Transcript the Deep Green initiative

Energy and Managing Authorities
EMA network meeting
DEEP GREEN Initiative
EIB development areas for
Energy Efficiency
Brussels, March 2015
1. DEEP Green.
Technical
Assistance
DEEP Green Initiative
Banks
Compartment
Public sector
Compartment
ESCOs
Compartment
Utilities
Compartment
 New EE products.
 Aggregation & de-risking.
 More lending to EE.
2
2. DEEP Green – Banks compartment.
 Goal: Incentivising commercial banks and other EIB financial intermediaries to
address the energy efficiency sector as a distinct segment.
Private Finance for Energy Efficiency (PF4EE)
www.eib.org/pf4ee
3
2.1 PF4EE - Objectives
 The purpose of the PF4EE Instrument is to provide access to
adequate and affordable commercial financing for Eligible EE
Investments targeted by schemes developed by Participating
Countries to implement their National Energy Efficiency Action Plans
(“NEEAPs”) or other programmes in line with EU Directives.
 The two main objectives of the PF4EE Instrument are:
(i) making energy efficiency lending a more sustainable activity across
European financial institutions by incentivising them to address the
energy efficiency sector as a distinct market segment; and
(ii) increasing the availability of debt financing to Eligible EE Investments.
4
2.2 PF4EE - Structure
 PF4EE supports eligible EE Investments targeted by schemes
developed by Member States by providing 3 components:
 EIB financing with long tenor, specific reporting requirements and flexible
allocation rules. (The PF4EE Energy Efficiency Loan);
 Up to 80% coverage of credit losses on a loan by loan basis up to a given
amount (The PF4EE Risk Sharing Facility) ;
 A technical training and consultancy services aiming at supporting EE
financing at FI level (The PF4EE expert Support Facility).
5
2.3 PF4EE – Eligibility criteria
 Banks
 Private sector financial institutions or public sector institutions that operate on
market terms.
 Sound financial standing and robust credit assessment systems.
 Investments




In line with Member State EE priorities.
In line with EU Directives.
In line with EIB EE eligibility criteria
Eligible under an EE programme/scheme.
 Beneficiaries
 Final Recipients targeted by Participating Countries’ NEEAP.
 They may include, inter alia, natural persons, home-owner associations,
enterprises, public institutions/bodies and any other legal entities undertaking
Eligible EE Investments.
 Loans
 Maximum amount EUR 5 million and maximum tenor 20 years
 Fixed repayment schedule (no revolving loan), with a capped grace period
6
2.4 PF4EE - Risk protection
 Risk Sharing Facility will cover up to 80% of losses on a loan by
loan basis up to a maximum amount set at the Expected Loss level
of the targeted portfolio.
 It is intended to achieve regulatory capital relief for financial
intermediaries, but subject to confirmation at local regulatory level.
7
2.5 PF4EE – Technical assistance
 Expert support to be provided would be defined individually for each Financial
Intermediary but with three objectives :
(i) ensuring the actual lending to Eligible EE Investments within the framework of the
PF4EE Instrument takes place,
(ii) developing capacity to make energy efficiency lending sustainable within the
concerned Financial Intermediary and
(iii) guaranteeing the correct reporting of the impact of the EE Investments supported by
the PF4EE Instrument.
 The technical assistance will be cover the following areas:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
Staff training on energy efficiency;
Development of energy efficiency products;
EE Loans portfolio development;
Appraisal of energy efficiency investments;
Risk analysis of individual projects and programmes;
Reporting on energy savings and CO2 emissions;
Energy audits.
8
2.6 PF4EE – Potential EMAs participation
9
3. DEEP Green – Public sector compartment.
 Goal: Facilitating access to public sector counterparts to long-term funding for
the financing of EE projects and/or to support MS EE programmes for EE
(including for residential homes), through “limited/non-recourse” and/or “offbalance” structures, where possible.
10
4. DEEP Green – ESCOs compartment.
 Goal: Developing the ESCO market in the EU, in particular the “energy
performance contracting” market, by providing limited/non-recourse re-financing
structures for the ESCOs.
11
5. DEEP Green – Utilities compartment.
 Goal: Developing re-financing structures based on securitisation or comparable
financial solutions together with utility companies to mobilise from their balance
sheets the financing of EE measures for small end-consumers.
12
Contacts.
Christopher Knowles
Head of Division
Climate Change and Environment
[email protected]
Tf: + 352 4379 8 7306
Manuel Dueñas
Deputy Head of Division
Climate Change and Environment
[email protected]
Tf: + 352 4379 8 7215
13