Brussels, 12/07/2011 (Agence Europe) - The European Commission, the European Investment Bank (EIB), the Cassa Depositi e Prestiti (CDP) and Deutsche Bank announced the launch of the European Energy Efficiency Fund (EEEF) at the start of the month. The EEEF aims to provide market-based financing for commercially viable public energy efficiency and renewable energy projects within the European Union.
The fund is the centrepiece of a new sustainable energy facility that the European Parliament and EU Council of Ministers agreed to launch using unspent funds from the European Energy Programme for Recovery for a new sustainable energy facility. It will help EU member states meet their objective of reducing greenhouse gas emissions by 20%, increasing renewable energy usage by 20%, and lowering energy consumption through a 20% improvement in energy efficiency by 2020. It will target the substantial potential for energy efficiency and small scale renewable energy in the European public sector.
The fund will pursue a two-track investment approach, either investing directly in projects or via financial institutions. It has a layered risk/return structure to stimulate private investment with a fixed commitment of EU budget funds.
The European Commission is investing €125 million in the junior tranche of the fund, partly assuming the economic risks associated with the investment projects. The European Investment Bank is committing €75 million in the mezzanine tranche and in senior shares. Further commitments are from the Cassa Depositi e Prestiti (CDP), contributing €60 million also in mezzanine and senior shares, and €5 million in the mezzanine tranche by Deutsche Bank.
The fund aims to raise the total volume from the current €265 million to approximately €800 million by attracting further investors. A technical assistance facility is also available to support investments pursued under the EEEF. (O.L./transl.rt)