The European Commission and the European Investment Bank (EIB) have recently launched two new financial instruments under the European LIFE Programme for the Environment and Climate Action: the tool Private Financing for Energy Efficiency (PF4EE) and the Natural Capital Financing Facility (NCFF).
The Private Financing for Energy Efficiency (PF4EE) will fund projects focusing on energy efficiency that have limited access to credit.
Combining EIB lending to those of intermediary banks in the Member States, PF4EE wants to guarantee more loans for energy efficiency projects and technical assistance programs aimed at increasing the technical capacity of financial intermediaries.
The resources allocated for the period 2014-2017 amount to 80 million euro.
The final beneficiaries of the instrument will include SMEs, private individuals, small municipalities or other public sector entities; the available funding can range from 40.000 to 5 million euro .
The Natural Capital Financing Facility (NCFF) is designed to achieve the objectives of LIFE Programme in the priority areas of intervention “Nature and Biodiversity” and “Climate Change Adaptation”.
The instrument provide financial solutions in support of projects for the conservation, management and enhancement of natural capital, and that have the potential to be revenue-generating or cost-saving.
NCCFF has a budget 100-125 million euro for the period 2014-2017. The European Commission provides up to 50 million euro as a guarantee on investment and 10 million euro to finance the implementation of projects.
The tool will be developed in two phases:
1. Pilot phase: in order to test various financing options (2014-2017);
2. Operational phase: search for additional resources from private/public investors on the basis of the results of the pilot projects (2017-2020).
The beneficiaries can be public or private entities, such as public authorities, landowners and businesses. The instrument will finance projects worth between 5 and 15 million euro, in four areas: ecosystem services, green infrastructure, biodiversity and innovative investment for biodiversity and climate change adaptation .
For more details please visit the specific sections on the website of LIFE Programme:
Private Financing for Energy Efficiency (PF4EE)
Natural Capital Financing Facility (NCFF):