Financing of climate projects as a service and creation of climate securities for the financial markets

Important results from the project

The project´s aim was to verify a new way of connecting small and medium-sized climate projects with the capital market. The goal was to finance climate projects as a service and create green securities for the financial market. Aim and objective have been fulfilled to a large extent. The goal was to do this for large manufacturing companies. However, this proved not possible during the project period. Instead, project was carried out for a Swedish municipality that bought energy-efficient lighting as a service.

Expected long term effects

We created a contract for a climate project in energy-efficient lighting, signed a contract with a technology supplier and sold "Lighting as a service" to a Swedish municipality. This project was then financed by an external investor. The project was SEK 325,000 and is part of a larger deal of SEK 2.7 million. We expect that this will open up the market for lighting as a service for Sweden´s municipalities. More municipalities will buy lighting as a service and more suppliers will offer lighting as a service. This will reduce municipalities´ energy consumption and carbon dioxide emissions.

Approach and implementation

According to the plan, we had intended to sell our concept to a large manufacturing company. We had existing contact with two multinational companies and had come a long way with them. For various reasons, the sales process dragged on. As a consequence of this, we instead financed a climate project with a Swedish municipality. We underestimated the time required and the influence of "internal politics" at the big companies. It is possible that our current size, and available resources, also negatively impacted our ability to close with this customer group.