In the new 2007-2013 funding period, the European Commission in cooperation with the European Investment Bank and the Council of Europe Development Bank have launched the program Joint European Support for Sustainable Investment in City Areas (JESSICA) as one of three new initiatives. The aim is to better use
structural funds through the establishment of revolving urban development funds, to include private capital in the projects, and to make use of the experience and skills of private investors with innovative financing schemes. First funds within the initiative have been set up since 2009. Thus, fund models for financing the mobilization of brownfields have received a new impetus. Opportunities and limits of different types of funds will be explored in the paper.
First, a typology of different fund models will be introduced. Thereby, motives and aims of using these financing tools for site recycling are discussed. An overview of existing funds and experiences with certain types of funds is given.
Second, based on results of Monte-Carlo simulations that have been executed within the REFINA research project “Sustainable Land Management Hanover”, major general conditions and design elements of funds for the revitalization of brownfields are analyzed. It is shown that in many contexts a strong public participation will be essential in order to mobilized brownfields, but that on the other hand tools how to win private capital – also on the fund level – for a property fund. In this case the appropriate design of the fund management constitutes a major challenge. The right incentives have to be set and the public goals to be protected. Some of the issues connected with this problem are further explored.