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4Funding for sustainable energy:Encouraging rational energy use in the EU

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4Introduction

A number of mechanisms at EU level to finance efficient use of energy

The Intelligent Energy Europe programme (IEE) supports non technological actions to encourage sustainable energy - budget of €730 million for 2007-13

Energy a priority in regional funding instruments - the ‘cohesion’ and ‘structural’ funds - major part of overall EU budget

Funding for small and medium-sized businesses (SMEs) - can help improve competitiveness through efficiency measures

The Seventh Framework Programme (FP7) helps develop new efficiency and renewable energy technologies and get them to market

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4Environment and energy

LIFE+ (2007-13)

EU’s funding instrument for environmental projects since 1992

Wide range of energy projects in the past - energy production and distribution; industry and commerce; buildings and households; transport and horizontal management approaches

New generation of the programme for 2007-13 (LIFE+) will continue to co-finance sustainable energy projects

http://ec.europa.eu/environment/life/index.htm

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4Innovation and sustainable energy

EU’s Competitiveness and Innovation Framework Programme (CIP) aims to encourage the competitiveness of businesses, particularly SMEs, by supporting innovation

Supports the take-up of innovative environmental technologies and the use of renewable energies and energy efficiency

http://ec.europa.eu/cip/index_en.htm

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4Good Practice 1Energy Check in Small and Medium Craft

Enterprises (IEE funded)

Developed a standardised energy check tool for SMEs

Small businessmen qualified as ‘energy checkers’ and can audit other small businesses

Five businesses in five countries: Bulgarian carpenters, German bakers, Greek bricklayers/glass producers/paint producers, Irish small food producers and Spanish meat producers

http://ec.europa.eu/energy/intelligent/projects/doc/factsheets/e_check_in_craft_sme.pdf

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4Sustainable regionsSustainable energy supported by two of the three regional development funds – the European Regional Development Fund (ERDF) and Cohesion Fund

Three overarching objectives:

Convergence - boosting the economies of the least prosperous regions

Regional competitiveness and employment - with a particular focus on promoting clean urban transport

European territorial cooperation - joint initiatives across borders

http://ec.europa.eu/regional_policy/funds/feder/index_en.htm

http://ec.europa.eu/regional_policy/funds/cf/index_en.htm

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4In the countryRural development can contribute to targets to cut greenhouse gas emissions under the Kyoto Protocol

Sustainable energy projects qualify for funding from the European Agricultural Fund for Rural Development (EAFRD 2007-13)

Agriculture and forestry provide raw materials for bio-energy and contribute to reductions in greenhouse gas emissions

The development of renewable energy can help diversify rural economies

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4Good Practice 2Wood to heat a school, Germany (ERDF funded)

Municipality of Walsdorf, near Bamberg, built a kindergarten in 1993 with a biomass heating system fuelled by wood chips Local farmers, businesses and the authorities set up a company to operate the plant and provide wood chipsHeating system now extended to neighbouring houses and retirement homeSecond plant is being built to heat new housing developmentUses 650 tonnes of locally-grown wood per yearCosts €150,000 per yearSubstitutes 170,000 litres of fuel oilCuts CO2 emissions by 400 tonnes per yearSO2 and NOx emissions cut by 750 tonnes per year

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4Research and development

Seventh Framework Programme for Research and Development (FP7) funds technological projects in energy efficiency, saving and renewables

Examples of projects: hydrogen and fuel cells, renewable electricity generation and renewable fuel production

http://ec.europa.eu/research/future/index_en.cfm

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4Investment sources

European Investment Bank and the European Bank for Reconstruction and Development provide financing for energy projects through:

JASPERS (Joint Assistance to Support Projects in European Regions) supports preparation of infrastructure projects, principally in new Member States and accession countries

Environmental projects, including energy efficiency and renewable energy, are one of the key areas covered by JASPERShttp://jaspers.europa.eu/

JEREMIE aims to improve access to finance for micro business and SMEs. Emphasises technology transfer, start-ups, micro credit, technology and innovation funds

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4Investment sources (cont’d)

JESSICA is a joint initiative of the European Commission and the EIB

Helps authorities exploit EU cohesion mechanisms supporting sustainable urban development and providing new opportunities

Authroities can use European Regional Development Funds (ERDF), European Social Fund (ESF)and Urban Development Funds (UDFs) to accelerate investment in urban areas

Risk Sharing Finance Facility (RSFF) provides additional support to research, development and innovation projects in Europe. The first RSFF financing operations focus on renewable energy technologies, a priority for the EIB in 2007

http://www.eib.europa.eu/

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4What is ManagEnergy?

Initiative by European Commission Directorate-General for Energy and Transport

Supports local and regional actions on energy efficiency and renewable energies

Training workshops/online events

Information on case studies, good practices, legislation and programmes

Network of local and regional energy agencies (LEAs)