Range of LIFE funding has been expanded
- Start date : 09/12/2014 14:04:57
The Private Finance for Energy Efficiency (PF4EE) is the first of two new financial instruments under the LIFE programme for the Environment and Climate Action. It aims to increase private financing for investments in energy efficiency projects. The Commission has committed €80 million for 2014-17 anticipating an 8-fold leverage effect. The management of the PF4EE is entrusted to the European Investment Bank (EIB).
The PF4EE will support Member States in making progress in view of the EU's agreed targets on energy efficiency. It will combine lending from the EIB to financial intermediaries with protection against losses associated with making loans for energy efficiency projects, provided by LIFE budget. The financial instrument will help intermediary banks in Member States to develop and offer specific loan programmes for energy efficiency projects. These loan programs will be aligned with the National Energy Efficiency Action Plans. The PF4EE will also provide technical assistance aiming at increasing the technical capacity of the financial intermediaries to develop specific loans for energy efficiency.
The target final recipients for the PF4EE could include Small and Medium-sized Enterprises and private individuals (e.g. house or hotel owners), small municipalities or other public sector bodies undertaking small energy efficiency investments, capable of using energy savings to repay up-front borrowing. The size of the energy efficiency loans to be provided to the final beneficiaries could range between €40,000 up to €5 million and be higher in exceptional cases.