4 Funding for sustainable energy: Encouraging rational energy use in the EU EU funding for sustainable energy

Introduction A number of mechanisms at EU level to finance efficient use of energy The Intelligent Energy Europe programme (IEE) supports non technological actions to encourage sustainable energy - budget of €730 million for 2007-13 Energy a priority in regional funding instruments - the ‘cohesion’ and ‘structural’ funds - major part of overall EU budget Funding for small and medium-sized businesses (SMEs) - can help improve competitiveness through efficiency measures The Seventh Framework Programme (FP7) helps develop new efficiency and renewable energy technologies and get them to market EU funding for sustainable energy

Environment and energy LIFE+ (2007-13) EU’s funding instrument for environmental projects since 1992 Wide range of energy projects in the past - energy production and distribution; industry and commerce; buildings and households; transport and horizontal management approaches New generation of the programme for 2007-13 (LIFE+) will continue to co-finance sustainable energy projects http://ec.europa.eu/environment/life/index.htm EU funding for sustainable energy

Innovation and sustainable energy EU’s Competitiveness and Innovation Framework Programme (CIP) aims to encourage the competitiveness of businesses, particularly SMEs, by supporting innovation Supports the take-up of innovative environmental technologies and the use of renewable energies and energy efficiency http://ec.europa.eu/cip/index_en.htm EU funding for sustainable energy

Good Practice 1 Energy Check in Small and Medium Craft Enterprises (IEE funded) Developed a standardised energy check tool for SMEs Small businessmen qualified as ‘energy checkers’ and can audit other small businesses Five businesses in five countries: Bulgarian carpenters, German bakers, Greek bricklayers/glass producers/paint producers, Irish small food producers and Spanish meat producers http://ec.europa.eu/energy/intelligent/projects/doc/factsheets/e_check_in_craft_sme.pdf EU funding for sustainable energy

Sustainable regions Sustainable energy supported by two of the three regional development funds – the European Regional Development Fund (ERDF) and Cohesion Fund Three overarching objectives: Convergence - boosting the economies of the least prosperous regions Regional competitiveness and employment - with a particular focus on promoting clean urban transport European territorial cooperation - joint initiatives across borders http://ec.europa.eu/regional_policy/funds/feder/index_en.htm http://ec.europa.eu/regional_policy/funds/cf/index_en.htm EU funding for sustainable energy

In the country Rural development can contribute to targets to cut greenhouse gas emissions under the Kyoto Protocol Sustainable energy projects qualify for funding from the European Agricultural Fund for Rural Development (EAFRD 2007-13) Agriculture and forestry provide raw materials for bio-energy and contribute to reductions in greenhouse gas emissions The development of renewable energy can help diversify rural economies EU funding for sustainable energy

Good Practice 2 Wood to heat a school, Germany (ERDF funded) Municipality of Walsdorf, near Bamberg, built a kindergarten in 1993 with a biomass heating system fuelled by wood chips Local farmers, businesses and the authorities set up a company to operate the plant and provide wood chips Heating system now extended to neighbouring houses and retirement home Second plant is being built to heat new housing development Uses 650 tonnes of locally-grown wood per year Costs €150,000 per year Substitutes 170,000 litres of fuel oil Cuts CO2 emissions by 400 tonnes per year SO2 and NOx emissions cut by 750 tonnes per year EU funding for sustainable energy

Research and development Seventh Framework Programme for Research and Development (FP7) funds technological projects in energy efficiency, saving and renewables Examples of projects: hydrogen and fuel cells, renewable electricity generation and renewable fuel production http://ec.europa.eu/research/future/index_en.cfm EU funding for sustainable energy

Investment sources European Investment Bank and the European Bank for Reconstruction and Development provide financing for energy projects through: JASPERS (Joint Assistance to Support Projects in European Regions) supports preparation of infrastructure projects, principally in new Member States and accession countries Environmental projects, including energy efficiency and renewable energy, are one of the key areas covered by JASPERS http://jaspers.europa.eu/ JEREMIE aims to improve access to finance for micro business and SMEs. Emphasises technology transfer, start-ups, micro credit, technology and innovation funds EU funding for sustainable energy

Investment sources (cont’d) JESSICA is a joint initiative of the European Commission and the EIB Helps authorities exploit EU cohesion mechanisms supporting sustainable urban development and providing new opportunities Authroities can use European Regional Development Funds (ERDF), European Social Fund (ESF)and Urban Development Funds (UDFs) to accelerate investment in urban areas Risk Sharing Finance Facility (RSFF) provides additional support to research, development and innovation projects in Europe. The first RSFF financing operations focus on renewable energy technologies, a priority for the EIB in 2007 http://www.eib.europa.eu/ EU funding for sustainable energy

What is ManagEnergy? Initiative by European Commission Directorate-General for Energy and Transport Supports local and regional actions on energy efficiency and renewable energies Training workshops/online events Information on case studies, good practices, legislation and programmes Network of local and regional energy agencies (LEAs) EU funding for sustainable energy