Background information

On the proposal of Barbara Trachte, Secretary of State for Economic Transition, the Brussels government has approved the creation of an Economic Transition Fund. The aim of that fund is to support companies that opt for economic transition by using models that are more resource-efficient.

In particular, it will help companies with the need to become energy efficient. The fund, managed by finance&invest.brussels, is one of the measures of the Brussels Region's economic transition strategy: "the Shifting Economy".

Content of measure

The Economic Transition Fund is a complementary tool for achieving environmental objectives on the one hand and offering economic opportunities to Brussels-based businesses on the other. The fund's mission is to finance businesses that opt for economic transition by introducing low-carbon, circular or regenerative economic models. This transition fund will have access to a budget of €10 million from the Climate Fund.

Finance&invest.brussels, is in charge of its management. The distinguishing feature of the fund is that it aims to go beyond the financing solutions currently offered by finance&invest.brussels as part of its investment strategy, by accepting greater risk, either in terms of the duration of the financing (up to 10 years), or in terms of the proportion of the project financed (up to 100%), or in terms of the deferral of capital repayment in the case of loans (up to 36 months).

Specifically, the Economic Transition Fund will finance enterprises through loans, bank co-financing, quasi-equity debt or minority stakes in the capital of the enterprises.

The investments of the Economic Transition Fund are minimum €80,000 and maximum €1.5 million.

Use of measure

The use of the measure is not publicly stated.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
Local / regional government	Regional funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Unknown	Unknown
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: N/A

Involvement

The involvement of social partners is not known.

Views and reactions

Both employers' association UCM and Unizo are proponents of measures related to the promotion of sustainable production, "The Shift" within Brussels and Belgium as well as the transition fund specifically.

Sources

• 22 February 2023: Investeer in het verkleinen van uw ecologische voetafdruk en geniet van een financiering vanaf € 80.000 (www.finance.brussels)