Green Transition Finance – Insight

BVP – Green Transition Finance

Climate change is a very present threat to humanity and there is a real urgency to change how we consume energy and decarbonise the planet.

The estimated financial cost of tackling climate change is truly staggering.  From a worldwide perspective it is estimated that, to achieve Net Zero emissions by 2050, $4 trillion per year will need to be spent on decarbonization initiatives between now and 2030.  Rather than be daunted by the scale of this worldwide challenge, in is incumbent on us to think more locally and focus on what we can do ourselves.

Irelands Climate Action Plan sets out the governments ongoing urgent response to the Climate Crisis with an objective to halve our national carbon emissions by 2030.  Davy in their whitepaper, Investing in tomorrow: Shaping a Net Zero Future published in April 2024, suggest that total spending of €129 billion is required to deliver on Irelands legal binding 2030 Climate targets of which €97 billion will need to come from private debt. Davy estimates that Irish consumers will spend €57 billion on electrical vehicles and home retrofitting during this period.

Climate change provides both a real challenge and a significant opportunity for Irish SMEs.  Irish entrepreneurs and companies must move their businesses to lower carbon models, but this presents significant opportunities for innovators to lead and thrive.

At BVP we have proven experience providing funding solutions (debt and equity) within the green sector, including renewables, behind the meter energy efficiency projects, clean technologies and circular economy technology.

The huge scale of the financial challenge to attain Irelands climate targets is clear, however our experience shows that mainstream funders have a concentration on large scale projects and large corporates and that SMEs find it difficult to achieve the funding required.  Where funding is available from mainstream lenders it is often not at the quantum or on the repayment or maturity terms required by the SME.  In addition, while there are several alternative funders active in the Irish Market, who may be more flexible in terms of quantum and repayment terms, their maturity terms and in particular pricing are often significant issues.

Building on our knowledge of the sector and the challenges faced by companies obtaining appropriate funding support, we have for some time been working on a product to help fund the businesses and entrepreneurs that will help Ireland achieve these critical climate targets.

We have developed a new product called Green Transition Finance.

Our vision for this product is:

To play a fundamental role in stimulating green initiatives and decarbonization projects.
To be a Leading Provider of knowledge based Green Debt Finance in the Irish market.
To accelerate the green transition by providing competitive and properly structured finance.
To increase the competitive standing of Irish businesses on the global stage.

The product is designed to have the flexibility required to meet the needs of the project being financed and is competitively priced.

We are already in discussions with SME’s who will lead the way in decarbonizing Ireland and look forward to helping them and other Irish SME’s find their funding solutions.

Full details of the product and how to contact us to discuss your needs are available on the BVP Website via Funding > Debt