Brussels, 16/02/2015 (Agence Europe) - On Monday 16 February, the European Commission and the European Investment Bank (EIB) joined forces to launch the Private Finance for Energy Efficiency (PF4EE) and the Natural Capital Financing Facility (NCFF) schemes. €125 million will initially be unlocked to stimulate public and private investment in energy efficiency, adaptation and climate change and environmental protection.
The Commission has committed €80 million and is hoping for a multiplier effect of 8 to leverage private funds. The EIB's contribution is €45 million.
During the launch ceremony, Jonathan Taylor, European Investment Bank vice-president responsible for climate action and energy, explained, “We welcome the opportunity to contribute both technical expertise and financial support to increase investment in energy efficiency and natural capital through the two initiatives being launched today. These will help financial institutions and other investors to increase their role and contribute to improving specialist understanding essential for the financing of viable projects in these areas”.
It is expected that at least €500 million of dedicated financing to reduce energy bills will be unlocked by the Private Finance for Energy Efficiency facility by providing long-term low-cost loans and credit risk protection to financial intermediaries from specialist banks in member states.
The Natural Capital Financing facility (NCFF) scheme will have a total budget of between €100-125 million for the 2014-2017 period. It will support sustainable environmental protection projects (such as green infrastructure) that help protect ecosystem services linked to or contributing to climate change adaptation. It
will begin with a 3 to 4 year pilot phase and is expected to finance nine to twelve operations. It will also be supported by a dedicated €10 million technical assistance programme.
Miguel Arias Cañete, European commissioner for climate action and energy, and Karmenu Vella, European commissioner for environment, maritime affairs and fisheries, underlined the importance of these instruments for Energy Union and helping “biodiversity blossom and truly become an engine for growth”. (Aminata Niang)