"*" indicates required fields 1Introduction2Funding Simulator3Simulation results Spotting all EU funding opportunities that support neighbourhoods and home transformation is an enormous task. To support social and affordable housing providers, as well as SMEs, the capacity-building programme of the European Affordable Housing Initiative turned our Funding Handbook into an automated search for opportunities and information about inspirational approaches in other countries into a digital tool. We called it a Funding Simulator. The tool provides a snapshot of the instruments included in the Funding Handbook, is free to use and guides local industry partners to existing public or private funding sources for their renovation projects at the district level. Just as with any search, users of the Funding Simulator can choose whether they are a homeowner, part of a multi-ownership, public institution, or a private entity; point the scale of the project; the cost, and even the country. Give it a go and make sure to test multiple options. The data provided has been collected up to December 2023 and is subject to change over time; therefore, it may not accurately reflect the current reality at the time of the simulation. Hence, it is advisable to consult the entities that manage these funding options in order to discover new or updated funding opportunities. The Housing Europe team aims at ensuring the functionality and relevance of the tool in the long-term for it to serve public, cooperative, social housing providers and SMEs. Promoter*Make a choiceHomeownerOrganized Multi-ownershipPublic InstitutionPrivate entitiesThrough this link, you can read the description of the various funding simulator promoters.Scale of the project*Make a choiceSingle dwellingsScale of the project*Make a choiceMulti-residential buildingService infrastructureScale of the project*Make a choiceDistrict levelMulti-residential buildingService infrastructureScale of the project*Make a choiceDistrict levelMulti-residential buildingService infrastructureProject cost*Make a choiceLess than € 100kProject cost*Make a choice€ 1m - € 10mMore than € 100mLess than € 5mLess than € 1mProject cost*Make a choiceLess than € 1m€ 1m - € 10mLess than € 5mProject cost*Make a choiceLess than € 5mProject cost*Make a choiceLess than € 1mLess than € 5m€ 1m - € 10mProject cost*Make a choiceLess than € 1mLess than € 5m€ 1m - € 10m€ 1m - € 100mMore than € 100mProject cost*Make a choice€ 1m - € 10m€ 1m - € 100mLess than € 5mMore than € 100mProject cost*Make a choiceLess than € 1mLess than € 5m€ 1m - € 10mProject cost*Make a choiceLess than € 1mLess than € 5m€ 1m - € 10m€ 1m - € 100mProject cost*Make a choiceLess than € 5m€ 1m - € 10m€ 1m - € 100mMore than € 100mCountry*Make a choiceBelgiumEstoniaEuropeFranceItalyLithuaniaRomaniaSpainPortugalThe NetherlandsCountry*Make a choiceBelgiumEuropeFrancePortugalCountry*Make a choiceBelgiumCountry*Make a choiceEuropeLithuaniaSpainCountry*Make a choiceSpainCountry*Make a choiceEstoniaEuropeFranceLithuaniaPortugalSpainThe NetherlandsCountry*Make a choiceEuropeCountry*Make a choiceItalySpainThe NetherlandsCountry*Make a choiceEuropeFranceThe NetherlandsCountry*Make a choiceEuropeFranceLithuaniaSpainCountry*Make a choiceSpainCountry*Make a choiceEuropeCountry*Make a choiceEuropeCountry*Make a choiceEuropeLithuaniaRomaniaCountry*Make a choiceSpainCountry*Make a choiceEuropeCountry*Make a choiceEuropeFranceLithuaniaRomaniaCountry*Make a choiceEuropeSpainCountry*Make a choiceEuropeSpainCountry*Make a choiceEuropeFranceCountry*Make a choiceEuropeThe NetherlandsCountry*Make a choiceSpainCountry*Make a choiceEuropeFranceCountry*Make a choiceEuropeCountry*Make a choiceEuropePortugalCountry*Make a choiceSpainCountry*Make a choiceEuropeSwitzerlandThe NetherlandsCountry*Make a choiceEuropeBelgiumCountry*Make a choiceEuropeCountry*Make a choiceSpainCountry*Make a choiceEurope Homeowner - Single dwellings - Less than 100k - Belgium Financing instrument Loans Who provides the financing and through which entity? Brussels Green Loan Scheme, In 2008, the Ministry of Energy and Environment in Brussels introduced the 'Social Green Loan' program. This initiative facilitated through a partnership with credit co-operative CREDAL, offers financial assistance to individuals with low income. What makes this program unique is that it provides loans at a 0% interest rate. In 2012, the program underwent a name change and became known as the Brussels Green Loan. Alongside this rebranding, a dedicated organization called Energy House was established to serve as the primary point of contact for applicants. Energy House takes on the responsibility of providing information and support throughout the loan application process. How much is the investment? To ensure the program's success, an annual allocation of €200,000 from the Regional Energy Fund is utilized to subsidize interest rates. Additionally, an amount of €124,000 from the regional budget is allocated to cover the operational costs associated with running the program. Over the course of its initial five years, more than 520 loans were distributed, totalling an impressive sum of over €4.5 million in bank loans. Link(s) https://www.interregeurope.eu/sites/default/files/inline/TO4_PolicyBrief_Financial_Instruments.pdfHomeowner - Single dwellings - Less than 100k - Estonia Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Estonia established the KredEx Revolving Fund in 2009, which uses European Structural Funds to offer a 15%, 25%, or 40% reconstruction grant, coupled with a preferential loan offered by national banking partners. What can financing be used for? Renovation of the apartment building in order to achieve energy savings (It was expected to be 20% of savings, and in the end was 40%). It offers a solution to a range of promoters, KreDex provides soft loans, loans guarantees and grants to homeowners. Energy audit is mandatory to access KredEx funding. The fund targets energy efficiency investments that have been defined as priority measures in an energy audit. Link(s) https://www.interregeurope.eu/sites/default/files/inline/TO4_PolicyBrief_Financial_Instruments.pdf http://citynvest.eu/content/kredex-revolving-fund-energy-efficiency-apartment-buildingsHomeowner - Single dwellings - Less than 100k - Europe Example 1 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Private residential owners could access Cohesion Funding, through grants provided by public authorities and, eventually, to financing, if there is a FI supporting such investment. . It is up to national entities (the Managing authorities) to decide the amount of cohesion funds to support building renovations, either as grants or to develop new FIs (Financial Instruments) with the same purpose. How much is the investment? In the current programming period 2021-2027, EU funds allocated to the Cohesion Policy amount to €392 billion. The Cohesion Policy Funds support, through its investments five policy objectives (POs). The Cohesion Fund supports PO2 (PO2: a Greener, carbon-free Europe). Social and affordable housing renovations are aligned with PO4, as it is a specific objective of the European Pillar of Social rights. What can financing be used for? Green investments in building renovations, affordable buildings or not, are supported by PO2. The different funds are the following: - The European Regional Development Fund (ERDF) will support investments in all 5 policy objectives, but PO1 and PO2 are the main priorities. - The European Social Fund Plus (ESF+) main priority is PO4. - The Cohesion Fund (CF) supports policy objectives PO2 and PO3. - The Just Transition Fund (JTF) provides support under dedicated specific objectives (art. 8 of JTF regulation, essentially PO2). Other interesting aspects? National entities (managing authorities) are responsible to decide the amount of Cohesion Funds to support building renovations through grants. Link(s) https://www.fi-compass.eu/funds/erdfExample 2 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The NextGenerationEU is a temporary instrument that was set up in 2020 to address the socio-economic impacts of the COVID-19 pandemic on Member States through the Recovery and Resilience Facility for the 2021-2027 period. How much is the investment? The funding of the NextGenerationEU through the Recovery and Resilience Facility is €338.0 billion in grants. What can financing be used for? The funds under the Recovery and Resilience Facility (RRF) are being distributed according to national recovery and resilience plans prepared by each Member State, in cooperation with the European Commission, and in line with an agreed allocation key. Objectives and project eligibility criteria for the RRF are indicated in each National Recovery and Resilience Plan, but, in general terms, are similar to the general EU policy’s objectives. All types of projects that minimize the carbon footprint, such as renewable energy buildings and energy production facilities, are eligible. Other interesting aspects? For specific information about how the recovery plans have been deployed in each EU country the report on the impact of the recovery plans on the social housing and affordable housing sector done by Housing Europe can be consulted at the following link: https://www.housingeurope.eu/resource-1635/impact-of-the-recovery-plans-on-the-social-and-affordable-housing-sector Link(s) https://ec.europa.eu/info/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.htmlExample 3 Financing instrument On tax/on-bill Who provides the financing and through which entity? A mechanism for repaying energy efficiency investments is whereby payments are recovered through the existing payment collection infrastructure, such as through utility bills (on-bill) or property tax (on-tax). On-tax financing, the so-called PACE programme has been developed in the EU as a pilot, financed by the Horizon programme (EuroPACE programme). Property Assessed Clean Energy (PACE) Programs are innovative mechanisms to promote energy efficiency investments. Loans are offered by local government or banks. Loans are attached to the house itself, giving access to financing to low-income homeowners. Under this program, a loan is given to a building owner, but the loan is attached to the property and reimbursed through property taxes. If the building is being rented, the tenant pays the tax and benefits from the energy savings. What can financing be used fot? Specifically to conduct energy-efficiency works. Other interesting aspects? On-bill financing has been used in two building renovation initiatives in Europe, Energiesprong and the Green Deal in the UK. This initiative has had difficulty scaling up. Link(s) https://www.case-research.eu/en/farewell-europace-101858 https://europace.gnefinance.com/Example 4 Financing instrument Green Mortgage Who provided the financing and through which entity? Green mortgages have been promoted in Europe through the Energy Efficient Mortgages Institute (EEMI), a global market-led initiative. Green mortgages can only be offered directly by financial institutions to homeowners. As such, EEM offers a big opportunity to unlock financing for renovation from the private sector as they bring mortgage banks and traditional lending institutions into the green building market. Failure to pay back the loan could result in the seizure of the asset, as it is a mortgage on the dwelling. Since it is expected that energy efficiency loans should have a lower default risk than regular consumer loans, banks may be willing to offer preferential rates and conditions to homeowners for this type of loan. This is an opportunity for borrowers to select personalised conditions with preferential conditions addressing their financial priorities. Preferential terms can include longer repayment terms, preferential rates, free early repayment and extended grace period. Energy efficiency renovation works impact in diverse ways both the borrowers and the buildings’ risk profiles. What can financing be used for? Energy efficiency mortgages (EEM) (also known as green mortgages) are loans intended to finance the purchase, construction, or renovation of buildings where energy performance meets a high energy efficiency certificate or where planned works will significantly reduce the energy consumption of the building. Link(s) https://cordis.europa.eu/project/id/746205Homeowner - Single dwellings - Less than 100k - France Financing instrument Combination of different financing instruments Who provides the financing and through which entity? TEPCV is a law (Loi relative à la transition énergétique pour la croissance verte, Law on the energy transition for green growth) in 2015 to facilitate the financing of energy efficiency improvements in existing housing through the guarantee fund for energy renovation (FGRE). It enables banks to benefit from a guarantee when granted. Concerning subsidies for the renovation of private housing, they are regulated and managed by the Anah (national agency for housing), which is a public entity under the supervision of the ministries of Territorial Cohesion and Relations with local authorities, Ecological Transition and the Economy, Finance and Recovery. The Anah deploys several financing mechanisms for low-income owners to trigger large energy renovation for individual houses and multi-apartment dwellings through MaPrimeRénov, either for single renovation acts or for global renovations. How much is the investment? The aids depend on the household’s incomes which are divided into four profiles: very-low-income, low-income, intermediary-income and high-income households. What can financing be used for? The Anah encourages renovation and rehabilitation of housing by granting financial aid to low-income owners and to fragile and struggling condominiums. Its mission is to improve the state of the existing private housing stock and to fight against social and territorial fractures. Other interesting aspects? There is a list of private banks that offer competitive financing, such as a zero-interest loan (called Eco-PTZ). Link(s) https://www.anah.fr/qui-sommes-nous/ https://www.anil.org/documentation-experte/analyses-juridiques-jurisprudence/analyses-juridiques/analyses-juridiques-2016/fonds-de-garantie-pour-la-renovation-energetique-fgre/#:~:text=Le%20fonds%20de%20garantie%20pour%20la%20r%C3%A9novation%20%C3%A9nerg%C3%A9tique%20peut%20garantir,%C3%A0%20charge%20de%20leurs%20travauxHomeowner - Single dwellings - Less than 100k - Italy Financing instrument On tax/on-bill Who provided the financing and through which entity? In Italy, since 2007 a policy based on tax credits of 50-65% has been put in place aiming at reducing emissions by increasing energy efficiency in private and public buildings. In 2020, this set of measures has been extended, leading to the so-called Superbonus: it provides a tax credit of up to 110% of expenses aimed at increasing the energy efficiency of public, cooperative and private residential