1 European Union Regional Policy – Employment, Social Affairs and Inclusion Using Structural and Cohesion Funds to invest in energy efficiency in buildings Peter Berkowitz Head of Unit Policy Conception, DG Regional policy

2 European Union Regional Policy – Employment, Social Affairs and Inclusion Cohesion Policy

3 European Union Regional Policy – Employment, Social Affairs and Inclusion European Union Cohesion Policy │ 3 Examples of cohesion policy funding for energy efficiency in buildings

4 European Union Regional Policy – Employment, Social Affairs and Inclusion Green building cluster in Lower Austria Support for: 343 cooperation projects since 2001 with 1167 companies involved To develop innovation project ideas, identify project partners, develop project proposals, implement project and disseminate results Examples of results: new brick system with certificate of Passive House Institute Darmstadt, completion of a production line for prefabricated timber constructed houses in passive house standard, a chimney for fresh air ventilation system Physical investments to demonstrate passive house technology: office building in passive house standard, a prototype m² supermarket, passive house village Slide from material provided by A. Geisslhofer, Lower Austria Development Agency

5 European Union Regional Policy – Employment, Social Affairs and Inclusion 5  The London Green Fund (a JESSICA holding fund) established in late 2009 to invest in carbon reduction projects in line with the Climate Change component of the London Plan  Focused on energy efficiency, waste and decentralised energy as the “3 biggest carbon reduction opportunities for London”  Governed by representatives from the Greater London Authority, the Environmental Agency and the London Waste and Recycling Board. Energy Efficiency Urban Development Fund £35 m London Green Fund £100m* Managed by EIB London Waste & Recycling Board £50m Private finance £50m * £15m remains available for further investment Urban Projects The London Green Fund (1) Private finance Waste Urban Development Fund Equity type investment Loan type investment Low risk High risk Min £50m Min £35m Aiming to deliver outputs/impacts on job creation, tons of carbon saved, and minimum energy usage savings £32m Slide from material provided by F. Lee, EIB

6 European Union Regional Policy – Employment, Social Affairs and Inclusion KredEx, Estonia (1) Slide from material provided by M. Adler, KredEx

7 European Union Regional Policy – Employment, Social Affairs and Inclusion KredEx, Estonia (2) Scope of support: Focus on multi-apartment buildings Thermal insulation: – of the roof –of the walls/facade –of the cellar/roof ceiling New windows/outdoors New heating system/renovation of the heating system Renovation of the ventilation system / new ventilation system Installation renewable energy devices KredEx loan compared with commercial loan: 4,3 – 4,8% compared with 7- 10% Slide from material provided by M. Adler, KredEx

8 European Union Regional Policy – Employment, Social Affairs and Inclusion European Union Cohesion Policy │ 8 Cohesion policy funding for energy efficiency in buildings

9 European Union Regional Policy – Employment, Social Affairs and Inclusion New elements in regulatory proposals List of thematic objectives developed around the Europe 2020 headline targets and flagship initiatives minimum shares for climate change related expenditure Climate change expenditure tracking Stronger focus on financial instruments

10 European Union Regional Policy – Employment, Social Affairs and Inclusion Thematic Objectives to Deliver Europe 2020: an integrated framework for the CSF Funds Strengthening research, technological development and innovation Enhancing access to, and use and quality of, information and communication technologies Enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF) Supporting the shift towards a low-carbon economy in all sectors Promoting climate change adaptation, risk prevention and management Protecting the environment and promoting resource efficiency Promoting sustainable transport and removing bottlenecks in key network infrastructures Promoting employment and supporting labour mobility Promoting social inclusion and combating poverty Investing in education, skills and lifelong learning Enhancing institutional capacity and an efficient public administration

11 European Union Regional Policy – Employment, Social Affairs and Inclusion Investment Priorities Supporting the shift towards a low carbon economy in all sectors: (ERDF/CF/ETC) –Production and distribution of renewable energy –Energy efficiency and renewable energy in SMEs –Energy efficiency and renewable energy in public infrastructures and residential buildings (only ERDF) –Smart distribution systems as well as low-carbon strategies for urban areas

12 European Union Regional Policy – Employment, Social Affairs and Inclusion Ex-ante conditionalities Applicability: supporting energy efficiency and renewable energy use in public infrastructures, including in public buildings, and in the housing sector Conditonality: Actions have been carried out to promote cost-effective improvements of energy end use efficiency and cost-effective investment in Energy efficiency when constructing or renovating buildings. Criteria for fulfilment: Measures to ensure minimum requirements are in place related to the energy performance of buildings consistent with Article 3 (methodology for calculating energy performance), Article 4 (setting minimum energy performance requirements) and Article 5 (calculation of cost-optimal levels) of Directive 2010/31/EU. Measures necessary to establish a system of certification of the energy performance of buildings consistent with Article 11 of Directive 2010/31/EU. Measures consistent with Article 13 of Directive 2006/32/EC on energy end-use efficiency and energy services to ensure the provision to final customers of individual meters in so far as it is technically possible, financially reasonable and proportionate in relation to the potential energy savings.

13 European Union Regional Policy – Employment, Social Affairs and Inclusion Thematic concentration Minimum share of ERDF investments on: shift towards a low carbon economy research & innovation competitiveness of SMEs 6% Less developed regionsMore developed & transition regions 80% 20% 50% 6% + 4% limit on investment in housing abolished  Minimum EUR 17 billion for shift towards a low carbon economy

14 European Union Regional Policy – Employment, Social Affairs and Inclusion EE in the CSF Supporting the shift towards a low carbon economy in all sectors Key targets and objectives: Link to EU 2020 headline targets Reference to 2050 Low Carbon Economy Roadmap Reference to Energy Performance of Buildings Directive, Energy Services Directive, Renewable Energy Directive and SET Plan

15 European Union Regional Policy – Employment, Social Affairs and Inclusion EE in the CSF (2) Key actions for the ERDF Energy performance contracting Key actions for the ERDF and Cohesion Fund: EE and RES-H and in public buildings, in particular for demonstration and deep renovation EE and RES in SMEs Innovative RES technologies (SET-Plan, Energy Roadmap 2050, third generation biofuels) Marine-based RES Integrated low carbon strategies and SEAPs for urban areas

16 European Union Regional Policy – Employment, Social Affairs and Inclusion EE in the CSF (3) General implementation principles: Focus not only on 2020 but also on 2050 targets Bulk of investment should be made by private sector, public funding should complement and leverage private funding and avoid crowding out Financial instruments should be supported where potential for revenue generation of cost-savings is large Complementarity and coordination: ETS, especially NER300 and other auctioning revenues LIFE, especially integrated projects Synergies with actions in other TOs, including R&I, SME support, etc.

17 European Union Regional Policy – Employment, Social Affairs and Inclusion Possibilities Different types of financing grants Financial instruments, e.g. loans, interest rate subsidy, support to ESCOs, etc. Different types of investments: physical investment in energy efficiency in public buildings and housing education and training in building sector innovation support for start-ups and SMEs in the sector etc.

18 European Union Regional Policy – Employment, Social Affairs and Inclusion Thank you for your attention!