The European Commission adopted new infrastructure investment plan boost Europe's Energy, Transport and Digital Networks, with 50 billion Euros worth of investments in key infrastructure projects. The so-called ‘Connecting Europe Facility' supports the goals of the Europe 2020 Strategy, and strives to complete the European single market by encouraging investments in smart, sustainable and fully interconnected energy, transport and digital networks.

The Connecting Europe Facility is an innovative financial instrument which seeks to multiply the outreach of the EU budget, by using EU Project Bonds to mobilise long-term private investments, to reduce the risk for third party investors. It is an additional measure to that taken by the European Investment Bank, of increasing its total lending in 2010 by nearly 40% to a record 79 billion euro (26 billion euro of which went to major energy and transport projects). This additional measure is taken because Europe's total infrastructural finance needs are not being met in the post-financial crisis climate.

The Connecting Europe Facility has a total budget of 50 billion euro to support trans-European infrastructure. Of this, the energy sector will receive 9.1 billion euro, the transport sector will receive 31.7 billion euro, and the digital services sector will receive 9.2 billion euro.

The aim of the Connecting Europe Facility is to meet the EU's core energy policy objectives of competitiveness, sustainability and security of supply, for 2020 and beyond. It will do so by supporting interconnections in energy, in the form of grids and pipelines, which will lead to an integrated energy market and cost-effective transportation of renewable energy sources across Europe.

A number of trans-European priority corridors have been identified for gas and electricity networks, as well as oil and carbon dioxide transportation. To give support for these projects to be developed the EC intends to provide the necessary market-based incentives and direct EU co-funding, streamline permit granting procedures, as well as to facilitate regulatory treatment of projects to ensure that financial returns are in line with risk incurred.

For more information on the new Infrastructure Investment Plan please click here.

To download the proposal for EU Regulation on establishing the Connecting Europe Facility please click here.

For more information on the EU Project Bonds please click here.