buildings. Furthermore, the regulatory framework allowed to assign the Tax claim to banks and financial institutions, to guarantee access to incentives also to the most fragile strata of the population. In February 2023, a new law decree was enacted to stop the effects of the Superbonus 110% invoice rebates applied by the construction sector companies to end clients and the consequent assignment of tax credits incentives. What was financing used for? Energy efficiency. It was depicted as a “win-win” option, which allowed to save money and reduce environmental externalities at the same time. Link(s) https://www.governo.it/it/superbonus https://it.wikipedia.org/wiki/Superbonus_110%25Homeowner - Single dwellings - Less than 100k - Lithuania Example 1 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Guarantees for building renovation: EIB and Šiaulių Bankas continue financing loans for energy efficiency increase in multi-apartment houses in Lithuania. Siauliu Bankas are granting loans for the modernization of multi-apartment buildings through approved instruments on a legal basis. The loan term is 20 years. How much is the investment? This project was launched in 2016 and, since the start of the Multi-Apartment Building Modernization Program, more than 2,500 multi-apartment buildings or 70,000 apartments have been renovated, with a total investment during this period of €600 million. The EIB provided a €30 million guarantee from the European Regional Development Fund (ERDF) for a portfolio of €150 million in loans granted by Siauliu Bankas to homeowners for the modernization of their properties. This public-private partnership has made it possible to maximize the use of EU funds for the renovation program. What can financing be used for? In 2019, the EIB and Siauliu Bankas signed a new guarantee agreement to continue and renew their financing for the energy-efficiency renovation of Lithuanian multi-apartment buildings. Other interesting aspects? The financing situation in Lithuania has shifted from using financial intermediaries as agents to disburse ERDF and national funds, to an ERDF-backed guarantee to banks, which are using their funds to provide Modernization Loans. This last step has greatly improved the leverage of this financing, maximizing the number of households that can receive cheaper loans. Link(s) https://www.eib.org/en/press/all/2019-001-new-financing-for-energy-efficiency-loans-in-lithuania-with-siauliu-bankasExample 2 Financing instrument Loans Who provides the financing and through which entity? In Lithuania, the public financing of some EU funds has been gradually replaced by private financing. The local capacity to manage funds has increased, as the most recent funds are managed by the national agency VIPA. The main value added of these funds is to provide homeowners with very competitive funding to renovate their houses. How much is the investment? From EUR 80 million of private funding out of €227 million in the Jessica I to €400 million of private funding out of €500 million for the leveraged fund. What can financing be used for? Renovate the multi-apartment residential buildings, there are also financial incentives for the energy renovation of individual houses, such as replacing inefficient boilers with RES technologies or connecting them to the district heating system. Other interesting aspects? Private banks are more confident to provide this type of financing and there are private initiatives to fund them, without public financing support. From the point of view of the apartment owners, the objective is that the savings on energy bills are higher than the annual payment of the loan. Link(s) https://www.vipa.lt/Homeowner - Single dwellings - Less than 100k - Romania Financing instrument Green Mortgage Who provided the financing and through which entity? The Romanian Green Building Council is working with a consortium of banks and developers to develop the market for green mortgages. A study of 71,000+ homes has shown that mortgages with a Green Homes certification have a 32% reduction in default risk compared to regular mortgages. Through the issuance of Green Mortgages tied to certified Green Homes, financial institutions reduce their mortgage default risk and can, therefore, offer a lower cost of financing. Lower finance costs combined with energy savings have a significant impact on the project cash flow. What can financing be used for? This initiative can certify green residential projects that are environmentally responsible and energy efficient relative to the standard offer in Romania. Link(s) http://rogbc.org/en/projects/green-homesHomeowner - Single dwellings - Less than 100k - Spain Example 1 Financing instrument Grants Who provides the financing and through which entity? The Government of Spain, through the Institute for Energy Diversification and Saving (IDAE), has developed the PREE Program endowed with a package of subsidies aimed at financing the renovation of the housing stock, which is managed in collaboration with the regional governments. How much is the investment? It allocated more than €400 million. What can financing be used for? The PREE Program subsidizes renovation projects ranging from changes in the thermal envelope of the building, to the replacement of thermal installations based on fossil fuels by thermal generation based on renewable sources, with the objective of a minimum reduction of 30% of primary energy consumption from non-renewable sources. Other interesting aspects? A fundamental and noteworthy aspect of the PREE Program is its social scope, since special attention is given to retrofitting actions in spaces that affect vulnerable groups, which in turn are the most affected by energy poverty, and in those municipalities with less than 5000 inhabitants, the PREE-5000 Program, which has independent budget items of €92 million. Link(s) https://www.idae.es/ayudas-y-financiacion/para-la-rehabilitacion-de-edificios/convocatorias-cerradas/programa-preeExample 2 Financing instrument Grants Who provides the financing and through which entity? In the context of the Next Generation funds, the Spanish government has promoted a stimulus plan for the renovation of the housing stock through 6 programs destined for this purpose. To this end, the recent regulatory framework establishes a direct collaboration with the Spanish Comunidades Autónomas, which must promote stimulus programs at the regional level. How much is the investment? Endowed with more than €1,151 million, 6 dedicated stimulus programs for the housing stock, 5 of them stimulate building renovation. As part of these programs “scheduled residential renovation settings” (Entorno Residencial de Rehabilitación Programada – ERRP), which can be subject to social housing, have been defined. This program has an initial budget of 30% of the available budget for renovation programs, and its objective is clearly to improve housing in environments defined by their vulnerability, with aid that can reach up to €21,400 per home. What can financing be used for? All types of energy renovations, as defined in the different programs. Link(s) https://www.boe.es/buscar/act.php?id=BOE-A-2021-16230Example 3 Financing instrument Loans Who provides the financing and through which entity? Union de Créditos Inmobiliarios SA (UCI) BUILDING RENOVATION MBIL. The EIB is supporting UCI with a multi-beneficiary intermediated loan (MBIL) to finance building renovations undertaken by individuals and homeowner associations in Spain and Portugal. UCI acts as an intermediary financial institution and is one of the most active players in green financing in the Spanish market. How much is the investment? The project was signed in 2021, and the approximate amount proposed by the EIB was €50 million. What can financing be used for? The project aims to improve building renovation performance by providing access to finance for homeowner associations and individuals, thereby promoting investment in energy efficiency. Its primary focus is on financing deep renovations led by homeowner associations in Spain and, to a lesser extent, in Portugal. Other interesting aspects? By entering the high-quality segment of building renovation, the EIB will reduce funding expenses and encourage additional investors to participate. This will increase interest in financing home renovation projects carried out by homeowner associations. Link(s) https://www.eib.org/en/projects/pipelines/all/20210137Example 4 Financing instrument Tax incentives Who provided the financing and through which entity? The Government of Spain has provided tax deductions in the IRPF for energy-efficiency housing renovation works that include two fundamental aspects: 1. The aid granted through different public aid programs, including those at the national and regional levels, will not be integrated into the income tax base. 2. The rehabilitation actions in homes that entail an improvement in the energy efficiency of the same, will have a different taxes deduction according to the actions implemented. How much is the investment and what can financing be used for? A deduction of 20% for actions that reduce at least 7% the demand for heating and cooling of habitual residence, up to a maximum of €5,000 per home; a deduction of 40% for actions that reduce by 30% the consumption of non-renewable primary energy in homes, or that reach the energy rating of the letters "A" or "B", up to a maximum of €7,500 per home and a deduction of 60% for actions that reduce by 30% the consumption of non-renewable primary energy in residential buildings, or that reach in their energy classification the letters "A" or "B", up to a ceiling of €15,000 per home. Link(s) https://www.idae.es/noticias/beneficios-fiscales-en-el-irpf-para-la-implantacion-de-energias-renovables-termicasExample 5 Financing instrument Guarantees Who provided the financing and through which entity? The Official Credit Institute (ICO), through direct collaboration with the Ministry of Transport, Mobility and Urban Agenda (MITMA), has developed the 'Line of Guarantees Residential Building Rehabilitation' with the aim of collaborating in the promotion of housing rehabilitation. How much is the investment? It will enable a new line of guarantees for an amount of up to €1,100 million to partially cover the risk of loans for actions of residential buildings’ renovations. Specifically, the state will guarantee up to 50% of the loans offered by financial institutions for these actions, allowing to mobilize of a total of €2,200 million. This line of credit will not represent any additional cost for citizens or for the financial institution and will support to cover the risk of operations carried out with financial institutions, with a maximum of up to € 30,000 guarantee per loan per home, and with a repayment term of up to 15 years. What can financing be used for? Residential building and housing rehabilitation. Link(s) https://www.ico.es/newsletter-ico-octubre-2022/mitma-nueva-línea-de-avales-de-1.100-millones-para-impulsar-la-rehabilitación-de-edificios-residencialesExample 6 Financing instrument Combination of different financing instruments Who provided the financing and through which entity? The Securitization Fund RMBS Green Prado XI, covers a broader spectrum and is oriented towards energy transition and social impact. Through this collaboration, EIB, ICO, and UCI join forces to promote the renovation and construction of residential homes with sustainable criteria in Spain and Portugal. These green investments align with UCI's strategy of providing sustainable financing for individuals and property communities. How much is the investment and what can financing be used for? In the first joint transaction among the three parties, structured through the securitization of a portfolio of residential mortgages originated in Spain amounting to €490 million, the EIB Group and ICO acquire bonds with the aim of facilitating green investments. The funds generated will finance new green and sustainable loans for individuals and property communities undertaking investments in building renovations. The project will contribute to the mitigation of climate change and align with the European Commission's Renovation Wave strategy and ESG standards and goals. Link(s) https://www.eib.org/de/press/all/2023-165-eib-group-and-ico-invest-in-uci-securitisation-fund-for-renovating-and-building-residential-homes-using-sustainable-criteria-in-spain-and-portugal?lang=esHomeowner - Single dwellings - Less than 100k - Portugal Example 1 Financing instrument Combination of different financing instruments Who provided the financing and through which entity? The Securitization Fund RMBS Green Prado XI, covers a broader spectrum and is oriented towards energy transition and social impact. Through this collaboration, EIB, ICO, and UCI join forces to promote the renovation and construction of residential homes with sustainable criteria in Spain and Portugal. These green investments align with UCI's strategy of providing sustainable financing for individuals and property communities. How much is the investment and what can financing be used for? In the first joint transaction among the three parties, structured through the securitization of a portfolio of residential mortgages originated in Spain amounting to €490 million, the EIB Group and ICO acquire bonds with the aim of facilitating green investments. The funds generated will finance new green and sustainable loans for individuals and property communities undertaking investments in building renovations. The project will contribute to the mitigation of climate change and align with the European Commission's Renovation Wave strategy and ESG standards and goals. Link(s) https://www.eib.org/de/press/all/2023-165-eib-group-and-ico-invest-in-uci-securitisation-fund-for-renovating-and-building-residential-homes-using-sustainable-criteria-in-spain-and-portugal?lang=esExample 2 Financing instrument Loans Who provided the financing and through which entity? Union de Créditos Inmobiliarios SA (UCI) BUILDING RENOVATION MBIL. The EIB is supporting UCI with a multi-beneficiary intermediated loan (MBIL) to finance building renovations undertaken by individuals and homeowner associations in Spain and Portugal. UCI acts as an intermediary financial institution and is one of the most active players in green financing in the Spanish market. How much is the investment? The project was signed in 2021, and the approximate amount proposed by the EIB was €50 million. What can financing be used for? The project aims to improve building renovation performance by providing access to finance for homeowner associations and individuals, thereby promoting investment in energy efficiency. Its primary focus is on financing deep renovations led by homeowner associations in Spain and, to a lesser extent, in Portugal. Other interesting aspects? By entering the high-quality segment of building renovation, the EIB will reduce