After all, the expectations of the experts are a rise of the volume of investment to several hundred million euro over the next decade. Announcing renewable energy as a promising and economically strong market for the future.

Renewable Energy Production, Global. Source: ourworldindata.org

Everyone should be able to participate, not just big corporations and investors who are financially solid. Moreover, an increasing number of small private investors are looking to invest in sustainable projects. Nowadays, money can be found much more frequently in projects that meet ESG criteria (environment, social, governance). This is mainly due to the growing awareness that people and the environment are threatened by management that is harmful to the environment, anti-social and solely profit-oriented.

Investment in energy projects falls.

That even more commitment is needed shows the share of electricity generated by renewable energy sources, only to cover 3.4% of primary energy consumption (according to the Carbon Brief 2018). One reason for this low proportion could be identified as a decrease in investment in this area.

If this trend continues, the self-imposed climate targets, above all the limitation of the global temperature increase to a maximum of 1.5 degrees by the end of the century, will probably not be achieved. If the now feared worst-case scenario were to occur and the average temperature were instead to rise by 2.7 degrees, this would have devastating effects, as well as in the financial sector.

The finance sector decides and takes responsibility.

That’s why Robin Haack points to the industry’s great responsibility, which is often not yet recognized, when he says: “In terms of awareness of the financial sector’s responsibility when it comes to sustainability, we’re only at the beginning.” All too often, financial institutions focus primarily on the expected returns from a project, rather than evaluating it with an eye to its future prospects in terms of environmental and climate protection. Therefore, it is not uncommon for entire business models to fail, and opportunities to protect our planet are lost accordingly.

Indeed, it is the financial sector that decides whether an innovative idea can be implemented or whether a sustainable energy project can be implemented. It is up to them to fund energy projects or to turn them down. This decision-making authority imposes a major responsibility on the financial world.

The tech platform as a driving force.

The “Clean-Energy-as-a-Service” concept aims to provide new impetus here and open up a way for innovative companies and investors alike to develop, build and offer on the market hardware and software that is helpful for the environment and the climate, whether by selling, renting or leasing.

A platform like the one developed by bullfinch is a way to distribute the funding provided by investors in a way that lands in the right places, even regardless of the banks. These are the people who have set themselves the goal of doing something about the impending climate catastrophe and developing products or services that are suitable for at least slowing down the effects of climate change.