In addition to project grants, LIFE funding is channeled through two financial instruments, the Private Finance for Energy Efficiency (PF4EE) and the Natural Capital Financing Facility (NCFF).
Private Finance for Energy Efficiency (PF4EE) instrument is a joint agreement between the European Investment Bank and the European Commission which aims to address the limited access to adequate and affordable commercial financing for energy efficiency investments.
The instrument targets projects which support the implementation of National Energy Efficiency Action Plans or other energy efficiency programmes of EU Member States.
Halting the loss of biodiversity and adapting to climate change requires increasing investment in natural capital.
To do so, the European Investment Bank and the European Commission have partnered to create the Natural Capital Financing Facility (NCFF), a financial instrument that supports projects delivering on biodiversity and climate adaptation through tailored loans and investments, backed by an EU guarantee.
At the same time, projects financed through the NCFF need to generate revenues or demonstrate cost savings.
The LIFE financial instruments complement the Investment Plan for Europe, which aims to remove barriers to investment through complementary actions at EU and national level.