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

1. 4 Funding for sustainable energy:Encouraging rational energy use in the EU EU funding for sustainable energy

2. 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

3. 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

4. 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

5. 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

6. 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

7. In the country • Rural development can contribute to targets to cut greenhouse gas emissionsunder 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

8. 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

9. 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

10. 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

11. 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

12. 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