Europe has a €265 million Energy Efficiency & Renewables Fund

ON FRIDAY the European Commission launched a €265 million European Energy Efficiency Fund by utilising money left from a €4 billion EU energy infrastructure fund investments from other parties.

The European Commission (EC) will provide €125 million, with the European Investment Bank (EIB) €75 million, Italian public bank Cassa Depositi e Prestiti (CDP) €60 million and Deutsche Bank €5 million, who will also act as Investment Manager of the fund.

The EC said other European national banks were invited and may join the fund later, with the final amount in the fund dependent also on additional private and public investments and the eventual investment portfolio.

The Fund targets to raise the total volume the current €265 million to around €800 million. A technical assistance facility is also available to support investments pursued under the EEEF.

The new financial facility will be dedicated to co-funding energy efficiency and renewable energy projects, that will reduce energy use or greenhouse gas emissions by at least 20 percent.

EIB President, Philippe Maystadt, said: “We expect the fund to focus on smaller scale investments by local authorities or energy service companies (ESCOs), thereby complementing the larger scale finance that the EIB already offers for energy efficiency investments throughout the European Union.”

CEO of CDP, Giovanni Gorno Tempini,added: “Cassa depositi e prestiti is pleased to cooperate with the European Commission, the European Investment Bank and Deutsche Bank on the innovative product of Energy Efficiency. This is an important issue for Italy, and CDP has a strong commitment to make EEEF a success.”

In 2009 EU member states earmarked nearly €4 billion for co-funding selected strategic EU energy infrastructure projects in offshore wind, carbon capture and storage, and electricity and gas interconnection. The move was part of wider measures intended to kick start the EU economy out of recession.

As reported last year on these pages some €46 million of this fund remained unallocated after the end of the project application, so the EU agreed to use the balance to start this separate fund focused on energy efficiency and renewables, with the new fund having to be allocated by March 31, 2014.

Picture of European Commission by Tiseb

Wednesday 6th July 2011

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