Financial instruments for energy efficiency in housing Cohesion Policy experiences & outlook 2014-2020 Bjoern Gabriel, Policy Analyst DG Regional Policy.

Slides:



Advertisements
Similar presentations
Financial Instruments in ETC programmes
Advertisements

1 The new ESF Investing in your Future -
EN Regional Policy EUROPEAN COMMISSION The new European Regional Development Fund Brussels, 12 October 2006 Committee of the Regions N. De Michelis,
Financial Instruments under the European Structural and Investment (ESI) Funds MS expert meeting 17 June 2013.
The EU Adaptation Strategy
Theory-Based Evaluation:
1 Cohesion Policy support for Sustainable Energy Brussels, 11 October 2011 Maud SKÄRINGER European Commission Directorate-General for Regional Policy.
1 Effective Support for Enlargement Accelerating public investments Western Balkans Investment Framework Brussels, 19 October 2009 Alessandro Carano, EIB.
Categorisation of EU interventions Cohesion policy
1 Workshop I - Introduction: Monitoring and evaluation (M+E) financial engineering instruments for SMEs 5 th Plenary Meeting JEREMIE Networking Platform.
Instruments and development needs
REGIONAL POLICY EUROPEAN COMMISSION The urban dimension : State of play and perspectives Władysław Piskorz DIRECTORATE-GENERAL.
Regional Policy Delegated Acts. Regional Policy 2 Delegated ActsImplementing Acts 32(10): Purchase of land and combination of TA with FI 33(3)(a):FI complying.
Operational Programme I – Cohesion Policy Event part-financed by the European Union European Regional Development Fund Evaluation Plan for Maltas.
The political framework
Add your logo here 1 EUSEW Developing and financing local and regional sustainable energy investments Juan Alario Associate Director European Investment.
1 JESSICA Joint European Support for Sustainable Investment in City Areas Horizontal Study European Investment Bank From evaluation to operation The Handbook.
Optional use of ERDF money for projects within integrated urban plans
JESSICA Progress report and key issues Rakesh BHANA JESSICA and Investment Funds, European Investment Bank Brussels, 28 June 2011.
JEREMIE Joint European Resources for Micro to Medium Enterprises.
1 JEREMIE Networking Platform 5 th meeting Brussels, 20 May 2011 DG REGIO D3 - Financial engineering, major projects.
European Union Cohesion Policy
1 JESSICA snapshot - an introduction Bjorn Gabriel, Policy Analyst, DG Regional Policy, D3 - Financial Engineering and Major Projects Conference on JEREMIE.
Samuele Dossi DG for Regional Policy - Evaluation
1 Cohesion Policy support for Sustainable Energy Intelligent Energy Europe boosting regional competitiveness through sustainable energy Open Days Workshop.
EN Regional Policy EUROPEAN COMMISSION Information and Publicity SFIT, 15 June 2006 Barbara Piotrowska, DG REGIO
NBFSE Financial instruments and mechanisms of fund allocation to social economy Common meeting 5-6 th December, Milano.
Financial Instruments in Cohesion Policy
Structural and cohesion funds and the European Semester process –experiences from the past, lessons for the future for the European Structural and Investment.
Regional Policy The future of EU funding - proposals from the Commission Guy Flament European Commission, DG REGIO Cardiff, 19 April 2013.
Stefan Appel, DG Regional and Urban Policy
NBFSE Financial instruments and mechanisms of fund allocation to social economy Common meeting 5-6 th December, Milano.
1 Regional Policy contributing to smart growth in Europe 2020 Standard presentation Brussels, November 2010 Pierre GODIN Policy Analyst, DG Regional policy.
Budapest October 2, 2014 Irina Kotliar Energy efficiency in buildings. European support schemes.
Cyprus Project Management Society
Support for programme and project development: JASPERS and ELENA Ralf Goldmann EMA network Meeting
Regional Policy ESIF : Technical Assistance Platform for financial instruments (TAP) DG Regional and Urban Policy, Unit B.3 Financial Instruments,
EUROPEAN COHESION POLICY AT A GLANCE Introduction to the EU Structural Funds Ctibor Kostal Sergej Muravjov.
Financing Growth and Cohesion in the enlarged EU 24 November 2005 Financing urban actions and sustainable communities Financing urban actions and sustainable.
Financial Instruments in the rural development area – delivering as they should? by Peeter LÄTTI Head of cabinet European Court of Auditors 18 June 2015.
REGIONAL POLICY EUROPEAN COMMISSION The EU Recovery Plan and the proposal amending the European Regional Development Fund Regulation.
Regional Policy EUROPEAN COMMISSION 1 Convent of Marshals Szczecin, June 2008 JEREMIE Financial engineering ROP’s Pascal Boijmans Unit Poland Directorate.
Regional Policy ESIF : Technical Assistance Platform for financial instruments (TAP) DG Regional and Urban Policy, Unit B.3 Financial Instruments,
JESSICA Holding Fund for Mazowieckie Voivodship Steps towards establishing Urban Development Funds Preparation of urban development projects European Investment.
WHAT IS JESSICA-1 ?  JESSICA stands for Joint European Support for Sustainable Investment in City Areas  JESSICA is an optional facility  JESSICA offers.
Financial Instruments in Cohesion Policy DG REGIO, Open Days, Brussels, October 2013 Financial Instruments for SMEs- A regional example.
SMEs Seminar. 14 March 2014, Barcelona DG Regional and Urban Policy
1 JEREMIE: Joint European Resources for Micro to Medium Enterprises “Train the trainers” European Commission seminar for managing and certifying authorities.
1 Cohesion Policy Brussels, 9 June 2009 “ Cohesion policy: response to the economic crisis” European Commission seminar for managing and certifying.
1 An Innovative Tool for Sustainable Investment in Urban Areas JESSICA: Virgilio Martins - JESSICA Coordinator, DG REGIO - Financial Engineering World.
Fi-compass scope & work programme 2015 Pieter Coppens Advisory Services, EIB.
10/11/2015European Investment Bank Group1 EIB Advisory Services Simon Barnes 10 th November 2015.
1 EUROPEAN FUNDS IN HALF-TIME NEW CHALLENGES Jack Engwegen Head of the Czech Unit European Commission, Directorate General for Regional Policy Prague,
REGIONAL POLICY EUROPEAN COMMISSION The contribution of EU Regional/Cohesion programmes Corinne Hermant-de Callataÿ European Commission,
The EU Water Initiative and the EU ACP Facility New Instruments to promote sustainable development of water resources and affordable access Antonio Garcia-Fragio.
URBACT IMPLEMENTATION NETWORKS. URBACT in a nutshell  European Territorial Cooperation programme (ETC) co- financed by ERDF  All 28 Member States as.
1 European Investment Bank EIB's support for Energy Efficiency & Renewable Energy Investment in cities and regions - European Local Energy Assistance (ELENA)
Regional Policy EUROPEAN COMMISSION JEREMIE, by George Kolivas REGIO-B.4 – Financial Engineering JEREMIE stands for : ‘Joint European REsources for MIcro.
Energy Fund The Hague Alternative use of ERDF to support energy efficiency measures Making financial instruments work for cities Ton Overmeire, Holding.
Investment Plan for Europe & ESIF Financial Instruments
Financial Instruments - Implementation in the EU and in Lithuania
Financial Instruments under the ESI Funds - ESF: Outlook
Supporting Cities and Regions through Projects and Programmes
Technical Assistance Platform for ESIF Financial Instruments Context and outlook ESF Informal Technical Working Group meeting, June.
Advisory Services Department
EU Social Impact Financing Initiatives
Ex ante conditionalities in cohesion policy:
Financial Instruments - Implementation in the EU and in Lithuania
JEREMIE SNAPSHOT: An Innovative instrument to support SMEs
Thematic workshop 2 – Smart Energy Systems Brussels, 8 November 2013
Presentation transcript:

