Ex-ante assessment methodology for financial instruments in the 2014-2020 programming period: Supporting the shift towards low-carbon economy (Thematic objective 4) - Volume IV

This methodology is intended as a toolbox encompassing good practices and providing practical guidance to Managing Authorities (MAs) in the preparation and the realisation of the ex-ante assessment of the Financial Instrument (FI) envisaged in the Programme(s)., as required by Article 37 (2) of the Common Provisions Regulation (CPR). MAs are required to establish evidence of market failures or suboptimal investment situations, the estimated level and scope of public investment needs, and select the type of FI to be supported. The ex-ante assessment process should also allow MAs to ensure that ESI Funds resources allocations to FIs are fully aligned with the objectives of ESI Funds and Programmes and are used in accordance with the principle of sound financial management (meaning in the most economic, efficient and effective way).

The present document constitutes Volume IV of the ex-ante assessment methodology dedicated to sectors related to Thematic Objective 4, notably: "Supporting the shift towards low-carbon economy". It aims to present some of the specificities of these sectors which need to be taken into account for the ex-ante assessment of the FI, to propose tools adapted to these sectors and to share related good practices.

This sector-specific guidance should be used in parallel with Volume I – Ex-ante assessment methodology, as the common descriptions and tools of the general methodology are not repeated in this volume. At the same time, some sections of this sector-specific methodology might be less extensive in cases where the general methodology of Volume I is sufficiently covering ex-ante assessment requirements for FIs under Thematic Objective 4. The structure of this specific methodology follows the same structure as Volume I, which has been developed around the seven main groups of requirements for ex-ante assessments as set out in Article 37(2) of the CPR, namely:

• Analysis of market failures, suboptimal investment situations and investment needs;
• Assessment of the value added of the FI;
• Estimate of additional public and private resources to be potentially raised by the FI;
• Assessment of lessons learnt from similar instruments and ex-ante assessment carried out in the past;
• Proposed investment strategy;
• Specification of expected results;
• Provisions allowing the ex-ante assessment to be reviewed and updated.

The different elements of the ex-ante assessment can be performed in stages, as foreseen by Article 37(3), and MAs are not obliged to strictly follow the order described in Article 37 (2).

As a result, the ex-ante assessment is to be conceived more as an iterative process rather than as a strictly linear one. This means that MAs will most likely go back and forth in its elaboration and will have to ensure the coherence of the whole assessment before it is finalised.