Fund title: LIFE: new financial instruments for energy efficiency and natural capital
Focus of fund/fund aims:
Financing mechanisms for energy efficiency projects and pilot projects to preserve natural assets
Two new financial instruments are now available through the LIFE Programme:
Private Finance for Energy Efficiency (PF4EE) aims to increase private financing for investments in energy efficiency projects. With a total of €80 million, the instrument will combine lending from the European Investment Bank (EIB) to financial intermediaries with protection against losses associated with making loans for energy efficiency projects. Specific loan programmes for energy efficiency projects which align with national energy efficiency action plans will then be made. The final beneficiaries are expected to include SMEs and private individuals (such as house or hotel owners) as well as public-sector bodies undertaking small energy efficiency investments. The size of loans is expected to range between €40,000 and €5 million.
Financial Intermediaries which want to participate can apply up until 30 June 2017.
The Natural Capital Financial Facility (NCFF) will also be managed by the EIB and will provide loans and investments to support projects which promote the preservation of natural capital, including adaptation to climate change.
The main aim of the NCFF is to demonstrate that natural capital projects can generate revenues or save costs whilst delivering on biodiversity and climate adaptation objectives.
Recipients will be public and private organisations, including public authorities, land owners and businesses. Projects will typically be between €5 million and €15 million. Finance will be provided to project developers both directly and indirectly through financial intermediaries.
Projects potentially eligible for funding fall into four broad categories:
- payments for ecosystem services
- green infrastructure
- biodiversity offsets
- innovative pro-biodiversity and adaptation investments
Potential project developers can contact the EIB at any time to express an interest in the facility and to discuss the suitability of their ideas.