Financial instruments for energy efficiency in housing Cohesion Policy experiences & outlook 2014-2020 Bjoern Gabriel, Policy Analyst DG Regional Policy – Unit D.3: ‘Financial engineering, major projects’

Outline Financial Engineering Instruments 2007-2013 The JESSICA initiative FEIs for EE & RES overall – State of play FEIs for EE in housing – Experiences Outlook: financial instruments 2014-2020

Financial Engineering 2007-2013 Financial Engineering in Cohesion Policy: Innovative way of delivering CP support through revolving financing instruments (using new structures and processes), complementary to traditional non-repayable public support through grants Article 44 of the GR enables support through FEIs in three thematic areas: Art 44 (a): SMEs, including micro enterprises Art 44 (b): Sustainable urban development Art 44 (c): EE & RES in the building sector, including existing housing FEIs are e.g. referred to as venture capital funds, guarantee funds and loan funds FEIs represents a new approach to CP support, resulting in different implementation structures as compared to grants, new partnerships in promoting and delivering this form of CP support, the need to offer assistance to our stakeholders in the design and implementation of FEIs.

Background: FEI implementation structure Grant support Ex-post reimbursement For projects or project components without revenue-generating capacity One-off support Managing Authority Grant No particular legal structures specified but must be set up either as independent legal entity or as a separate block of finance within a financial institution Both HF and as FEIs. Can be newly established entities. In existing entities, separate accounting important. Beneficiaries

Background: FEI implementation structure Operational Programme / public policies / resources Implementation phases Evaluation & design Implementation: Selection of HF (optional) > Funds / Financial Intermediaries > final recipients for actual investments / disbursements Key features of FEIs Providing loans, equity or guarantees for revenue-generating (parts) of projects Revolving scheme > budgetary efficiency Possible leverage from public or private sector partners (all levels) Provide finance to final recipients before actual project expenditure Offer a high degree of flexibility > tailor-made support & delivery structures Can be combined with grants Managing Authority SF Holding Fund (HF) Additional resources CoFin SF SF Fund / Financial Intermediary Fund / Financial Intermediary Must be effectively made! Financial products Financial products Final recipients Final recipients Market situation & appropriate promotional instruments

