Stiftung Mercator has established Finance for Transition – Centre for Resilient Economy and Finance, a Berlin-based think tank designed to show how private capital can be strategically mobilized for the modernization and decarbonization of the economy. The centre will be led by Silke Stremlau, one of the most prominent voices in Germany’s sustainable finance market.
Geopolitical conflicts, extreme weather events, and technological disruptions are putting pressure on the economy. This calls for far-reaching modernization of companies – an effort that often fails due to a lack of investment incentives and insufficient coordination between politics, business, and financial markets. Finance for Transition (F4T for short) addresses this challenge by combining academic expertise with practical implementation.
“Despite the many established instruments, access to capital remains a key bottleneck when it comes to improving competitiveness through sustainable business models – especially for small and medium-sized enterprises,” says Dr. Lars Grotewold, Chief Executive Officer of Stiftung Mercator, describing a central economic policy challenge to which F4T will contribute solutions. The new think-and-do tank will therefore systematically identify the structural barriers that hinder the mobilization of private capital on the part of companies and investors. In the initial funding phase, Stiftung Mercator will provide €7.1 million over five years.
Solutions for the Heat Transition in Municipalities
“To remove these obstacles, we bring together financial markets, companies, policymakers, academia, and civil society,” explains Silke Stremlau, Managing Director of F4T. “We will translate between worlds and build bridges.” She gained experience with this approach during the previous legislative period as Chair of the German Federal Government’s Sustainable Finance Advisory Council. In addition, she led the pension fund Hannoversche Kassen, served as an authorized officer at Bank in Bistum Essen, and was a partner at imug Consulting.
Stremlau and her team will consolidate and apply existing knowledge on transition finance to advance the decarbonization of the economy. F4T will also develop practical, pre-competitive solutions – for example in the area of the municipal heat transition. At present, many municipal utilities face a challenge: local savings banks or cooperative banks are often unable to provide loans of the required scale, while for large institutional investors the projects are too small. One possible approach is to bundle projects involving several municipal utilities – an option that, however, entails regulatory and organizational challenges. New forms of cooperation are needed to address these issues.
PRESSCONTACT
Lothar Kuhn | Director Communications
T +49 201-245 22-36 | lothar.kuhn@stiftung-mercator.de
CONTACT F4T
Silke Stremlau | Chief Executive Officer
T +49 170-7766273 | stremlau@finance4transition.de
ABOUT STIFTUNG MERCATOR
Stiftung Mercator is a private, independent and non-profit foundation that operates on the basis of scientific expertise and practical project experience. Since 1996, it has been committed to fostering a solidary and participatory society. To this end, it supports and develops initiatives that improve opportunities for participation and strengthen social cohesion. Stiftung Mercator advocates for a capable and democratic Europe, a rights-based digital transformation of the state and society, and a resilient, socially balanced climate policy. These objectives can only be realised within a liberal democracy one that Stiftung Mercator seeks to defend and strengthen – as expressed in its motto: #StandingUpForDemocracy. The foundation is active in Germany, across Europe, and globally. It maintains a strong connection to the Ruhr region, home to the founding family and the foundation’s headquarters.
