Brussels, March 2015

DEEP GREEN InitiativeDEEP GREEN Initiative DEEP GREEN InitiativeDEEP GREEN Initiative

EIB development areas for Energy Efficiency

Energy and Managing AuthoritiesEMA network meeting

1. DEEP Green.

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Banks Compartment

DEEP Green Initiative

Utilities Compartment

ESCOs Compartment

Public sector Compartment

Technical Assistance

New EE products.

Aggregation & de-risking.

More lending to EE.

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Goal: Incentivising commercial banks and other EIB financial intermediaries to address the energy efficiency sector as a distinct segment.

2. DEEP Green – Banks compartment.

Private Finance for Energy Efficiency (PF4EE)

www.eib.org/pf4ee

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2.1 PF4EE - Objectives

The purpose of the PF4EE Instrument is to provide access to adequate and affordable commercial financing for Eligible EE Investments targeted by schemes developed by Participating Countries to implement their National Energy Efficiency Action Plans (“NEEAPs”) or other programmes in line with EU Directives.

The two main objectives of the PF4EE Instrument are:

(i) making energy efficiency lending a more sustainable activity across European financial institutions by incentivising them to address the energy efficiency sector as a distinct market segment; and

(ii) increasing the availability of debt financing to Eligible EE Investments.

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2.2 PF4EE - Structure

PF4EE supports eligible EE Investments targeted by schemes developed by Member States by providing 3 components:

EIB financing with long tenor, specific reporting requirements and flexible allocation rules. (The PF4EE Energy Efficiency Loan);

Up to 80% coverage of credit losses on a loan by loan basis up to a given amount (The PF4EE Risk Sharing Facility) ;

A technical training and consultancy services aiming at supporting EE financing at FI level (The PF4EE expert Support Facility).

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2.3 PF4EE – Eligibility criteria

Banks Private sector financial institutions or public sector institutions that operate on

market terms. Sound financial standing and robust credit assessment systems.

Investments In line with Member State EE priorities. In line with EU Directives. In line with EIB EE eligibility criteria Eligible under an EE programme/scheme.

Beneficiaries Final Recipients targeted by Participating Countries’ NEEAP. They may include, inter alia, natural persons, home-owner associations,

enterprises, public institutions/bodies and any other legal entities undertaking Eligible EE Investments.

Loans Maximum amount EUR 5 million and maximum tenor 20 years Fixed repayment schedule (no revolving loan), with a capped grace period

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2.4 PF4EE - Risk protection

Risk Sharing Facility will cover up to 80% of losses on a loan by loan basis up to a maximum amount set at the Expected Loss level of the targeted portfolio.

It is intended to achieve regulatory capital relief for financial intermediaries, but subject to confirmation at local regulatory level.

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2.5 PF4EE – Technical assistance

Expert support to be provided would be defined individually for each Financial Intermediary but with three objectives :

(i) ensuring the actual lending to Eligible EE Investments within the framework of the PF4EE Instrument takes place,(ii) developing capacity to make energy efficiency lending sustainable within the concerned Financial Intermediary and (iii)guaranteeing the correct reporting of the impact of the EE Investments supported by the PF4EE Instrument.

The technical assistance will be cover the following areas:

(i) Staff training on energy efficiency;(ii) Development of energy efficiency products;(iii)EE Loans portfolio development;(iv)Appraisal of energy efficiency investments;(v) Risk analysis of individual projects and programmes;(vi)Reporting on energy savings and CO2 emissions;(vii) Energy audits.

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2.6 PF4EE – Potential EMAs participation

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Goal: Facilitating access to public sector counterparts to long-term funding for the financing of EE projects and/or to support MS EE programmes for EE (including for residential homes), through “limited/non-recourse” and/or “off-balance” structures, where possible.

3. DEEP Green – Public sector compartment.

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Goal: Developing the ESCO market in the EU, in particular the “energy performance contracting” market, by providing limited/non-recourse re-financing structures for the ESCOs.

4. DEEP Green – ESCOs compartment.

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Goal: Developing re-financing structures based on securitisation or comparable financial solutions together with utility companies to mobilise from their balance sheets the financing of EE measures for small end-consumers.

5. DEEP Green – Utilities compartment.

Contacts.

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Christopher KnowlesHead of DivisionClimate Change and Environmentknowles@eib.orgTf: + 352 4379 8 7306

Manuel DueñasDeputy Head of DivisionClimate Change and Environmentduenas@eib.orgTf: + 352 4379 8 7215