LIFE 2014-2020 Stefanie Hugelier FOD VVVL – DG Leefmilieu

3,455 billion : 2,591 ENV + 0,864 billion CLIMA -> Subprogramme Environment with three priority areas: Environment and Resource Efficiency Nature and biodiversity Environmental Governance and Information. => At least 55 % of the budgetary resources allocated to projects supported by way of action grants under the sub- programme for Environment shall be dedicated to projects supporting the conservation of nature and biodiversity (art.9,3) -> subprogramme Climate with three priority areas: Climate Change Mitigation; Climate Change Adaptation; Climate Governance and Information.

Types of intervention project grants ; 81% of the budget: action grants or financial instruments operation grants (NGO, Impel…) other types of activities (i.e. public procurement and technical assistance for the management of the programme)

Types of projects pilot, demonstration, best practice, information, awareness and dissemination projects (i.e. "traditional projects"), preparatory projects i.e. projects primarily identified by COM in cooperation with MS to support specific needs for the implementation and development of Union environmental or climate policy action, technical assistance projects i.e. projects providing, by way of action grants, financial support to help applicants prepare integrated projects capacity building : not for BE Integrated projects: projects implementing on a large territorial scale (regional, multi-regional, national or trans-national), environmental or climate plans or strategies required by specific Union environmental or climate legislation, developed by Member States' authorities, primarily in the areas of nature, water, waste, air and climate change, while ensuring involvement of stakeholders and promoting the coordination with and mobilisation of at least one other relevant Union, national or private funding source.

National allocation Territorial scope for the duration of the first multiannual Work Programme (MAWP): only for Traditional Projects in subprogramme environment Territorial scope - Third countries: EFTA, candidate, acceding countries… - International organisations - Activities outside Union and OCT: action outside EU is necessary AND, ensure effectiveness of interventions carried out in MS; the coordinating beneficiary is based in EU

Multi-annual work program (MAWP) “Shift from a bottom up to a flexible top-down approach” Prepared by COM in consultation with MS: implementing act with examination procedure MAWP 2014-2017, MAWP 2018-2020 Contains budget distribution between sub-programmes, priority areas, thematic priorities, project and funding types; the methodology of selection; the project topics for the "traditional" projects; qualitative and quantitative outcomes, indicators and targets for each priority area and type of project; indicative timetables for the calls for proposals

Maximum co-financing rates first MAWP: up to 60 % of eligible costs for all projects, funded under both sub-programmes for Environment and Climate Action; Second MAWP: up to 55 % of eligible costs for all projects, funded under both sub-programmes for Environment and Climate Action; But for the entire duration of the LIFE Programme: - up to 60 % of eligible costs for integrated projects; technical assistance projects and preparatory projects; - up to 60 % of eligible costs for projects funded under the priority area Nature and Biodiversity in the sub-programme for Environment; - up to 75 % of eligible costs for projects funded under the priority area Nature and Biodiversity in the sub- programme for Environment that concern priority habitats or species, birds

Environmental subprogramme Environment & natural ressources -> Roadmap for a Resource-Efficient Europe and the 7th Environment Action Programme Thematic priorities for Water, including the marine environment Waste Resource Efficiency, including soil and forests, and green and circular economy Environment and Health, including chemicals and noise Air quality and emissions, including urban environment

Nature and biodiversity Thematic priorities for Nature: - activities aimed at improving the conservation status of habitats and species, including marine habitats and species, and bird species, of Union interest; - activities in support of the Natura 2000 network ; - integrated approaches for the implementation of prioritised action frameworks. Thematic priorities for Biodiversity: activities for the implementation of the Union Biodiversity Strategy to 2020. Priority area Environmental Governance and Information - information, communication and awareness raising campaigns in line with the 7th Environment Action Programme; - activities in support of effective control process as well as measures to promote compliance in relation to Union environmental legislation, and in support of information systems and information tools on the implementation of Union environmental legislation.

Climate subprogramme - Using Life action part strategically: Limited compared to overall climate finance in the EU budget: €0.86 billion for 2014-20 (< 0.5 % of total climate finance) Use strategically and in a focussed manner, complement other funding instruments Test innovative options leveraging a high climate action impact - Implementation of climate and energy package, particularly closing implementation gap in reducing EU energy efficiency target - Preparing the EU for the climate action challenges beyond 2020. Publicly support pioneering new and innovative, climate friendly technology and approaches eg entrepreneurs/SMEs outside NER300, agriculture/forestry - Develop innovative sources of finance

Climate subprogramme innovative financial instruments in most cases offer the highest leverage; integrated projects offer a medium leverage through blending of financial sources from different sources (e.g. rural development, research, regional development); individual project grants normally offer lower leverage, but may provide chances to support particularly innovative mitigation/adaptation projects.

FI: Natural Capital Financial Facility (NCFF) Objective: nature & biodiversity and climate change adaptation. 4 types of projects: payments for ecosystem services (e.g. water utility pays farmers for sustainable behaviour to improve water quality), green infrastructure (e.g. wetland restoration reduces costs for coastal defence), biodiversity offsets (e.g. creation of habitat bank) innovative pro-biodiversity and adaptation restore businesses (e.g. company developing green cooling of buildings). Mechanism: NCFF will perform investments in projects through loans to finance upfront investment and operating costs (directly to company or local authority or via a bank). The loans would be repaid from the revenues generated by the project and/or the general business activity of the beneficiary. Also equity possible for investments in targeted funds. LIFE budget will be used to cover first losses in case of project failure and to cofinance the expert support facility.

FI: Private Financing for Energy Efficiency instrument (PF4EE) Proposed budget in pilot phase: 110M€ from LIFE to finance expert support and risk sharing (to cover losses); EIB loan portfolio: +/-1000M€ Objective: climate change mitigation by addressing energy savings Mechanism: EIB will select commercial banks and signs financing agreements. This includes a risk sharing facility (bank has to pay for this risk protection). EIB offers expert support facility to help these banks to develop financial instruments for energy efficiency. EIB offers loans to the commercial bank at advantageous terms, the bank uses this to provide long term loans for energy efficiency to SME’s, public bodies, private individuals, … from €40k - €5m. Role of MS: EIB will talk to energy agency in MS and seek complementarity with NEEAP and MS programmes for energy efficiency (e.g. give loans complementing national grants for EE).

FI: Climate Change Window under the sub-programme Climate Action within the Risk Sharing Instrument (CCW-RSI II) Proposed budget in pilot phase: 40M€ from LIFE (20 in 2014/15 and 20 in 2015/16). Objective: climate change mitigation and climate change adaptation, mainstreaming of climate change in Horizon 2020 and its specific financial instruments. Mechanism: European Investment Fund (EIF) will organise open call for expression of interest to select financial intermediaries and sign financing agreements with these banks. They provide loans to the final beneficiaries which are climate-friendly, innovative SME’s and small mid-caps via commercial banks. EIF provides direct guarantees to the banks who extend these loans and also counter-guarantees to guarantors which issue guarantees to banks. Up to 50% guarantee rate provided by the EIF.

Verdere info website Life+ http://ec/europa.eu/environment/life Info Leefmilieu en klimaat: Stefanie.hugelier@environment.belgium.be Info Natuur en biodiversiteit: Els.martens@lne.vlaanderen.be