funding expenses and encourage additional investors to participate. This will increase interest in financing home renovation projects carried out by homeowner associations. Link(s) http://rogbc.org/en/projects/green-homesExample 7 Financing instrument Combination of different financing instruments Who provided the financing and through which entity? The Solidarity Fund for Energy Rehabilitation by the Naturgy Foundation does not provide any specific financing contribution, but it is focused on assisting in the rehabilitation of social housing and vulnerable family homes. The Fund is constituted with the contributions made by the Naturgy Foundation. In addition, monetary or in-kind contributions can be made by collaborating entities and companies. What can financing be used for? Founded in 2018, it already has more than 3,000 express rehabilitations, related to wall and ceiling insulation, damp issues, carpentry, boiler repair or replacement, and appliance upgrades, as well as electrical installation repairs, among others. Other interesting aspects? It is included as an example of good practice in the National Strategy against Energy Poverty 2019-2024. It is aimed at homes of vulnerable families owned or managed by public administrations and third-sector entities. Link(s) https://www.fundacionnaturgy.org/accion-social/plan-vulnerabilidad-energetica/fondo-solidaridad-rehabilitacion-energetica/Homeowner - Single dwellings - Less than 100k - The Netherlands Example 1 Financing instrument On tax/on-bill Who provided the financing and through which entity? A great example of on-tax financing that has been successfully developed in 2023 is the Municipality Retrofitting Scheme (GVR) in the Netherlands. The GVR is a collaboration between De Woonpas, municipalities, retrofitting companies and financiers. It was developed with the support of the European Commission (Horizon 2020), within the scope of the FITHOME project. The GVR removes all barriers for homeowners in order for them to participate in the energy transition and profit from a more sustainable home. Homeowners participating in the GVR can retrofit their homes without hassle and without an investment of their own. All homeowners in participating municipalities can register for the GVR. There are no requirements or conditions for participation. For the execution of the GVR, each municipality works together with a local partner. This GVR operator services and unburdens the homeowners in the total process, from A to Z. What can financing be used for? During an extensive home inspection, it is determined which retrofitting measures are possible. These measures consist of insulation, glass and solar panels. The homeowner does not have to invest himself. The local GVR operator takes care of the execution. To guarantee quality, the GVR is only open to carefully selected partners. The participating homeowner pays his municipality a fixed local tax per month as long as he or she owns the house. The GVR is bound to the house and when the house is sold, the GVR passes over to the new owner. The total duration of the GVR is a maximum of 30 years. Besides the fixed tax to be paid per month, there is a saving on the energy bill which is about the same amount. During the term of the GVR, the savings will increase as a result of rising energy prices and inflation. A participating homeowner benefits from a sustainable future-proof home and ever-decreasing monthly costs from day one. Other interesting aspects? As part of the FITHOME project, approximately 150 homes will have undergone complete energy renovations by May 2024. Additionally, the scheme plans to continue its operations thereafter and expand its implementation to a greater number of municipalities across the country. Link(s) https://www.youtube.com/watch?v=_DRw7yvvZ2oExample 2 Financing instrument Grants Who provides the financing and through which entity? The government of the Netherlands has planned that 300,000 existing homes and other buildings would be made more energy-efficient every year. Therefore, many financing schemes exist for private homeowners (especially for low-income) to help them finance the renovation of their homes. The government subsidies are managed by the Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland, RVO) which is an executive body of the Dutch Ministry of Economic Affairs and Climate Policy. How much is the investment? The grant amount is a maximum of €5,000 per home. What can financing be used for? For principal residence owner-occupied homes, the Investment grant for sustainable energy and energy saving (ISDE) (2023 – 2030) will help homeowners finance energy-saving and sustainable measures in their existing home: solar boilers, (hybrid) heat pumps, insulation measures, connections to a heating network and an electric cooking facility. Insulation measures include façade or cavity wall, soil or floor, roof, attic or attic floor insulation, glass, window frames, and door replacement. The funding amount for insulation doubles if two or more insulation measures are taken or if the measure is combined with a heat pump, solar boiler, or connection to a heat network. Link(s) https://www.rvo.nl/subsidies-financieringExample 3 Financing instrument Loans Who provides the financing and through which entity? Owner-occupiers can also obtain a loan with favourable terms for their energy-saving renovation from the National Heat Fund (Nationaal Warmtefonds) through the Energy savings loan. Polestar Bemiddeling was chosen to provide the Energy Saving Loan on behalf of the Heat Fund and take care of the management and administration of the loan. How much is the investment? A homeowner can borrow a maximum of €65,000 and low-income owners can have a zero-rate loan (instead of a 4-4.5% rate). What can financing be used for? This loan can be used to finance all insulation actions, to change the heating system (to heat pumps, combined-heat boiler, connection to a heat network, a high-efficiency boiler, a solar water heater), to install solar panels, an efficient ventilation system, or an energy-monitoring system. It can also finance LED lighting or saving system for lighting and charging stations. Link(s) https://www.warmtefonds.nl/particulierenOrganized Multi-ownership - Service Infrastructure - 1m-10m - Belgium Financing instrument Energy performance contracting (EPC) Who provides the financing and through which entity? Brusol operates in the Brussels-Capital Region, and invests in green electricity (thus contributing to reducing CO2 emissions). The company recovers the investment through green certificates issued by the Region. This business model has been operating since 2018 and remains profitable even though the certificates have been reduced at the beginning of 2023. How much is the investment? They manage the entire installation without charging any fee. It is explained on the web in three easy steps: 1. Register: Contact the company to give details, and arrange a visit to analyse the roof and measure everything. 2. Brusol installs: The company installs solar panels free of charge and in one day. It also has 25-year insurance against fire, water and storm damage. 3. Households save money: they receive cheap green energy for at least the next 25 years. What can financing be used for? Brusol installs the panels completely free of charge and offers the first 10 years of green energy consumption for free and for the following 15 years it offers a kWh rate more beneficial than in any other market. Brusol guarantees 25 years of savings on the bill. Link(s) https://www.brusol.be/en/solarpanelsOrganized Multi-ownership - Service Infrastructure - More than 100m - Belgium Financing instrument Combination of different financing instruments Who provided the financing? ASTER is a cooperative company whose purpose is to attract non-public funding for investments in sustainable energy applications for the social housing sector in Flanders. What can financing be used for? Installation of PV panels as social housing renovation projects. How much was the investment? In July 2022, it succeeded in securing a loan of €150 million from a private bank. The equity capital needed to take out the loan was brought together by social housing private companies through the issue of shares by ASTER. In this way, the limited equity capital acted as a lever to attract the private loan. The loan obtained is 100% de-risked for the issuing bank because there is a regulation in Flanders that avoids the negative consequences of an eventual bankruptcy of a social housing company. In case the company is unable to meet its obligations, the project will continue, and its debts, control and management will be taken over by another social housing company. This loan was granted with special conditions (interest rate of -1%) and allowed ASTER to start, in August 2020, the installation of 30,000 PV panels that will supply energy to more than 30,000 social homes. Other interesting aspects? The project achieved to reduce the electricity bills of all its tenants and allowed the sale of surplus energy to pay off the debt owed to the bank. Also, when 150 MWp of solar panels have been installed, a CO2 reduction of 35,000 tonnes per year will be achieved. Link(s) https://www.aster.vlaanderen/nlOrganized Multi-ownership - Multi-residential building - Less than 5m - Estonia Financing instrument Loans Who provides the financing and through which entity? The Estonian KreDex fund is an example of a provision of favourable debt financing to commercial banks using public funding. KredEx provides favourable funding to commercial banks that extend loans to apartment associations and take the risk of lenders. How much is the investment? The financial product developed targets apartment buildings; measures need to save at least 20% of energy in buildings up to 2000 m2 and at least 30% in buildings above this size. Multi-apartment buildings should have at least 3 apartments and apartment associations or a community of apartment owners. Most important, the loan is provided against cash flow, requiring no further collateral. Link(s) https://www.interregeurope.eu/sites/default/files/inline/TO4_PolicyBrief_Financial_Instruments.pdf http://citynvest.eu/content/kredex-revolving-fund-energy-efficiency-apartment-buildingsOrganized Multi-ownership - Multi-residential building - Less than 5m - Europe Example 1 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The NextGenerationEU is a temporary instrument that was set up in 2020 to address the socio-economic impacts of the COVID-19 pandemic on Member States through the Recovery and Resilience Facility for the 2021-2027 period. How much is the investment? The funding of the NextGenerationEU through the Recovery and Resilience Facility is €338.0 billion in grants. What can financing be used for? The funds under the Recovery and Resilience Facility (RRF) are being distributed according to national recovery and resilience plans prepared by each Member State, in cooperation with the European Commission, and in line with an agreed allocation key. Objectives and project eligibility criteria for the RRF are indicated in each National Recovery and Resilience Plan, but, in general terms, are similar to the general EU policy’s objectives. All types of projects that minimize the carbon footprint, such as renewable energy buildings and energy production facilities, are eligible. Other interesting aspects? For specific information about how the recovery plans have been deployed in each EU country the report on the impact of the recovery plans on the social housing and affordable housing sector done by Housing Europe can be consulted at the following link: https://www.housingeurope.eu/resource-1635/impact-of-the-recovery-plans-on-the-social-and-affordable-housing-sector. Link(s) https://ec.europa.eu/info/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.htmlOrganized Multi-ownership - Service Infrastructure - Less than 5m - Europe Example 1 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The NextGenerationEU is a temporary instrument that was set up in 2020 to address the socio-economic impacts of the COVID-19 pandemic on Member States through the Recovery and Resilience Facility for the 2021-2027 period. How much is the investment? The funding of the NextGenerationEU through the Recovery and Resilience Facility is €338.0 billion in grants. What can financing be used for? The funds under the Recovery and Resilience Facility (RRF) are being distributed according to national recovery and resilience plans prepared by each Member State, in cooperation with the European Commission, and in line with an agreed allocation key. Objectives and project eligibility criteria for the RRF are indicated in each National Recovery and Resilience Plan, but, in general terms, are similar to the general EU policy’s objectives. All types of projects that minimize the carbon footprint, such as renewable energy buildings and energy production facilities, are eligible. Other interesting aspects? For specific information about how the recovery plans have been deployed in each EU country the report on the impact of the recovery plans on the social housing and affordable housing sector done by Housing Europe can be consulted at the following link: https://www.housingeurope.eu/resource-1635/impact-of-the-recovery-plans-on-the-social-and-affordable-housing-sector. Link(s) https://ec.europa.eu/info/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.htmlOrganized Multi-ownership - Service Infrastructure - 1m-10m - Europe Example 1 Financing instrument Energy performance contracting (EPC) Who provides the financing and through which entity? Energy Performance Contracting (EPC) is an arrangement in which an Energy Service Company (ESCO) enters into an integrated contract with the end user and a financing institution to design and implement EE measures with a guaranteed level of performance. Savings can be used to repay upfront investment costs. Under an EPC arrangement, the ESCO uses the stream of income from the cost savings or energy produced, to repay the costs of the project, including the costs of the investment. Essentially the ESCO will not receive its payment unless the project delivers as expected. How much is the investment? When promoters are looking for ESCO financing, they have to keep in mind that not all projects fit the investing strategy of all ESCOs. Some organisations could be looking for projects with short payback periods like HVAC component replacements and automaton or LED lighting installation, while others could be looking for more long-term payback, like for works related to deep renovations. What can financing be used for? HVAC, PVs and LED lightning. Other interesting aspects? ESCO market in Europe focuses on public, commercial buildings and industry. There are very few examples of ESCO-type approaches in the residential