JESSICA – Support to CP stakeholders (1) Joint European Support for Sustainable Investment in City Areas - joint initiative of EC’s DG for Regional Policy, developed in co-operation with EIB and CEB, to support sustainable urban development and regeneration through financial engineering mechanisms. Promote the use of financial engineering instruments for sustainable urban development in Cohesion Policy Develop partnerships with regions, cities, national and regional financial institutions and other investors Assist Member States in designing and implementing these revolving instruments MAs may mandate EIB to act as HF manager (GR) 6

JESSICA - Support to CP stakeholders (2) 65 JESSICA OP-specific Evaluation Studies commissioned in 22 Member States; 55 studies finalised (http://jessica.europa.eu; www.eib.org/jessica) 2 Horizontal Studies published: HF Handbook, UDF Typologies and Governance Structures), and 6 Horizontal Studies underway, incl. UDF Handbook; Energy-focused Urban Development Funds; Methodologies for Assessing Social and Economic Performance in JESSICA; Housing in JESSICA Operations; JESSICA for Smart and Sustainable Cities; Marketing, Communication and Knowledge Dissemination Strategies for JESSICA Operations JESSICA Networking Platform (JNP) established in 2009 by the EC, EIB and CEB as a forum for exchange of information, experiences and best practice JNP events: Two Networking Platforms & Annual Conference per year Thematic JESSICA Working Groups, initiated and co-ordinated by stakeholders to provide recommendations to EC and its partners (JESSICA & Housing; Lessons learned by Financial Intermediaries) 7

FEIs for EE & RES overall – State of play FEIs under Art 44 (b): Sustainable urban development EUR 1.89 bn legally committed to 22 JESSICA operations in 11 MS Of these 22 JESSICA operations, ten have an energy component amounting to a maximum of EUR 1,008 billion of possible investments in energy efficiency measures and renewable energies infrastructure in cities Wide scope of EE & RES interventions at project level, ranging from sustainable urban infrastructure developments (e.g. London Green Fund) to the retrofitting of housing stock (Estonia, Lithuania). 15 UDFs operational by 30 June 2011; up to 30 expected to be active early 2012 First project investments undertaken in Estonia, Brandenburg, Poland and Lithuania FEIs under Art 44 (c): EE & RES in buildings, incl existing housing So far, one instrument reported in Greece (“Eksikonomo kat’ oikon” – EE for private housing in Greece): HF structure (EUR 241 million)

FEIs for EE in housing - Experiences EE interventions suitable for repayable investments from FEIs as energy savings & related cost savings serve as revenue-basis However, shift from grant culture to repayable investments is not self-evident (change of paradigm, financing capacity of final recipients, etc.) Success factors: Combination of FEIs and grants essential Financial incentives, such interest rate subsidies or grants to cover the self-financing share of final recipients Performance incentives, such as incremental capital rebates or interest rates related to EE gains / categories reached Technical assistance & project preparation, such as energy audits, planning documents, etc. Campaigning: Awareness-raising and promotion Stakeholder co-operation & integration of existing programmes or actors Need for relevant expertise in the market (easy access; sufficient capacities) Dove-tailing / One-stop shop: technical project preparation & access to finance in one package Involvement and development of ESCO sector (large potential) EE intervention as part of holistic / multi-thematic upgrading approach 9 9

Outlook: Financial instruments 2014-2020 (1) Background: Increased importance of financial instruments in implementing EU budget resources in future (MFF 2014-2020) CP Financial Instruments 2014-2020 to provide a clear set of rules, building on existing guidance and interpretations capture synergies with other forms of support such as grants, and to ensure compatibility with financial instruments at EU level Key provisions of legislative COM proposal 2014-2020: Scope: Expansion to all thematic areas covered by OPs Ex-ante assessment prior to establishing FIs More implementation options: Support to FIs set-up at EU level (direct management) Support to FIs set-up at national/regional level, managed by MAs (shared management) Already existing or newly created instruments (tailored) Standardised instruments for which terms & conditions are laid down in Commission Acts; ready-to-use 10 10

Outlook: Financial instruments 2014-2020 (2) Key provisions of legislative COM proposal 2014-2020 (continued): Easier mobilisation of national co-financing: Payment applications to include total of support paid and expected to be paid to FIs over a period of max. two years (phased contributions); Additional incentive: EU co-financing share to increase by 10% if whole priority axis is implemented through FIs Clearer rules concerning the financial management of EU contributions Interest on EU contributions prior to investments Capital resources paid back from investments Gains/earnings/yields generated by investments Use of legacy resources in line with OP for at least ten years after closure Better monitoring & reporting concerning financial instruments Strengthening the combination of FIs and other forms of support 11 11 11

Thank you for your attention! For further information: Website: http://jessica.europa.eu E-mail: REGIO-JESSICA@ec.europa.eu bjorn.gabriel@ec.europa.eu DG Regional Policy – Unit D3 – Financial engineering, major projects