1. EU Social Impact Financing Initiatives
EUROCITIES
Working Group on Public Services and Public Procurement
Brussels,
Georgia Efremova
Directorate General for Economic and Financial Affairs

2. Policy Context
Outcomes-based finance is a key element of the emerging EU impact investing framework.
Developed as ecosystem approach, the framework combines:
financial tools developed over time under the EaSI Programme and European Fund for Strategic Investments (EFSI)
Capacity building and market development actions – for social finance intermediaries and organisations
Stimulating enabling conditions – sustainable finance, EU leadership in global SDGs agenda

3. Current Social Finance Instruments
MFF
Current Social Finance Instruments
Complementary set of products
for micro- and social entrepreneurship to address the demand for social capital : ensuring high leverage effect through EFSI
EaSI Capped Guarantee facility
Capacity Building Equity instrument
Funded (Loans) Instrument
Enhanced EaSI instruments
Social Incubation Facility
Social Business Angels co-investments
Pan-European Social Impact PbR Facility
EFSI
Social Impact Window
Piloting innovative instruments in support of social innovation and impact creation: strong focus on the early stage funding segment and experimentation

4. Highlights: EU Pan-European SIB facility
First Pan-EU Social Impact Facility in Focus
Highlights: EU Pan-European SIB facility
Piloted in October 2016 under the European Funds for Strategic Investments, an initiative of the EC and the EIB Group
Implemented by the EIF, investing on behalf of the Commission, as an equity investment scheme
First investment realized in June 2017 supporting the Finnish SIB for labour market integration of migrants and refugees
Overall EUR 150m allocation for impact investments under the Social Impact Window under EFSI
A new paradigm? SIBs hold a lot of promise and could be a useful tool to pilot and scale innovative solutions;
support cross-sectoral and cross-departmental collaborations/ partnerships
Support innovation in public management and a shift to 'outcomes-based decision- making' in public service provision
European Social Impact Platform being developed under the European Investment Advisory Hub to support knowledge exchange and capacity building of social impact actors

5. The InvestEU fund (2021-2027) An ambitious proposal
Single EU guarantee of EUR 38bn, at a provisioning rate 40 %
Budget for InvestEU Advisory Hub, InvestEU Portal and accompanying measures proposed of EUR 525m.
Diversification of Implementing Partners – EIB Group, IFIs (CEB, EBRD, etc.), special role for National Promotional Banks

6. The Invest EU Programme (2021-2027)
Single investment EU support mechanism – Eur 38bn Fund
Single budgetary guarantee as policy and delivery tool (June 6, Proposal)- efficiency gains, single agreement with diverse implementing partners, reinforced EC role
Policy driven approach implemented through four thematic policy windows- R&I, Sustainable Infrastructure, SMEs, and Social Investments and Skills
Blending – harmonised combination rules for synergies and complementarities between EU and MS action
Social Investments and Skills Window
Eur 4bn Guarantee expected to mobilise Eur 40bn of investment into the social sector (health, education, housing, employment etc)
Integrated investments in social infrastructure, social services, human capital & skills, innovation, microfinance, social economy
A new paradigm for EU social investments, based on partnerships, and with outcomes-based financing at its heart

7. EU Capacity Building actions for SOC
European Social Outcomes Contracting Platform being developed under the European Investment Advisory Hub to support knowledge exchange and capacity building of social impact actors.
Launched in December 2018 jointly with Finnish Ministry of Social Affairs and Health and supported by the Finnish Innovation Fund – Sitra.
Promoting SOC is an innovative form of procuring social services by public authorities,
focused on social “outcomes” rather than “outputs” and
the delivery of integrated and improved public services and interventions addressing critical social challenges.
It includes Payment by Result contracting, Social Impact Bonds ( “SIB”), Social Impact Contracts, and other similar innovative commissioning and partnership arrangements.
ECFIN – EIB SOC Workshop January 2018 explores SOC as potential vehicle for effective public service provision, identifying a number of important actions at EU level identified – establishing practitioners' networks, model templates and data collection, Outcome Payment Funds identified as a further milestone.

8. EU SOC Platform 2019
January 2019 – High level launch in Luxembourg, bringing together key Member State representatives interested in developing the outcomes-based approach in their country.
The platform aims to share knowledge and best practice amongst public sector stakeholders on social outcomes contracting, building their capacities for effective social service provisioning using SOC methodologies.
Main areas of common work – procurement, co-creation, and the use of Structural Funds
Insights gained will support the Finnish Ministry of Social Affairs and Health within the context of its key theme, Economy of Wellbeing, under the Finnish EU Presidency in the second half of 2019
Considered by EC in designing supportive measures for public good creation- harnessing of resources and energies of public authorities, business and finance, philanthropy and civil society sectors to deliver effective interventions strengthening people’s current and future capacities, and improve their opportunities to participate in society and the labour market.

9. Social Impact Partnerships
Impact Investing
Private initiative for public good
Outcomes- based Finance
SIP
CIVIL SOCIETY /
NON-PROFIT
PUBLIC FUNDING
Venture Philanthropy
Outcome Funds
Sustainable - Green
Responsible - ESG
NO HARM
PRIVATE /
COMMERCIAL
PPP
Results-based
Contracts
Social Impact Partnerships
SIPs
Cross-sector collaboration
Prevention models
Innovation
Social Economy
Co-Creating Value
Overcoming the spiral model of social innovation – towards co-creation and co-management of public services?
Long-term horizons
Systemic
Change
Innovation in
Public
Management

10. Thank you! georgia.efremova@ec.europa.eu
The soul of the new economy is fundamentally social, and paradigmatically impact-driven.
Thank you!