sector. https://ec.europa.eu/info/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://aiguasol.coop/wp-content/uploads/2018/12/Residential_Retrofits.pdfExample 2 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Private residential owners could access Cohesion Funding, through grants provided by public authorities and, eventually, to financing, if there is a FI supporting such investment. . It is up to national entities (the Managing authorities) to decide the amount of cohesion funds to support building renovations, either as grants or to develop new FIs (Financial Instruments) with the same purpose. How much is the investment? In the current programming period 2021-2027, EU funds allocated to the Cohesion Policy amount to €392 billion. The Cohesion Policy Funds support, through its investments five policy objectives (POs). The Cohesion Fund supports PO2 (PO2: a Greener, carbon-free Europe). Social and affordable housing renovations are aligned with PO4, as it is a specific objective of the European Pillar of Social rights. What can financing be used for? Green investments in building renovations, affordable buildings or not, are supported by PO2. The different funds are the following: - The European Regional Development Fund (ERDF) will support investments in all 5 policy objectives, but PO1 and PO2 are the main priorities. - The European Social Fund Plus (ESF+) main priority is PO4. - The Cohesion Fund (CF) supports policy objectives PO2 and PO3. - The Just Transition Fund (JTF) provides support under dedicated specific objectives (art. 8 of JTF regulation, essentially PO2). Other interesting aspects? National entities (managing authorities) are responsible to decide the amount of Cohesion Funds to support building renovations through grants. Link(s) https://www.fi-compass.eu/funds/erdfExample 3 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? JESSICA stands for Joint European Support for Sustainable Investment in City Areas. This initiative is being developed by the EC and the EIB, in collaboration with the Council of Europe Development Bank (CEB). Member States are being given the option of using some of their EU cohesion funding, to make repayable investments in projects forming part of an integrated plan for sustainable urban development. What can financing be used for? Supported energy efficiency improvements in buildings. How much is the investment? It depends on the agreement between the different parties and the budget allocated to the country. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds (UDFs) and, if required, Holding Funds. Therefore, UDFs are specific Fis using cohesion funding. The use of UDFs allows for the recycling of funds, as the returns generated from successful projects are reinvested into new initiatives, creating a sustainable financing mechanism for urban development. Link(s) https://www.eib.org/en/publications/jessicaOrganized Multi-ownership - Multi-residential building - 1m-10m - Europe Financing instrument Green mortgage Who provides the financing and through which entity? Green mortgages can only be offered directly by financial institutions. Energy Efficiency Mortgages (EEM) offer a big opportunity to unlock financing for renovation from the private sector as they bring mortgage banks and traditional lending institutions into the green building market. EEM loans are a great financial mechanism when the project promoter is not the owner of the building(s) and the perceived creditworthiness of the project promoter is lower than the property owners. For example, EEM can play a decisive role in projects where promoters are citizens or community organisations with limited financial capabilities. What can financing be used for? EEM (also known as green mortgages) are loans intended to finance the purchase, construction, or renovation of buildings where energy performance meets a high energy efficiency certificate or where planned works will significantly reduce the energy consumption of the building. Other interesting aspects? Since the definition of a green mortgage is large, as different lenders are offering consumers different options, the Energy-Efficiency Mortgage Institute (EEMI) works to standardise and categorise those loans. They created the EEM Label (EEML) to help consumers, lenders and investors identify EEM in lending institutions' portfolios. The label guarantees the implementation of market and legislative best practices at European and international levels. Link(s) https://cordis.europa.eu/project/id/746205Example 4 Financing instrument Loans Who provides the financing and through which entity? To address the limited access to adequate and affordable financing for energy efficiency investments, the European Investment Bank (EIB) and the European Commission (LIFE programme) have jointly developed the Private Finance for Energy Efficiency (PF4EE) instrument. PF4EE operates through private and public sector partner banks that use the instrument to offer preferential energy efficiency financing in their national markets. Each PF4EE partner bank benefits from the instrument’s two key components – the Risk Sharing Facility and the Expert Support Facility – which may be combined with an EIB loan. What can financing be used for? All investment costs incurred in order to generate energy savings (or to produce energy in case of small renewables) are eligible for financing through a PF4EE loan. Energy efficiency in existing buildings and related infrastructures, such as district heating/cooling networks are eligible for the facility, among other EE investments. Access to the funding is through partner banks that got the support of the facility. See the list of partner banks at https://pf4ee.eib.org/partner-banks. How much is the investment? The projects shall be located in the PF4EE participating countries and have a capital cost below EUR 10 million. The loan is provided at a competitive rate, and with a maximum maturity of 25 years to finance up to 75% of the capital costs of eligible investments. Normally loans are less than 5 million. Link(s) https://pf4ee.eib.org/Example 2 Financing instrument Loans Who provides the financing and through which entity? To address the limited access to adequate and affordable financing for energy efficiency investments, the European Investment Bank (EIB) and the European Commission (LIFE programme) have jointly developed the Private Finance for Energy Efficiency (PF4EE) instrument. PF4EE operates through private and public sector partner banks that use the instrument to offer preferential energy efficiency financing in their national markets. Each PF4EE partner bank benefits from the instrument’s two key components – the Risk Sharing Facility and the Expert Support Facility – which may be combined with an EIB loan. What can financing be used for? All investment costs incurred in order to generate energy savings (or to produce energy in case of small renewables) are eligible for financing through a PF4EE loan. Energy efficiency in existing buildings and related infrastructures, such as district heating/cooling networks are eligible for the facility, among other EE investments. Access to the funding is through partner banks that got the support of the facility. See the list of partner banks at https://pf4ee.eib.org/partner-banks. How much is the investment? The projects shall be located in the PF4EE participating countries and have a capital cost below EUR 10 million. The loan is provided at a competitive rate, and with a maximum maturity of 25 years to finance up to 75% of the capital costs of eligible investments. Normally loans are less than 5 million. Link(s) https://pf4ee.eib.org/Example 2 Financing instrument Community Financing Who provides the financing and through which entity? Community financing, refers to financial initiatives and mechanisms that involve the collective contributions of a community to fund projects or enterprises. It often entails individuals or local entities pooling resources to support initiatives that benefit the community as a whole. In community financing, usually, a local community uses a cooperative structure. What can financing be used for? To fund renewable energy projects that could be used to fund energy renovations. Community financing is a great opportunity for social cohesion and has a low cost of financing since participants are willing to provide funds at a lower cost. However, disadvantages include the limited number of projects completed and its limited capacity to reach out to a large number of investors. In community energy projects, the investors usually live in the area where the investment takes place. The social network created out of this proximity makes the aggregation of participants easier. Link(s) https://thinklandscape.globallandscapesforum.org/60139/what-is-community-financing/Example 3 Financing instrument Crowdfunding Who provides the financing and through which entity? Crowdfunding, is a financing method that involves raising small amounts of money from a large number of people, typically through online platforms or websites. Crowdfunding methods often follow various approaches based on the project's intended objectives. In equity crowdfunding, for instance, contributors—often investors—receive a stake or equity in the project or business in exchange for their financial support. In this arrangement, backers become shareholders and hold a potential financial interest in the success of the venture. Conversely, crowdfunding can take other alternative approaches, such as providing small investors with discounts on project services or offering contributors a way to align their interests with ESG criteria or personal concerns. What can financing be used for? To fund renewable energy projects that could be used to fund energy renovations. Other interesting aspects? One of the biggest hurdles faced by crowdfunding platforms is their reach-out capacity and the amount of investment that can be obtained through them. Also, in the past, it was difficult for platforms to offer their services across borders. This has in the past resulted in high compliance and operational costs, which prevented crowdfunding platforms from efficiently scaling. In 2020, the EU passed the Regulation on European Crowdfunding Service Providers (ECSP) for businesses aiming at resolving this issue. The regulation lays down uniform rules across the EU for crowdfunding services. Investors will benefit from mandatory disclosures from project owners and platform managers regarding governance and risk management. Link(s) https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/financial-markets/crowdfunding_en https://www.respira.coop/Organized Multi-ownership - Multi-residential building - Less than 5m - France Financing instrument Combination of different financing instruments Who provides the financing and through which entity? TEPCV is a law (Loi relative à la transition énergétique pour la croissance verte, Law on the energy transition for green growth) in 2015 to facilitate the financing of energy efficiency improvements in existing housing through the guarantee fund for energy renovation (FGRE). It enables banks to benefit from a guarantee when granted. Concerning subsidies for the renovation of private housing, they are regulated and managed by the Anah (national agency for housing), which is a public entity under the supervision of the ministries of Territorial Cohesion and Relations with local authorities, Ecological Transition and the Economy, Finance and Recovery. The Anah deploys several financing mechanisms for low-income owners to trigger large energy renovation for individual houses and multi-apartment dwellings through MaPrimeRénov, either for single renovation acts or for global renovations. How much is the investment? The aids depend on the household’s incomes which are divided into four profiles: very-low-income, low-income, intermediary-income and high-income households. What can financing be used for? The Anah encourages renovation and rehabilitation of housing by granting financial aid to low-income owners and to fragile and struggling condominiums. Its mission is to improve the state of the existing private housing stock and to fight against social and territorial fractures. Other interesting aspects? There is a list of private banks that offer competitive financing, such as a zero-interest loan (called Eco-PTZ). Link(s) https://www.anah.fr/qui-sommes-nous/ https://www.anil.org/documentation-experte/analyses-juridiques-jurisprudence/analyses-juridiques/analyses-juridiques-2016/fonds-de-garantie-pour-la-renovation-energetique-fgre/#:~:text=Le%20fonds%20de%20garantie%20pour%20la%20r%C3%A9novation%20%C3%A9nerg%C3%A9tique%20peut%20garantir,%C3%A0%20charge%20de%20leurs%20travauxExample 5 Financing instrument On tax/on-bill Who provided the financing and through which entity? EnergieSprong is a pioneering program that originated in the Netherlands in 2010, introducing and retrofitting houses to meet high energy efficiency standards. This initiative has since expanded its footprint to countries like the United Kingdom, the United States, France, Germany, Italy and Canada. What can financing be used for? The program involves attaching a panel shell to the exterior of existing buildings to significantly enhance their thermal efficiency. Launched by the Dutch government, EnergieSprong focuses on retrofitting existing structures to achieve zero-energy status. Through collaborations with social housing companies and contractors, the program successfully retrofitted 111,000 houses in the Netherlands. Following the retrofit, these homes attain net-zero energy, generating the total energy they need for their own requirements. Other interesting aspects? An Energiesprong renovation (or new built) is financed in two ways: through energy cost savings from tenants and by reduced maintenance and repairs costs for housing associations. Both are part of the business case. The objective is that tenants have the same monthly expenses – they pay the housing association an energy service plan instead of the bill of the energy supplier. The housing association can now use this new income stream to pay for the renovation. Link(s) https://energiesprong.org/Organized Multi-ownership - Service Infrastructure - 1m-10m - France Financing instrument Community Financing Who provides the financing and through which entity? Énergie Partagée supports and finances citizen projects for the production of 100% renewable energy in France. It focuses on community financing, but the cooperative is open to any qualified investors. It gathers equity from citizens in order to invest in a community-owned energy project. What can financing be used for? The production of 100% renewable energy. Other interesting aspects? The Energie Partagée team is divided between an association and a cooperative and has five areas of activity. The association centralizes the functions of animation and mobilization at the national and regional levels. The cooperative develops the