The European Parliament on 5 October 2020 approved a set of new rules to support and simplify crowdfunding in the EU, allowing private actors (citizens, SMEs, startups, etc.) to invest in projects at the European level and enabling crowdfunding platforms to provide services across the EU. The new regulation also foresees transparency, communication and security aspects.
This new set of rules could contribute to a green energy transition in several ways. Firstly, transparency and security measures could encourage private actors to invest in green projects since they could better identify the risks and benefits. Also, the rules homogenization could attract private investments by identifying a strategy at the EU level. Moreover, it could help to finance cross-border projects and simplify the importation of good practices (related to crowdfunding) within EU projects.
Finally, the opportunity to invest in green projects at the EU level could also enable a greater communication/visibility of such projects (maybe to import some projects' models and good practices in other countries, regions). Consequently, the new rules for crowdfunding could be a faster way to address the renewable energy transition in Europe.
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