Download Shift to a low-carbon economy

Funding mechanisms
for Energy Efficiency
2014-2020
An engine for growth and jobs:
EU funds for Energy Efficiency
Budapest, 6th November 2013
Ágnes Kelemen
Klimapolitika
Cohesion policy 2014-2020*
*Slides 3-6 and 8-9 courtesy of European Commission DG REGIO
Allocation of funding for European regions
More developed regions
100
Transition regions
Less developed regions/MS
500
90
15,8
%
80
11,6
%
450
400
70
350
60
300
50
250
40
30
68,7
%
307.1
200
150
20
100
10
50
0
0
72.4
119.2
Thematic objectives
1.
2.
3.
4.
5.
6.
7.
Research and innovation
Information and Communication Technologies
Competitiveness of Small and Medium-Sized Enterprises (SME)
Shift to a low-carbon economy
Climate change adaptation and risk management & prevention
Environmental protection and resource efficiency
Promoting sustainable transport & removing bottlenecks in key
network infrastructures
8. Employment and support for labour mobility
9. Social inclusion and poverty reduction
10. Education, skills and lifelong learning
11. Increased institutional capacity and effectiveness of public
administration
Concentration of ERDF for 2014-2020*
Research and Innovation
SMEs competitiveness
Low-carbon economy
(Energy efficiency and
renewable energy)
ICT
Developed regions
Transition regions
Less developed regions
12%
6%
60%
60%
20%
20%
60%
45
%
20%
15%
No more ceiling for investing in EE in housing
(currently maximum 4% of ERDF)
38%
44%
Investments in the low carbon economy
– Promoting the production and distribution of RES
– Promoting EE and RES use in enterprises
– Supporting EE, smart energy management and RES use in public
infrastructures, including in public buildings, and in the housing sector
– Developing and implementing smart distribution systems at low and
medium voltage levels ("smart grids")
– promoting low-carbon strategies for all types of territories, in particular
for urban areas, including the promotion of sustainable multi-modal urban
mobility and mitigation relevant adaptation measures
– promoting research in, innovation in and adoption of low-carbon
technologies (ERDF only)
– promoting the use of high-efficiency co-generation of heat and power
based on useful heat demand
Integrated sustainable urban development
•
•
•
•
•
•
•
Minimum 5% of ERDF funding, synergies with ESF should be sought
Management and implementation at city level
Indicative list of cities in Partnership Agreement
Urban Development Platform comprising 300 European cities
Delivered through Integrated Territorial Investment to combine funding
from several OPs or priority axes to support integrated investment
Integrated strategies to address economic, environmental, climate and
social challenges
urban-specific sectoral investment priorities:
– promote low-carbon strategies for urban areas,
– improve the urban environment,
– promote sustainable urban mobility,
– promote social inclusion through supporting the physical and economic
regeneration of deprived urban areas
Implementation principles
• Ensure that public funding complements private investments,
leveraging it and not crowding it out
• Consider creating value for energy savings through market
mechanisms before public funding (energy saving obligations,
energy service companies (ESCO)…)
• Financial instruments - to be used where potential for private
revenue or cost savings is large
• For physical investment, grants to be used primarily:
– to address market failures
– to support innovative technologies
– to support investments beyond cost-optimal EE performance
Financial instruments
• "Off the shelf“ (standardised) instruments: under development in EC
– Provide standard terms & conditions for set of predefined
financial instruments
– 4 potential instruments, including on "loan for energy efficiency
and renewable energies in the residential building sector”
(renovation loan)
• "Renovation loan":
– Financial intermediary = public or private financial institution
(including IFIs), to contribute with its own private fund for a
minimum of 15% (at market conditions)
– Follow professional best practice
– Have appropriate management capacity & track record in
financing operations in energy/construction sector
• Financial instruments may also be developed by the Member State
Energy efficiency in the PAs and OPs of MS
PAs of MS submitted so far
– High allocation to climate change, often above required amount,
but difficult to see where funding will go (EE, RE, sustainable
transport?)
– EE main focus on SMEs and buildings, sometimes transport
– Energy efficiency is often weak at level of targets (e.g. targets
for RE and GHGs mentioned, but not for EE)
– Low carbon economy often features as cross-cutting priority in
TOs 1, 3, 5, 6, 7, 8, 9, 10 and 11, but integration is often
insufficient, especially in the proposed investment priorities and
there is further scope to integrate TOs and coordinate funds
– Strong integration with TOs 1, 3 and 10 more typical of
countries with more developed regions
PAs of MS submitted so far
– Indicators, monitoring and target setting is weak
– Tracking of climate related expenditure not mentioned
– Weak integration of the sustainable development principle in
general and of climate change specifically
– Sustainable urban development usually also focuses on climate
mitigation
Energy efficiency in the PA and OPs of Hungary
Hungarian draft Partnership Agreement
Strengths
– Energy Efficiency Fund planned
– Separate Environment and Energy Efficiency OP foreseen
Weaknesses
– Low financial allocation to TO4
– Weak integration with planned investments in SMEs and
competitiveness (TO3)
– Weak integration with social inclusion and poverty (TO9)
– Weak on indicators and on the contribution of ESIF to national targets
related to EE and RE
Hungarian draft OPs (1)
Human Resources OP (EFOP)
– No mention of training and education in the field of energy in the OP
Economic Development and Innovation OP (GINOP)
– Investment in EE in buildings owned by SMEs, energy systems in
declining industrial regions, EE investment in natural and cultural
heritage, contribution of ICT to EE
– Financial instrument for EE investment by SMEs and municipalities
– Contains targets related to the LCE, reference to 20-20-20 targets
– Acknowledges contribution of EE to growth and employment
Hungarian draft OPs (2)
Regional and Urban Development OP (TOP)
– Low carbon economy features among the thematic objectives
– Investment priorities include energy efficiency in public buildings and
in social housing, investments in public transport, cycling and walking,
preparation of low carbon development strategies, complex
programmes aimed at utilizing local energy potentials
– Financial instruments for energy efficiency planned
– Indicators relating to energy efficiency in buildings
– Focus on small scale local community based solutions
– CLLD with a focus on EE
Hungarian draft OPs (3)
Competitive Central Hungary OP (VEKOP)
– Investment in EE in public infrastructure including public buildings and
social housing, EE in SMEs, EE in public transport
– Financial instrument for EE
– Indicators related to EE
Integrated Transport Development OP (EFOP)
– Energy efficiency investments in shipping and suburban and regional
railroad, awareness raising for sustainable urban transport,
– EE indicators for transport
Environment and Energy Efficiency OP (KEHOP) is not yet published for public
consultation
Thank you for your attention!
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