projects itself. Today more than 300 projects have been completed. Link(s) https://energie-partagee.org/decouvrir/Organized Multi-ownership - Multi-residential building - Less than 5m - Lithuania Example 1 Financing instrument Loans Who provides the financing and through which entity? In Lithuania, the public financing of some EU funds has been gradually replaced by private financing. The local capacity to manage funds has increased, as the most recent funds are managed by the national agency VIPA. The main value added of these funds is to provide homeowners with very competitive funding to renovate their houses. How much is the investment? From EUR 80 million of private funding out of €227 million in the Jessica I to €400 million of private funding out of €500 million for the leveraged fund. What can financing be used for? Renovate the multi-apartment residential buildings, there are also financial incentives for the energy renovation of individual houses, such as replacing inefficient boilers with RES technologies or connecting them to the district heating system. Other interesting aspects? Private banks are more confident to provide this type of financing and there are private initiatives to fund them, without public financing support. From the point of view of the apartment owners, the objective is that the savings on energy bills are higher than the annual payment of the loan. Link(s) https://www.vipa.ltOrganized Multi-ownership - Service Infrastructure - Less than 5m - Lithuania Financing instrument Loans Who provides the financing and through which entity? In Lithuania, the public financing of some EU funds has been gradually replaced by private financing. The local capacity to manage funds has increased, as the most recent funds are managed by the national agency VIPA. The main value added of these funds is to provide homeowners with very competitive funding to renovate their houses. How much is the investment? From €80 million of private funding out of €227 million in the Jessica I to €400 million of private funding out of €500 million for the leveraged fund. What can financing be used for? To renovate the multi-apartment residential buildings, there are also financial incentives for the energy renovation of individual houses, such as replacing inefficient boilers with RES technologies or connecting them to the district heating system. Other interesting aspects? Private banks are more confident to provide this type of financing and there are private initiatives to fund them, without public financing support. From the point of view of the apartment owners, the objective is that the savings on energy bills are higher than the annual payment of the loan. Link(s) https://www.vipa.ltExample 2 Financing instrument Grants Who provided the financing and through which entity? The policy to support financially the energy renovation of apartment buildings starts with a pilot that began in 1996, which was fully funded by public money (Cohesion Fund). This pilot was followed by the adoption in 2004 of the Housing Strategy for the Multi-Apartment Buildings Renovation Programme. On the financial side, this strategy combined commercial loans secured by a state-owned insurance agency with up to 50% in state grants (funded by the national budget). The programme, based on a generous grant component, was stopped in 2008, as it run out of public funding. How much was the investment? Grant components included a 100% grant for the preparation of the renovation documents and a 15% interest subsidy via debt write-off if energy savings amounted to at least 20%, as well as an extra 25% write-off if energy savings reached a minimum of 40%. The scheme also included a 100% reimbursement for all renovations in apartments owned by low-income families. Link(s) https://www.ikem.de/wp-content/uploads/2021/05/Brief.4_Lessons-learned-from-financing-energy-efficiency-in-multi-residential-buildings-in-Lithuania.pdf https://unece.org/DAM/env/documents/2015/AIR/WGSR/Lithuania_2015.pdfExample 3 Financing instrument Loans Who provided the financing and through which entity? With its accession to the EU in 2005, Lithuania gain access to cohesion funding from the EIB. These funds allowed resuming the programme of building renovation. The Jessica fund (Jessica I) in 2009 using cohesion funding was followed by the Jessica II in 2015, and later by other funds with the same purpose. The Jessica funds are debt funds. They grant loans to selected banks, in order that they can provide long-term finance to building owners. The banks may propose to share risks. In addition, as the different Jessica funds are revolving, the funds can be reinvested in new loans; thus ensuring the sustainability of the financing. Link(s) https://www.ikem.de/wp-content/uploads/2021/05/Brief.4_Lessons-learned-from-financing-energy-efficiency-in-multi-residential-buildings-in-Lithuania.pdf https://unece.org/DAM/env/documents/2015/AIR/WGSR/Lithuania_2015.pdfExample 4 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Guarantees for building renovation: EIB and Šiaulių Bankas continue financing loans for energy efficiency increase in multi-apartment houses in Lithuania. Siauliu Bankas are granting loans for the modernization of multi-apartment buildings through approved instruments on a legal basis. The loan term is 20 years. How much is the investment? This project was launched in 2016 and, since the start of the Multi-Apartment Building Modernization Program, more than 2,500 multi-apartment buildings or 70,000 apartments have been renovated, with a total investment during this period of €600 million. The EIB provided a €30 million guarantee from the European Regional Development Fund (ERDF) for a portfolio of €150 million in loans granted by Siauliu Bankas to homeowners for the modernization of their properties. This public-private partnership has made it possible to maximize the use of EU funds for the renovation program. What can financing be used for? In 2019, the EIB and Siauliu Bankas signed a new guarantee agreement to continue and renew their financing for the energy-efficiency renovation of Lithuanian multi-apartment buildings. Other interesting aspects? The financing situation in Lithuania has shifted from using financial intermediaries as agents to disburse ERDF and national funds, to an ERDF-backed guarantee to banks, which are using their funds to provide Modernization Loans. This last step has greatly improved the leverage of this financing, maximizing the number of households that can receive cheaper loans. Link(s) https://www.eib.org/en/press/all/2019-001-new-financing-for-energy-efficiency-loans-in-lithuania-with-siauliu-bankasOrganized Multi-ownership - Service Infrastructure - 1m-10m - Portugal Financing instrument Crowdfunding Who provides the financing and through which entity? The platform GOPARITY in Portugal is a great example of a successful crowdfunding scheme. The promoter of the project is an organisation called Cleanwatts. The mission of this project is to fight energy poverty by creating renewable energy communities that produce their electricity and promote energy-efficiency practices. Members will get a price 25% lower than the price of the national grid during sunny hours. What can financing be used for? In 2019, an energy production project in the city of Castelões raised €67k to finance the installation of PV energy production. Other interesting aspects? The funds raised through this campaign have been used to finance a project in a small town in the North of Portugal. A total of 86,2 kWp (kilowatt ‘peak’) has been installed. This community is one of the three plants to be installed in the parish of Calvão. Link(s) https://goparity.com">https://goparity.com">https://goparity.comOrganized Multi-ownership - Multi-residential building - Less than 5m - Portugal Example 1 Financing instrument Loans Who provides the financing and through which entity? Unión de Créditos Inmobiliarios SA (UCI) BUILDING RENOVATION MBIL. The EIB is supporting the UCI with a Multi-Beneficiary Intermediated Loan (MBIL) to finance building renovations undertaken by individuals and homeowner associations in Spain and Portugal. UCI acts as an intermediary financial institution and is one of the most active players in green financing in the Spanish market. How much is the investment The project was signed in 2021, and the approximate amount proposed by the EIB was €50 million. What can financing be used for? The project aims to improve building renovation performance by providing access to finance for homeowner associations and individuals, thereby promoting investment in energy efficiency. Its primary focus is on financing deep renovations led by homeowner associations in Spain and, to a lesser extent, in Portugal. Other interesting aspects? By entering the high-quality segment of building renovation, the EIB will reduce funding expenses and encourage additional investors to participate. This will increase interest in financing home renovation projects carried out by homeowner associations. Link(s) https://www.eib.org/en/projects/pipelines/all/20210137Organized Multi-ownership - Multi-residential building - Less than 5m - Spain Example 1 Financing instrument Loans Who provides the financing and through which entity? Unión de Créditos Inmobiliarios SA (UCI) BUILDING RENOVATION MBIL. The EIB is supporting the UCI with a Multi-Beneficiary Intermediated Loan (MBIL) to finance building renovations undertaken by individuals and homeowner associations in Spain and Portugal. UCI acts as an intermediary financial institution and is one of the most active players in green financing in the Spanish market. How much is the investment? The project was signed in 2021, and the approximate amount proposed by the EIB was €50 million. What can financing be used for? The project aims to improve building renovation performance by providing access to finance for homeowner associations and individuals, thereby promoting investment in energy efficiency. Its primary focus is on financing deep renovations led by homeowner associations in Spain and, to a lesser extent, in Portugal. Other interesting aspects? By entering the high-quality segment of building renovation, the EIB will reduce funding expenses and encourage additional investors to participate. This will increase interest in financing home renovation projects carried out by homeowner associations. Link(s) https://www.eib.org/en/projects/pipelines/all/20210137Organized Multi-ownership - Multi-residential building - Less than 1m - Spain Example 1 Financing instrument Crowdfunding Who provided the financing and through which entity? iHelp is a solidarity crowdfunding platform that has included social housing renovation projects in the past and remains open to this type of initiative. The iHelp platform, managed by the foundation of the same name, boasts over 17 years of experience as facilitators of donations for NGOs. They base their method, as they claim, on 'effective altruism,' ensuring a secure and transparent process. iHelp was launched in 2016, revamping Cibersolidaridad.org, a charitable project that has been in operation since 2001 and stands as the first solidarity crowdfunding platform to operate in Spain. What can financing be used for? Among all the sectors it provides assistance to, the 'Environment and Ecology' stands out as the suitable section to promote any project involving the energy renovation of social housing or for individuals with low resources or in vulnerable situations Link(s) https://www.ihelp.org.esExample 2 Financing instrument Grants Who provides the financing and through which entity? Energy Diversification and Saving (IDAE), has developed the PREE Program endowed with a package of subsidies aimed at financing the renovation of the housing stock, which is managed in collaboration with the regional governments. What can financing be used for? The PREE Program subsidizes renovation projects ranging from changes in the thermal envelope of the building, to the replacement of thermal installations based on fossil fuels by thermal generation based on renewable sources, with the objective of a minimum reduction of 30% of primary energy consumption from non-renewable sources. How much is the investment? This Program is regulated by Law RD 477/2021, which gives direct concession to the autonomous communities to manage these incentive programs, which will give them access to EUR 660 million, which can be increased to €1,320 million. Other interesting aspects? The regulatory bases of this program establish that these aids are not compatible with other aid programs that come from European funds. Link(s) https://www.idae.es/ayudas-y-financiacion/para-la-rehabilitacion-de-edificios/convocatorias-cerradas/programa-preeOrganized Multi-ownership - Service Infrastructure - Less than 1m - Spain Financing instrument Grants Who provides the financing and through which entity? Energy Diversification and Saving (IDAE), has developed the PREE Program endowed with a package of subsidies aimed at financing the renovation of the housing stock, which is managed in collaboration with the regional governments. What can financing be used for? This incentive Program aims to promote self-consumption and distributed generation, demand management, storage and flexibility, the promotion of local energy communities and the incorporation of renewable energies, with the objective by 2030 to have 42% of all energy used coming from renewable energies, with 74% of electrical energy coming renewable energy. How much is the investment? This Program is regulated by Law RD 477/2021, which gives direct concession to the autonomous communities to manage these incentive programs, which will give them access to EUR 660 million, which can be increased to €1,320 million. Other interesting aspects? The regulatory bases of this program establish that these aids are not compatible with other aid programs that come from European funds. Link(s) https://www.idae.es/ayudas-y-financiacion/para-la-rehabilitacion-de-edificios/convocatorias-cerradas/programa-preeExample 2 Financing instrument Grants Who provides the financing and through which entity? In the context of the Next Generation funds, the Spanish government has promoted a stimulus plan for the renovation of the housing stock. To this end, Law RD 19/2021 establishes a direct collaboration with the Spanish autonomous communities, which must promote stimulus programs at the regional level, according to the bases of the Law RD, and with the transfer of funds for such plans directly from the ministry. How much is the investment? Endowed with more than €1,151 million, RD 853/2021 defines 6 dedicated stimulus programs for the housing stock, 5 of which stimulate building renovation. Among the stimulus programs, there has been put a special emphasis on neighbourhood reactivation programs that allow them to be provided with sufficient funds to stimulate their retrofitting plans. As part