(Credit: EIB)The European Commission Directorate for Regional and Urban Policy and the European Investment Bank have launched two new model financial instruments in support of the REPowerEU and New European Bauhaus initiatives. The models give options on how to combine EU grants together with loans on favorable terms to finance investments in support of energy efficiency and territorial development investments.
The models offer a path to leverage the funds available through the EU budget as well as EIB co-financing, to mobilize additional resources from commercial banks and private investors for such schemes.
The models – one for energy efficiency investments under REPower EU, and one for projects associated with the New European Bauhaus initiative – will give authorities who manage EU funds, as well as financial intermediaries such as banks, a practical “how to” guide to easily set up financial instruments, to provide funding and advisory support to investments in energy efficiency and territorial development. They include a menu of options, which provide tangible and practical solutions to common challenges encountered by financial instrument practitioners, the organizations say.
The model financial instruments were developed jointly under fi-compass, an advisory mandate managed by the EIB’s Advisory Services and the European Commission. Financial instruments have a long track-record in promoting energy efficiency interventions in both public buildings and private housing around Europe as well as in supporting urban and territorial development, the European Commission points out.
The models provide an incentive for local authorities as they will be backed by a major commitment of Cohesion policy resources by the European Commission, to support the use of financial instruments to meet the objectives of the Green Deal.
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