EMBARGOED UNTIL 9AM GMT 19.3.2015

European investors propose 12 fixes to achieve €315bn

Juncker Plan investment goal

London, March 19th, 2015

The Institutional Investors Group on Climate Change, which represents more than 100 European investors worth a combined €10 trillion, has today published a paper proposing 12 fixes which could significantly increase infrastructure investment across Europe.

The paper follows the launch in January of the EU’s Investment Plan for Europe, (also known as the “Juncker Plan”), a €315bn (£250bn) scheme to boost private investment in European infrastructure projects. The Investment Plan for Europe rests on using €21bn of EU money to unlock private sector capital over the next three years to achieve the €315bn goal. The European Fund for Strategic Investment (EFSI) is the vehicle established under the plan to mobilise the €315bn.

Achieving the Investment Plan for Europe’s €315bn ambition: 12 fixes, says European institutional investors have in recent years fallen short of their aim to allocate 8% of total assets to infrastructure and that their investment in infrastructure projects can be increased – if the conditions are right.

The 12 fixes proposed by investors include:

  • Exclude high-carbon projects from funding consideration. The EU’s 2030 framework must guide all investment support provided through the EFSI. All projects should be assessed according to their fit with a low-carbon economy.
  • Consider an EU-level mechanism to mitigate risk from retroactive policy changes at member state level. Retroactive changes to renewable energy policies have brought low carbon investment to a standstill in some countries and caused investors to lose billions. Protection from this risk would restore investor confidence.
  • Create and publish a set of robust sustainability criteria that will be integral when evaluating prospective projects for funding. If all projects must pass a rigorous sustainability evaluation the EFSI can evolve into a signal for high quality assets.
  • Aggregate infrastructure assets.Pooling infrastructure projects togetherwould help to attract more potential investors and diversify risk across projects with different risk profiles.
  • Ensure an independent and commercially astute investment committee. The EU should consider appointing representatives of the institutional investment community toEFSI board.
  • Focus on attracting institutional investor capital.With bank debt for infrastructure projects much reduced, EFSI should be designed to accommodate the rising trend towards investments made by institutional investors.
  • Focus on project pipeline expansion, with greater attention given to project development and construction-phase projects.
  • National governments should develop a powerful industrial strategy for the development of low-carbon infrastructure.

Stephanie Pfeifer, Chief Executive of IIGCC, said:

“The Investment Plan has the potential to usher in a new era of low carbon infrastructure investment across Europe, but to achieve this it must be structured in the correct way. The 12proposed fixes provide clear solutions to really scale up investment while also identifying the barriers that have held investment back in the past. The challenge is a big one: the IEA says $2.2 trillion of investment in energy infrastructure in Europe is needed to 2035. Investors want to work with the EU to ensure this plan delivers the transformative levels of investment it is targeting.”

TorbenMöger Pedersen, CEO, PensionDanmark, said:

“As a significant private sector investor in European infrastructure – as well as partner alongside the Danish government in the Danish Climate Investment Fund – PensionDanmark knows what it takes to make a public-private infrastructure investment fund work. The Investment Plan provides a unique opportunity to re-shape the European landscape in favour of low carbon infrastructure investment. The 12 fixes set out what investors need to enable them to play the role the EU envisages.”

Philippe Desfosses, CEO, ERAFP:

“Institutional investors can play a big role in funding new low carbon infrastructure projects across Europe. Many investors have fallen short of their target allocations to infrastructure and can invest more. We want to invest more. But we need the right policies. We hopepolicymakers will take the 12 fixes we propose into account so that the Investment Plan is structured for maximum effect and delivers the investment Europe needs.”

ENDS

Notes to editors

Achieving the Investment Plan for Europe’s €315bn ambition: 12 fixes,was authored byMartin Schoenberg, Head of Policy at Climate Change Capital,with input provided bymany ofIIGCC's members. Please see the document for a full list.

For further information please contact:

Nathan Williams (, +44 (0)7709 114557)

About the Institutional Investors Group on Climate Change (IIGCC)

The Institutional Investors Group on Climate Change (IIGCC) is a forum for collaboration on climate change for European investors. It provides investors with a voice on climate change and a platform from which they can engage with policymakers, investors, sectors and otherstakeholders to address the long-term risks and opportunities associated with climate change. The group currently has 101 members, representing assets of around €10 trillion.

The IIGCC’s objectives are: 1) to encourage public policy solutions that ensure a move to a low carbon economy and which are consistent with long-term investment objectives, 2) improve company disclosure/performance on climate change and 3) encourage a pro-active approach amongst asset owners and asset managers towards climate change.

For further information see

IIGCC Membership March 2015

Aberdeen Asset Management

Amundi

AP1 (First Swedish National Pension Fund)

AP2 (Second Swedish National Pension Fund)

AP3 (Third Swedish National Pension Fund)

AP4 (Fourth Swedish National Pension Fund)

AP7 (Seventh Swedish National Pension Fund)

APG Asset Management

ATP

Aviva Investors

AXA Real Estate

BBC Pension Trust

Bedfordshire Pension Fund

BlackRock

BNP Paribas Asset Management

BT Pension Scheme

CB Richard Ellis

CCLA Investment Management

Central Finance Board of the Methodist Church

CF Partners (UK) LLP

Church Commissioners for England

The Church of England Pensions Board

Church of Sweden

Climate Change Capital

Corporation of London Pension Fund

DIP

Dragon Capital Group Ltd.

Deutsche Asset & Wealth Management

Earth Capital Partners

Environment Agency Pension Fund

Environmental Technologies Fund

ERAFP

F&C Management Ltd

Ferrostaal Capital

First State Investments

Generation Investment Management LLP

Greater Manchester Pension Fund

Henderson Global Investors

Hermes

Hermes GPE LLP

HgCapital

HSBC Investments

Impax Asset Management

Insight Investment

JOEP

Kent County Council Pension Fund

Kleinwort Benson Investors

Legal & General Investment Management

London Borough of Islington Pension Fund

London Borough of Newham Pension Fund

London Pensions Fund Authority

M&G Real Estate

Marguerite Advisor S.A.

Mayfair Capital Investment Management

Mercer Global Investments Europe Limited

Merseyside Pension Fund

Mn Services

Nordea Investment Funds

Northern Trust Asset Management

Ohman

OU Endowment Management(OUem)

PensionDanmark

The Pensions Trust

PGGM Investments

Pictet Asset Management

PKA

Platina Partners

Railpen Investments

Robeco

Royal London Asset Management

Sampension

Sarasin & Partners LLP

South Yorkshire Pensions Authority

Tellus Mater Foundation

Temporis Capital

UnipensionFondsmæglerselskab A/S

Universities Superannuation Scheme

West Midlands Metropolitan Authorities Pension Fund

West Yorkshire Pension Fund

WHEB Group

*The Church Investors Group members:

Baptist Union of Great Britain

BMS World Mission

Charles Plater Trust

Christian Aid

Church of Scotland

CIG South Africa

Friends Provident Foundation

Jesuits in Britain

Joseph Rowntree Charitable Trust

The Lutheran Council of Great Britain

Panapur

Polden-Puckham Charitable Foundation

Religious Society of Friends

Representative Body of the Church in Wales

Roman Catholic Diocese of Plymouth

Roman Catholic Diocese of Portsmouth

Servite Friars

United Reformed Church Ministers Pension Fund

United Reformed Church South Western Synod

United Reformed Church Trust

William Leech Foundation