of these programs “scheduled residential renovation settings” (Entorno Residencial de Rehabilitación Programada – ERRP), which can be subject to social housing, have been defined. How much is the investment? This program has an initial budget of 30% of the available budget for renovation programs, and its objective is clearly to improve housing in environments defined by their vulnerability, with aid that can reach up to €21,400 per home. Link(s) https://www.boe.es/buscar/act.php?id=BOE-A-2021-16230Example 3 Financing instrument Tax incentives Who provided the financing and through which entity? The Government of Spain has provided tax deductions in the IRPF for energy-efficiency housing renovation works that include two fundamental aspects: 1. The aid granted through different public aid programs, including those at the national and regional levels, will not be integrated into the income tax base. 2. The rehabilitation actions in homes that entail an improvement in the energy efficiency of the same, will have a different taxes deduction according to the actions implemented. How much is the investment and what can financing be used for? A deduction of 20% for actions that reduce at least 7% the demand for heating and cooling of habitual residence, up to a maximum of €5,000 per home; a deduction of 40% for actions that reduce by 30% the consumption of non-renewable primary energy in homes, or that reach the energy rating of the letters "A" or "B", up to a maximum of €7,500 per home and a deduction of 60% for actions that reduce by 30% the consumption of non-renewable primary energy in residential buildings, or that reach in their energy classification the letters "A" or "B", up to a ceiling of €15,000 per home. Link(s) https://www.idae.es/noticias/beneficios-fiscales-en-el-irpf-para-la-implantacion-de-energias-renovables-termicasOrganized Multi-ownership - Service Infrastructure - Less than 5m - Spain Example 1 Financing instrument Tax incentives Who provided the financing and through which entity? The Government of Spain has provided tax deductions in the IRPF for energy-efficiency housing renovation works that include two fundamental aspects: 1. The aid granted through different public aid programs, including those at the national and regional levels, will not be integrated into the income tax base. 2. The rehabilitation actions in homes that entail an improvement in the energy efficiency of the same, will have a different taxes deduction according to the actions implemented. How much is the investment and what can financing be used for? A deduction of 20% for actions that reduce at least 7% the demand for heating and cooling of habitual residence, up to a maximum of €5,000 per home; a deduction of 40% for actions that reduce by 30% the consumption of non-renewable primary energy in homes, or that reach the energy rating of the letters "A" or "B", up to a maximum of €7,500 per home and a deduction of 60% for actions that reduce by 30% the consumption of non-renewable primary energy in residential buildings, or that reach in their energy classification the letters "A" or "B", up to a ceiling of €15,000 per home. Link(s) https://www.idae.es/noticias/beneficios-fiscales-en-el-irpf-para-la-implantacion-de-energias-renovables-termicasExample 4 Financing instrument Combination of different financing instruments Who provided the financing and through which entity? The Official Credit Institute (ICO), through direct collaboration with the Ministry of Transport, Mobility and Urban Agenda (MITMA), has developed the 'Line of Guarantees Residential Building Rehabilitation' with the aim of collaborating in the promotion of housing rehabilitation. How much is the investment? It will enable a new line of guarantees for an amount of up to €1,100 million to partially cover the risk of loans for actions of residential buildings’ renovations. Specifically, the state will guarantee up to 50% of the loans offered by financial institutions for these actions, allowing to mobilize of a total of €2,200 million. This line of credit will not represent any additional cost for citizens or for the financial institution and will support to cover the risk of operations carried out with financial institutions, with a maximum of up to € 30,000 guarantee per loan per home, and with a repayment term of up to 15 years. What can financing be used for? Residential building and housing rehabilitation. Link(s) https://www.ico.es/newsletter-ico-octubre-2022/mitma-nueva-línea-de-avales-de-1.100-millones-para-impulsar-la-rehabilitación-de-edificios-residencialesExample 3 Financing instrument Combination of different financing instruments Who provided the financing and through which entity? The Solidarity Fund for Energy Rehabilitation by the Naturgy Foundation does not provide any specific financing contribution, but it is focused on assisting in the rehabilitation of social housing and vulnerable family homes. The Fund is constituted with the contributions made by the Naturgy Foundation. In addition, monetary or in-kind contributions can be made by collaborating entities and companies. What can financing be used for? Founded in 2018, it already has more than 3,000 express rehabilitations, related to wall and ceiling insulation, damp issues, carpentry, boiler repair or replacement, and appliance upgrades, as well as electrical installation repairs, among others. Other interesting aspects? It is included as an example of good practice in the National Strategy against Energy Poverty 2019-2024. It is aimed at homes of vulnerable families owned or managed by public administrations and third-sector entities. Link(s) https://www.fundacionnaturgy.org/accion-social/plan-vulnerabilidad-energetica/fondo-solidaridad-rehabilitacion-energetica/Example 4 Financing instrument Project Finance Who provides the financing and through which entity? MES Barcelona (Barcelona Sustainable Energy Mechanism) program, conceived and designed by the 2030 Agenda Office of the Barcelona City Council, exemplifies the determination of public administrations to join the private sector in the search for solutions to these energy challenges. MES Barcelona is a public-private partnership project that uses the tool of co-investment by public and private actors, with the specific objective of facilitating the energy transition and long-term sustainable energy savings by promoting self-consumption of electricity, in households as well as in companies and public facilities, through the use of photovoltaic collectors that harness solar energy. At present, the program is at an early stage, in which there are still areas to be defined and room for learning and improvement by all of the actors involved. What can financing be used for? An essential feature of MES Barcelona is that the returns it generates must be not only financial, but above all environmental and social. The project includes various schemes for co-investment by private and/or public entities, as well as other forms of investment. The most prominent example of a co-investment scheme is the creation of an SPV (special purpose vehicle) in which the city of Barcelona will be able to acquire a 30% stake. By February 2023, the City Council had reached agreements with five approved investors to set up nine joint SPVs: - Six SPVs are for public, industrial and service buildings (€57.52 million of investment). - Three SPVs are for the residential market (€18.10 million of investment). Together, these SPVs would represent an installed capacity of 87,23 MWp, for which the City Council will only have to invest €11.07 million (22,15% of the planned investment of €50 million). The total investment will be €7.56 million, provided by the City Council (14,65%), approved investors (34,48%) and through SPV leverage financing (50,8%). In terms of ESG impact indicators, these projects would deliver the following results: - Global warming: reduction of 28,618 tons per year of CO₂. - Health: reduction of 70,351 kg of PM10 per year. - Social benefit: €5,730,410 per year in avoided social costs. - Economy: 349 jobs created. The number of requests for information about the project (leads) has already reached 1,500 for buildings, the vast majority of which are residential. Information has been requested from 750 leads, and concrete proposals have been presented to over 100. Link(s) https://media.iese.edu/research/pdfs/ST-0645-EExample 2 Financing instrument Grants Who provides the financing and through which entity? In the context of the Next Generation funds, the Spanish government has promoted a stimulus plan for the renovation of the housing stock. To this end, Law RD 19/2021 establishes a direct collaboration with the Spanish autonomous communities, which must promote stimulus programs at the regional level, according to the bases of the Law RD, and with the transfer of funds for such plans directly from the ministry. How much is the investment? Endowed with more than €1,151 million, RD 853/2021 defines 6 dedicated stimulus programs for the housing stock, 5 of which stimulate building renovation. Among the stimulus programs, there has been put a special emphasis on neighbourhood reactivation programs that allow them to be provided with sufficient funds to stimulate their retrofitting plans. As part of these programs “scheduled residential renovation settings” (Entorno Residencial de Rehabilitación Programada – ERRP), which can be subject to social housing, have been defined. How much is the investment? This program has an initial budget of 30% of the available budget for renovation programs, and its objective is clearly to improve housing in environments defined by their vulnerability, with aid that can reach up to €21,400 per home. Link(s) https://www.boe.es/buscar/act.php?id=BOE-A-2021-16230Example 5 Financing instrument Combination of different financing instruments Who provided the financing and through which entity? The Securitization Fund RMBS Green Prado XI, covers a broader spectrum and is oriented towards energy transition and social impact. Through this collaboration, EIB, ICO, and UCI join forces to promote the renovation and construction of residential homes with sustainable criteria in Spain and Portugal. These green investments align with UCI's strategy of providing sustainable financing for individuals and property communities. How much is the investment and what can financing be used for? In the first joint transaction among the three parties, structured through the securitization of a portfolio of residential mortgages originated in Spain amounting to €490 million, the EIB Group and ICO acquire bonds with the aim of facilitating green investments. The funds generated will finance new green and sustainable loans for individuals and property communities undertaking investments in building renovations. The project will contribute to the mitigation of climate change and align with the European Commission's Renovation Wave strategy and ESG standards and goals. Link(s) https://www.eib.org/de/press/all/2023-165-eib-group-and-ico-invest-in-uci-securitisation-fund-for-renovating-and-building-residential-homes-using-sustainable-criteria-in-spain-and-portugal?lang=esExample 2 Financing instrument Combination of different financing instruments Who provided the financing and through which entity? The Securitization Fund RMBS Green Prado XI, covers a broader spectrum and is oriented towards energy transition and social impact. Through this collaboration, EIB, ICO, and UCI join forces to promote the renovation and construction of residential homes with sustainable criteria in Spain and Portugal. These green investments align with UCI's strategy of providing sustainable financing for individuals and property communities. How much is the investment and what can financing be used for? In the first joint transaction among the three parties, structured through the securitization of a portfolio of residential mortgages originated in Spain amounting to €490 million, the EIB Group and ICO acquire bonds with the aim of facilitating green investments. The funds generated will finance new green and sustainable loans for individuals and property communities undertaking investments in building renovations. The project will contribute to the mitigation of climate change and align with the European Commission's Renovation Wave strategy and ESG standards and goals. Link(s) https://www.eib.org/de/press/all/2023-165-eib-group-and-ico-invest-in-uci-securitisation-fund-for-renovating-and-building-residential-homes-using-sustainable-criteria-in-spain-and-portugal?lang=esOrganized Multi-ownership - Multi-residential building - Less than 5 - The Netherlands Example 1 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? In 2014, BNG Bank developed an ESG issuance framework in cooperation with PON-Telos. Under this framework, the most sustainable municipalities and social housing associations were selected. The loans provided to these “best-in-class” performing core clients were consecutively funded with proceeds from the ESG bonds which the bank issued. This framework was successfully deployed until 2020. The launch of the UN SDGs, as well as the launch of BNG’s Road to Impact strategy- provided a logical backdrop to modernize the framework in 2021. As a result, the BNG Sustainable Finance Framework was launched in that year. It is under this ESG framework that BNG Bank has issued ESG bonds for Dutch municipalities and social housing associations since 2021. How much is the investment and what can financing be used for? For energy renovation of social housing. The Sustainable Finance Framework follows the four key pillars of the ICMA Green Bond Principles (GBP) and Social Bond Principles (SBP), and of the LMA Green Loan Principles (GLP): Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting. Given this structure, the framework is divided in two subframeworks that each focus on a different client group in terms of use of proceeds: - Sub-framework I for loans to Dutch municipalities. - Sub-framework II for loans to Dutch social housing associations. To access loans and financial products from BNG Bank through ESG Bonds, you must be either a municipality or a social housing association in the Netherlands. Link(s) https://www.bngbank.com/Example 2 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Social housing organisations can benefit from a sectoral guarantee fund called the Guarantee Fund for Social Housing (WSW), which is a private organisation created by the social housing associations themselves, in order to facilitate their financing. In addition, the WSW has an agreement with the State, which allows it to access state funds that would cover housing associations' defaults in certain cases. Therefore, the WSW offers a solid structure that allows social landlords to obtain financing on favourable terms. This guarantee facilitates the mobilization of private capital from financial institutions, particularly in terms of loans. How much