Smart Finance for Smart Buildings Initiative

Transcription

1 Smart Finance for Smart Buildings Initiative Renovate Europe Campaign, 22 February 2017, Brussels

2 WHAT pieces of legislation on Energy Efficiency?

3 THE "SMART FINANCE FOR SMART BUILDINGS" INITIATIVE MAJOR GOALS More effective use of public funds Assistance and aggregation De-risking

4 The "Smart Finance for Smart Buildings" initiative is built on: 315 bn EUR (23 % for energy) 17 bn EUR for energy efficiency

5 The "Smart Finance for Smart Buildings" initiative is built on: EEFIG: The Energy Efficiency Financial Institutions Group Established in active participants from 100 organisations

6 Barriers to energy efficiency financing: High upfront investments Sometimes long payback periods Lack of evidence on performance data Fragmentation/transaction costs/lack of standardisation Complexity of financing and preparing projects The market is not "readable" for financiers, not "visible" for investors Financing products do not reflect the EE fundamentals

7 EEFIG recommends taking actions for:

8 More effective use of public funds Financially viable projects Market failures, vulnerable consumers Financial Instruments Grants/ tax schemes Leverage effect Revolving nature Competitiveness and quality Tailor made Off-the-shelf EU level Targeted support to solve specific market issues

9 More effective use of public funds Capacity building actions to further deploy Financial Instruments (e.g. FI Compass, SEI Forums) Develop flexible energy efficiency and renewable financing platforms Goal: deploy attractive financing products to final recipients 3 key elements: Up-scaled EIB debt financing via EFSI A risk-sharing mechanism A technical expertise and assistance

10 More effective use of public funds Favour public investments in energy efficiency: Analysing the impact of public accounting rules on the market for energy performance contracting (task force) Update of the Eurostat guidance before late spring 2017, as appropriate

11 Aggregation and Assistance Reinforce EU Project Development Assistance (PDA) Encourage local/regional one-stopshops PDA provides access to: Project Promoters (e.g. cities) Investable and aggregated projects Energy Performance tracking Work supervision Contact Audit Decision Financing solution

12 De-risking Energy efficiency financing, a win/win situation also for financiers and investors: More reliable cash flows Increased asset value Risk reduction increased business opportunities Refinancing opportunities open source database to disclose real performance data of real investments projects A consensual framework for the underwriting of investments for energy efficiency

13 DEEP: DE-RISKING ENERGY EFFICIENCY PLATFORM DEEP is the largest, pan-european, open source evidence base for energy efficiency project investments in Europe:>7.000 projects already!

14 DEEP will bring to financiers, investors and project developers: A better understanding of the business case behind energy efficiency investments A better risks assessment through high quality and credible data framework A tool to benchmark projects or portfolios of projects

15 Payback per Measure Avoidance costs Energy savings Others, e.g. additional benefits

16 EEFIG s ENERGY EFFICIENCY UNDERWRITING GUIDANCE - objectives Help bridge the gap between the technical world and the financial world Commonly accepted framework and language for underwriting energy efficiency projects Covers both the multiple sources of value from energy efficiency investments and the risks

17 Thank you! Timothée Noël Policy Officer Energy Efficiency Unit DG ENER, European Commission 17 #EnergyUnion