1. EEFIG Value & Appraisal Guide in the Wider Policy Framework
Peter Sweatman Rapporteur
Energy Efficiency Financial Institutions Group (EEFIG)

2. #EEFIG Goal: To Increase EU Energy Efficiency Investments
EEFIG’s work
has benefited
from:
#EEFIG Goal: To Increase EU Energy Efficiency Investments
EEFIG’s Mandate
Active input of some 120 expert participants (8,000 hours) 2
Who would be the right party
to address them? 3
What should the European
Commission/ EU do?
What are the most imminent
challenges that must be overcome? 1
40% of the EEFIG participants either work for, or represent the views of, financial institutions. Participation from financial institutions, policy makers, finance users (buildings, industry or SME) and energy efficiency experts.

3. The Key Challenges Remain, but Work is On-going…
Buildings and
Corporate sectors
are very different
Yet…
The Key Challenges Remain, but Work is On-going…
Imminent Challenges
Driving Demand 1
Managing Uncertainty 2
Distribution and Aggregation 3
Blending Grants and Loans 4
Accounting Treatment 5
Horizon Period / Optimal Scope 6
Financial Regulatory Issues 7
EEFIG participants identified cross-cutting themes
which provide a framework to describe challenges facing energy efficiency investing in both EU Buildings and Industry

4. De-Risking Energy Efficiency Platform (DEEP)
DEEP is an open-source initiative to up-scale energy efficiency investments in Europe through the improved sharing and transparent analysis of existing projects in Buildings and Industry.
Expected to contain data for over 10,000
building and industry projects
(y/e 2017) contributed by:

5. Key DEEP Message: Energy Efficiency Is More Cost-Efficient than New Energy Supply
HEADLINE DATA FROM DEEP:
DEEP’s Euro 1 billion of investment projects show that the avoided cost per kWh delivered by EE is highly competitive: Euro /kWh in industry and Euro /kWh in buildings.
The median payback from over 3,000 DEEP contributed projects from Industry is 2 years.
In buildings, 2,000+ single measures in DEEP payback in a median of 3 years, whereas 600+ deeper or integrated renovations typically require over 7 years to be paid back.
CONCLUSIONS DRAWN BY EEFIG:
Investing in Energy Efficiency first can reduce the cost of Europe’s energy transition
Existing EE projects are just “the tip of the iceberg”
Industrial EE investments in DEEP rarely exceed 3 year paybacks: A good guide to the market
There is more diversity in buildings with a wider distribution between the very low hanging fruit of single measure LED and HVAC and deeper renovations.

6. DEEP Observation: Non-Energy, Multiple Benefits of EE Rarely Reported or Measured
HEADLINE DATA FROM DEEP AT LAUNCH:
Just 20% of Buildings and 6% of Industrial projects (772 total) from over 5,900 in DEEP contain any information about the non-energy, or multiple benefits delivered through energy efficiency investments.
The most frequently recorded non-energy/ multiple benefits recorded in DEEP are carbon emission reductions, reduced maintenance costs, health & safety and employee satisfaction.
CONCLUSIONS DRAWN BY EEFIG:
Important investment drivers like increased market value, rentability, comfort, health, emissions reductions and other factors continue to be under reported by business and buildings owners.
Multiple benefits continue to be less visible and hard to track consistently. This suggests that real project returns are, in fact, much higher than reported in DEEP.
EE projects continue to lack sufficient monitoring, and therefore ex-ante and ex- post data, leading to higher risk perception. This is why EEFIG has developed its Underwriting Toolkit for EE investments.

7. DEEP has New Functionality for Buildings
Chart showing buildings measures with greater granularity is now on-line

8. DEEP has Launched in
German

9. Please Use or Contribute to DEEP?
Become a user
Become a data provider
Enhance your understanding of and access to energy efficiency finance related business
Streamline underwriting procedures through the development and use of a common language for energy efficiency underwriting
Decrease due diligence and transaction costs
Better risks assessment through high quality and credible data framework
Contribute to creating of European evidence base which is key to “get the EE policy and market story right”
Acknowledgement and visibility as data contributor
Benchmarking your project performance versus others
Connect your data investors
Influence the industry best practice

10. Underwriting Toolkit is Connected to DEEP
Several Purposes:
better understand the nature of energy efficiency investments and therefore better evaluate both their value and the risks. 1
to help originators, analysts and risk departments within financial institutions
to provide a standardised framework for evaluating 2
energy efficiency investments and analysing the risks that will allow training and capacity building around standardised processes and understanding
to help developers and owners seeking to attract external capital 3
to energy efficiency projects to develop projects in a way that better addresses the needs of financial institutions
to foster a common language 4
between project developers, project owners (hosts) and financial institutions

11. What Can/ Should #EEFIG do Now ? (Survey Proposals)
Maintain & Promote “EEFIG assets” with FIs: DEEP and Underwriting Toolkit 1
Upgrade & Deepen Engagement on the “Finance-specific Areas”: Green-Tagging and EE role in Green Finance 2
Lever #EEFIG for MS: Ensure that Knowledge and Assets are properly levered in Member States 3
Support Public & Private Financial Instrument Design through work with FIs incl. blending and working with SFSB 4

12. Please visit www.eefig.org Engage and join the conversation!
Latest EEFIG Report & supporting materials 1 2
Engage with the
“Energy Efficiency De-risking Project”
Become a user and/or become a data provider and engage in an expert dialogue which contributes to enhancement of the fundamentals of energy efficiency
investments in the buildings and corporate sectors 3
Use the “EEFIG National”
Tool & Database
It relies on used a standardized method and process to engage with key expert stakeholders in Spain, France, Germany, Poland and Bulgaria over 12 months. Each country’s results can be found with a series of summaries as well as an interactive review of the EU data

13. EEFIG Support and Legal Disclaimer (“Thank you”)
EEFIG was supported by Climate Strategy and Partners which was contracted to support the coordination and drafting of the EEFIG report, and supporting materials, on behalf of EEFIG and whose Chief Executive is group moderator, rapporteur and active participant in the group.
This document is a summary of the EEFIG Final Report prepared for the European Commission by the members and participants of the Energy Efficiency Financial Institutions Group (“EEFIG”) as listed herein and represents a group consensus view. The views and opinions expressed herein are wholly those of EEFIG reached by consensus at the time of writing. The consensus view does not necessarily reflect, in its entirety, the individual view of the Commission nor any EEFIG member or participant nor should membership or participation in EEFIG bind any member or participant to the consensus views described here. EEFIG views and opinions are subject to change without notice. Neither EEFIG, the Commission, Climate Strategy or any individual member or participant of EEFIG may individually or collectively be held responsible for any use which may be made of the information contained herein. The examples and case studies described in this document have been provided by specific participants to EEFIG meetings and are based upon information gathered by these individuals; the references used to develop these illustrative examples (which are quoted) should always be considered as the most accurate and complete source of information. EEFIG members and participants note that many are specialists in either buildings or industrial energy efficiency and have therefore only provided input into the sections relevant to their specialist area.

14. Join #EUSEW17 www.eusew.eu ‘EU Sustainable Energy Week’
@euenergyweek & #EUSEW17
‘EU Sustainable Energy Week’