is the investment and what can financing be used for? For energy renovation of social housing. The conditions for loan guarantees provided by WSW are as follows: - Participant Eligibility: WSW guarantees loans exclusively for housing associations registered as participants. The guarantee is limited to financing social rental housing and Services of General Economic Interest (SGEI). - Backstop Agreements with Municipalities: The participant's municipality, where SGEI registered property is owned, must have a current back-up agreement with WSW. If it's a limited backstop agreement, the loan must adhere to specified limits. - Financial Institution Requirements: Participants are allowed to engage in transactions only with financial institutions that meet the criteria outlined in the Housing Act, article 21c. - Standard Loan Documentation: The loans eligible for guarantees must adhere to 'plain vanilla' principles, emphasizing simplicity, clarity, and transparency. Additionally, approved standard loan documentation must be used. Link(s) https://www.wsw.nl/corporaties/borgingproces/aanvragen-en-verkrijgen-van-borging-na-1-augustusOrganized Multi-ownership - Multi-residential building - Less than 1m - The Netherlands Financing instrument Grants Who provides the financing and through which entity? The Rijksdienst voor Ondernemend RVO, in the Netherlands, offers various grants for different energy renovation actions. Three types of funding were reinforced or created to replace the homeowner’s energy-saving subsidy (SEEH). What can financing be used for? The Sustainable Subsidy Scheme for Owners' Associations (SVVE) (2023 – 2027) can finance insulation or other energy-saving measures, a heat pump, a solar boiler, or a connection to a heat network. For very energy-efficient renovation, a dedicated Very energy-efficient package (ZEP) exists and requires the insulation of the entire existing thermal shell by setting high insulation values. How much is the investment? It is particularly suited for zero-on-the-meter renovations and enables a bonus of €4,000 per apartment. As for the ISDE grant, the funding amount of the SVVE doubles when two or more measures are taken. Other interesting aspects? For mixed VvE (Associations of Owners with a mix of owner-occupiers and owners who rent out the house), the Incentive scheme for natural gas-free rental homes (SAH) applies for renovations that include complete gas removal (for heating, DHW and cooking) within five years. This scheme was created to participate in the Dutch Climate Agreement’s goal of removing all homes from natural gas by 2050. A grant can be obtained for internal housing costs for home modifications and the cost of connecting to a heating network. The grant amount is a maximum of €5000 per home. Link(s) https://www.rvo.nl/subsidies-financiering/svve/verduurzamingsmaatregelen https://www.rvo.nl/subsidies-financiering/sah Example 3 Financing instrument Loans Who provides the financing and through which entity? Owner-occupiers can also obtain a loan with favourable terms for their energy-saving renovation from the National Heat Fund (Nationaal Warmtefonds) through the Energy savings loan. Polestar Bemiddeling was chosen to provide the Energy Saving Loan on behalf of the Heat Fund and take care of the management and administration of the loan. The Heat Fund also finances VvEs in which housing associations own more than 50 percent of the homes enabling mixed property of housing corporations to finance their energy renovations more easily. How much is the investment? Owners associations (VvEs) of at least two apartment rights with a residential function can obtain a VvE Energy savings loan of up to €30,000 per apartment. For a Very Energy-Efficient Package or a Very Energy-Efficient Package + / Zero on the Meter renovation, VvEs can obtain up to respectively €50,000 or €65,000 per home. The loan amount is deposited in a building fund account. The interest and repayment become part of the VvE contribution so that each owner pays as long as they own the apartment. What can financing be used for? This loan can be used to finance all insulation actions, to change the heating system (to heat pumps, combined-heat boiler, connection to a heat network, a high-efficiency boiler, a solar water heater), to install solar panels, an efficient ventilation system, or an energy-monitoring system. It can also finance LED lighting or saving system for lighting and charging stations. Link(s) https://www.warmtefonds.nl/Public institution - Multi-residential building - 1m-10m - Europe Example 1 Financing instrument Combination of different financing instruments Who provides the financing? It is possible to be financial by the cohesion policy funding, especially for a social and affordable housing renovation project. It is recommended to align the project's objective with the objectives of cohesion policy funding to maximize access to the available funding. The different national governments apply to the EC to receive funds from Cohesion Fund. The national government will then have to develop the financial instrument it will use to distribute them to citizens to rehabilitate their houses. National entities (managing authorities) are responsible to decide the amount of Cohesion Funds to support building renovations, either as grants or to develop new FIs with the same purpose. How much is the investment? In the current programming period 2021-2027, EU funds allocated to the Cohesion Policy amount to EUR 392 billion. The Cohesion policy funds support, through its investments (five policy objectives POs). What can financing be used for? Green investments in building renovations, affordable buildings or not. In the case of renovation of social and affordable housing, social housing providers can apply directly for funding or benefit from grants funded by cohesion funding, such as for energy renovations. The different funds are the following: - The European Regional Development Fund (ERDF) will support investments in all 5 policy objectives, but PO1 and PO2 are the main priorities. - The European Social Fund Plus (ESF+) main priority is PO4. - The Cohesion Fund (CF) supports policy objectives PO2 and PO3. - The Just Transition Fund (JTF) provides support under dedicated specific objectives (art. 8 of JTF regulation, essentially PO2). Link(s) https://www.fi-compass.eu/funds/erdf-cf https://ec.europa.eu/regional_policy/funding/accessing-funds_enPublic institution - Multi-residential building - Less than 5m - Europe Example 1 Financing instrument On tax/on-bill Who provided the financing and through which entity? EnergieSprong is a pioneering program that originated in the Netherlands in 2010, introducing and retrofitting houses to meet high energy efficiency standards. This initiative has since expanded its footprint to countries like the United Kingdom, the United States, France, Germany, Italy and Canada. What can financing be used for? The program involves attaching a panel shell to the exterior of existing buildings to significantly enhance their thermal efficiency. Launched by the Dutch government, EnergieSprong focuses on retrofitting existing structures to achieve zero-energy status. Through collaborations with social housing companies and contractors, the program successfully retrofitted 111,000 houses in the Netherlands. Following the retrofit, these homes attain net-zero energy, generating the total energy they need for their own requirements Other interesting aspects? An Energiesprong renovation (or new built) is financed in two ways: through energy cost savings from tenants and by reduced maintenance and repairs costs for housing associations. Both are part of the business case. The objective is that tenants have the same monthly expenses – they pay the housing association an energy service plan instead of the bill of the energy supplier. The housing association can now use this new income stream to pay for the renovation. Link(s) https://energiesprong.org/Public institution - Service infrastructure - 1m-100m - Europe Example 1 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Cohesion Policy 2021-2027 is implemented through various distinct funds, which align with the five objectives of Regional Policy Funding. All these funds are managed by the EU countries themselves, through partnership agreements with the EU Commission. These agreements cover a number of investment programmes, in order to channel the funding to the different regions and policy areas. To get access to CF, a promoter of a building/district renovation project will have to follow the application procedures of the relevant managing authority. Some have an ongoing procedure, others accept applications at certain times only. It is recommended to visit the website of the EC in order to better understand how the funds are accessed: https://ec.europa.eu/regional_policy/funding/accessing-funds_en What can financing be used for? In the case of renovation of social and affordable housing, social housing providers can often apply directly for funding or benefit from grants funded by cohesion funding, such as for energy renovations. The different funds are the following: - The European Regional Development Fund (ERDF) will support investments in all 5 policy objectives, but PO1 and PO2 are the main priorities. - The European Social Fund Plus (ESF+) main priority is PO4. - The Cohesion Fund (CF) supports policy objectives PO2 and PO3. - The Just Transition Fund (JTF) provides support under dedicated specific objectives (art. 8 of JTF regulation, essentially PO2). Other interesting aspects? Organizations that can benefit from regional funding include public bodies, some private sector organizations (especially small businesses), universities, associations, NGOs and voluntary organizations. Foreign firms with a base in the region covered by the relevant operational programme can also apply, provided they meet European public procurement rules. Link(s) https://www.fi-compass.eu/funds/erdf https://ec.europa.eu/regional_policy/funding/accessing-funds_enPublic institution - District level - 1m-100m - Europe Example 1 Financing instrument Combination of different financing instruments Who provides the financing? It is possible to be financial by the cohesion policy funding, especially for a social and affordable housing renovation project. It is recommended to align the project's objective with the objectives of cohesion policy funding to maximize access to the available funding. The different national governments apply to the EC to receive funds from Cohesion Fund. The national government will then have to develop the financial instrument it will use to distribute them to citizens to rehabilitate their houses. National entities (managing authorities) are responsible to decide the amount of Cohesion Funds to support building renovations, either as grants or to develop new FIs with the same purpose. How much is the investment? In the current programming period 2021-2027, EU funds allocated to the Cohesion Policy amount to EUR 392 billion. The Cohesion policy funds support, through its investments (five policy objectives POs). What can financing be used for? Green investments in building renovations, affordable buildings or not. In the case of renovation of social and affordable housing, social housing providers can apply directly for funding or benefit from grants funded by cohesion funding, such as for energy renovations. The different funds are the following: - The European Regional Development Fund (ERDF) will support investments in all 5 policy objectives, but PO1 and PO2 are the main priorities. - The European Social Fund Plus (ESF+) main priority is PO4. - The Cohesion Fund (CF) supports policy objectives PO2 and PO3. - The Just Transition Fund (JTF) provides support under dedicated specific objectives (art. 8 of JTF regulation, essentially PO2). Link(s) https://www.fi-compass.eu/funds/erdf https://ec.europa.eu/regional_policy/funding/accessing-funds_enExample 2 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The NextGenerationEU is a temporary instrument that was set up in 2020 to address the socio-economic impacts of the COVID-19 pandemic on Member States through the Recovery and Resilience Facility for the 2021-2027 period. How much is the investment? The funding of the NextGenerationEU through the Recovery and Resilience Facility is €338.0 billion in grants. What can financing be used for? The funds under the Recovery and Resilience Facility (RRF) are being distributed according to national recovery and resilience plans prepared by each Member State, in cooperation with the European Commission, and in line with an agreed allocation key. Objectives and project eligibility criteria for the RRF are indicated in each National Recovery and Resilience Plan, but, in general terms, are similar to the general EU policy’s objectives. All types of projects that minimize the carbon footprint, such as renewable energy buildings and energy production facilities, are eligible. Other interesting aspects? For specific information about how the recovery plans have been deployed in each EU country the report on the impact of the recovery plans on the social housing and affordable housing sector done by Housing Europe can be consulted at the following link: https://www.housingeurope.eu/resource-1635/impact-of-the-recovery-plans-on-the-social-and-affordable-housing-sector. Link(s) https://commission.europa.eu/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.htmlExample 2 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The NextGenerationEU is a temporary instrument that was set up in 2020 to address the socio-economic impacts of the COVID-19 pandemic on Member States through the Recovery and Resilience Facility for the 2021-2027 period. How much is the investment? The funding of the NextGenerationEU through the Recovery and Resilience Facility is €338.0 billion in grants. What can financing be used for? The funds under the Recovery and Resilience Facility (RRF) are being distributed according to national recovery and resilience plans prepared by each Member State, in cooperation with the European Commission, and in line with an agreed allocation key. Objectives and project eligibility criteria for the RRF are indicated in each National Recovery and Resilience Plan, but, in general terms, are similar to the general EU policy’s objectives. All types of projects that minimize the carbon footprint, such as renewable energy buildings and energy production facilities, are eligible. Other interesting aspects? For specific information about how the recovery plans have been deployed in each EU country the report on the impact of the recovery plans on the social housing and affordable housing sector done by Housing Europe can be consulted at the following link: https://www.housingeurope.eu/resource-1635/impact-of-the-recovery-plans-on-the-social-and-affordable-housing-sector. Link(s) https://ec.europa.eu/info/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.htmlExample 2 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The NextGenerationEU is a temporary instrument that was set up in 2020 to address the socio-economic impacts of the COVID-19 pandemic on Member States through the Recovery and Resilience Facility for the 2021-2027 period. How much is the investment? The funding of the NextGenerationEU through the Recovery and Resilience Facility is €338.0 billion in grants. What can financing be used for? The funds under the Recovery and Resilience Facility (RRF) are being distributed according to national recovery and resilience plans prepared by each Member State, in cooperation with the European Commission, and in line with an agreed allocation key. Objectives and project eligibility criteria for the RRF are indicated in each National Recovery and Resilience Plan, but, in general terms, are similar to the general EU policy’s objectives. All types of projects that minimize the carbon footprint, such as renewable energy buildings and energy production facilities, are eligible. Other interesting aspects? For specific information about how the recovery plans have been deployed in each EU country the report on the impact of the recovery plans on the social housing and affordable housing sector done by Housing Europe can be consulted at the following link: https://www.housingeurope.eu/resource-1635/impact-of-the-recovery-plans-on-the-social-and-affordable-housing-sector. Link(s) https://ec.europa.eu/info/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.htmlPublic institution - District level - 1m-10m - Europe Example 1 Financing instrument Grants Who provides the financing and through which entity? European Local Energy Assistance – ELENA, is a facility that intends to provide technical support for energy efficiency and renewable investments targeting building and innovative urban transport. It provides support in three different fields: Energy efficiency, Sustainable residential and Urban transport mobility. Social and affordable housing renovation is specifically included in the Sustainable Residential group. How much is the investment? The ELENA facility normally supports projects with an investment size above €30 million to be implemented in a three-year time period for the case of residential projects but can be lower for residential buildings. What can financing be used for? The ELENA provides a grant to its beneficiaries that should be used in any of the following topics: i) technical studies or energy audits; ii) tendering procedure preparation; iii) business plan and financial advisory; iv) project bundling; v) legal advice; vi) project management. Link(s) https://www.eib.org/en/products/advisory-services/elena/index.htmExample 3 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The InvestEU Programme is a follow-up of the Investment Plan for Europe. The EIB Group will implement 75% of the InvestEU and the same share of the advisory budget under the InvestEU Advisory Hub. Further to the EIB and EIF, who are the main implementing partners, international financial institutions active in Europe and national promotional banks –such as the CEB – will be able to use a share of the guarantee (25% in total) to support investment and projects schemes. How much is the investment? With the aim of triggering a new wave –more than €372 billion– in investments using an EU budget guarantee. It integrates into a single fund several previous initiatives. What can financing be used for? The same type of financing as for the EIB but can take higher credit risk than normal EIB financing. It aims at supporting EU policy objectives in the period 2021-27: Services infrastructures, social housing and energy renovations of buildings are eligible to InvestEU. Other interesting aspects? The InvestEU Programme includes the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. Link(s) https://investeu.europa.eu/about-investeu_enExample 3 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The InvestEU Programme is a follow-up of the Investment Plan for Europe. The EIB Group will implement 75% of the InvestEU and the same share of the advisory budget under the InvestEU Advisory Hub. Further to the EIB and EIF, who are the main implementing partners, international financial institutions active in Europe and national promotional banks –such as the CEB – will be able to use a share of the guarantee (25% in total) to support investment and projects schemes. How much is the investment? With the aim of triggering a new wave –more than €372 billion– in investments using an EU budget guarantee. It integrates into a single fund several previous initiatives. What can financing be used for? The same type of financing as for the EIB but can take higher credit risk than normal EIB financing. It aims at supporting EU policy objectives in the period 2021-27: Services infrastructures, social housing and energy renovations of buildings are eligible to InvestEU. Other interesting aspects? The InvestEU Programme includes the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. Link(s) https://investeu.europa.eu/about-investeu_enExample 4 Financing instrument Energy performance contracting (EPC) Who provides the financing and through which entity? Energy Performance Contracting (EPC) is an arrangement in which an Energy Service Company (ESCO) enters into an integrated contract with the end user and a financing institution to design and implement EE measures with a guaranteed level of performance. Savings can be used to repay upfront investment costs. Under an EPC arrangement, the ESCO uses the stream of income from the cost savings or energy produced, to repay the costs of the project, including the costs of the investment. Essentially the ESCO will not receive its payment unless the project delivers as expected. How much is the investment? When promoters are looking for ESCO financing, they have to keep in mind that not all projects fit the investing strategy of all ESCOs. Some organisations could be looking for projects with short payback periods like HVAC component replacements and automaton or LED lighting installation, while others could be looking for more long-term payback, like for works related to deep renovations. What can financing be used for? HVAC, PVs and LED lightning. Other interesting aspects? ESCO market in Europe focuses on public, commercial buildings and industry. There are very few examples of ESCO-type approaches in the residential sector. Link(s) https://aiguasol.coop/wp-content/uploads/2018/12/Residential_Retrofits.pdfExample 2 Financing instrument Loans Who provides the financing and through which entity? To address the limited access to adequate and affordable financing for energy efficiency investments, the European Investment Bank (EIB) and the European Commission (LIFE programme) have jointly developed the Private Finance for Energy Efficiency (PF4EE) instrument. PF4EE operates through private and public sector partner banks that use the instrument to offer preferential energy efficiency financing in their national markets. Each PF4EE partner bank benefits from the instrument’s two key components – the Risk Sharing Facility and the Expert Support Facility – which may be combined with an EIB loan. What can financing be used for? When promoters are looking for ESCO financing, they have to keep in mind that not all projects fit the investing strategy of all ESCOs. Some organisations could be looking for projects with short payback periods like HVAC component replacements and automaton or LED lighting installation, while others could be looking for more long-term payback, like for works related to deep renovations. How much is the investment? The projects shall be located in the PF4EE participating countries and have a capital cost below EUR 10 million. The loan is provided at a competitive rate, and with a maximum maturity of 25 years to finance up to 75% of the capital costs of eligible investments. Normally loans are less than 5 million. Link(s) https://pf4ee.eib.org/Public institution - Service infrastructure - Less than 5m - Europe Example 1 Financing instrument Loans Who provides the financing and through which entity? To address the limited access to adequate and affordable financing for energy efficiency investments, the European Investment Bank (EIB) and the European Commission (LIFE programme) have jointly developed the Private Finance for Energy Efficiency (PF4EE) instrument. PF4EE operates through private and public sector partner banks that use the instrument to offer preferential energy efficiency financing in their national markets. Each PF4EE partner bank benefits from the instrument’s two key components – the Risk Sharing Facility and the Expert Support Facility – which may be combined with an EIB loan. What can financing be used for? All investment costs incurred in order to generate energy savings (or to produce energy in case of small renewables) are eligible for financing through a PF4EE loan. Energy efficiency in existing buildings and related infrastructures, such as district heating/cooling networks are eligible for the facility, among other EE investments. Access to the funding is through partner banks that got the support of the facility. See the list of partner banks at https://pf4ee.eib.org/partner-banks. How much is the investment? The projects shall be located in the PF4EE participating countries and have a capital cost below EUR 10 million. The loan is provided at a competitive rate, and with a maximum maturity of 25 years to finance up to 75% of the capital costs of eligible investments. Normally loans are less than 5 million. Link(s) https://pf4ee.eib.org/Public institution - District level - Less than 5m - Europe Example 1 Financing instrument Loans Who provides the financing and through which entity? To address the limited access to adequate and affordable financing for energy efficiency investments, the European Investment Bank (EIB) and the European Commission (LIFE programme) have jointly developed the Private Finance for Energy Efficiency (PF4EE) instrument. PF4EE operates through private and public sector partner banks that use the instrument to offer preferential energy efficiency financing in their national markets. Each PF4EE partner bank benefits from the instrument’s two key components – the Risk Sharing Facility and the Expert Support Facility – which may be combined with an EIB loan. What can financing be used for? All investment costs incurred in order to generate energy savings (or to produce energy in case of small renewables) are eligible for financing through a PF4EE loan. Energy efficiency in existing buildings and related infrastructures, such as district heating/cooling networks are eligible for the facility, among other EE investments. Access to the funding is through partner banks that got the support of the facility. See the list of partner banks at https://pf4ee.eib.org/partner-banks. How much is the investment? The projects shall be located in the PF4EE participating countries and have a capital cost below EUR 10 million. The loan is provided at a competitive rate, and with a maximum maturity of 25 years to finance up to 75% of the capital costs of eligible investments. Normally loans are less than 5 million. Link(s) https://pf4ee.eib.org/Example 4 Financing instrument Bonds Who provides the financing and through which entity? The emission of bonds is a costly process. Promoters should consider if the required resources to issue a bond are available or if funds from existing bonds issued by specific public authorities might be used to finance a specific project. Municipal bonds are another low-risk and low-return option for investors. It’s a way for local government to access financing. Municipal bonds emission has been used by the local government to fund energy efficiency project. Repayment of the bonds is done by the entity issuing the bond. In the case of energy efficiency projects, part or the totality of the repayments may be covered by the savings in energy bills. Local legislative framework limits their usage across local European governments. What can financing be used for? Bonds used to finance energy-efficiency projects can be described as green, social or sustainable if they are aligned with the criteria of the relevant legislation. The taxonomy in the case of the EU. Those bonds are specially designed to attract investors looking for ESG-compliant investments for their portfolios (ELTI, s.d.), thus generating more value for investors. The portion of ESG bonds linked to affordable housing, energy efficiency and circular economy is still very limited compared to general GHG reduction emissions. District-level social housing renovation could fall into those categories depending on the project scope. The green, social and sustainable bonds principles are guidelines for the bonds issuance process, which recommend transparency and promote integrity and provide a framework that defines impacts and guarantees the relevance of proceeds. Respect for the guiding principles is a key element to be followed to make sure bonds have a clear structure to guarantee that projects being financed comply and are able to ensure the expected impact. What can financing be used for Sustainability bonds have a hybrid set of objectives that combines green and social issues. For example, previous bond issuance has included energy-efficient buildings for disadvantaged people and clean public transport with tramline extensions. The use of proceeds of sustainable bonds must combine the social and the green use of proceed. Link(s) https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/Example 5 Financing instrument Loans Who provides the financing and through which entity? The EIB Group provides financing based on its own capital, provided by the EU Member States and has received capital from the EU Commission to develop certain financing activities or to provide technical assistance. What can financing be used for? Concerning energy efficiency investments in existing buildings, all capital expenditures related to energy efficiency improvements to the building envelope and building systems are eligible for EIB financing. The expected energy savings can be estimated through an energy audit, a comparison between the energy performance certificate before and after the works, or any other transparent and proportionate method acceptable to the EIB. How much is the investment? EIB financing terms match the economic life of each project – which can sometimes exceed 30 years. EIB typically covers up to 50% of a project’s total cost with loans starting at €25 million and even lower amounts in some cases. However, for energy efficiency investments, it can go up to 75% of the eligible portfolio capital cost. • Individual loans for the public sector (starting at €25 million) to finance a single large investment project or investment programme. • Framework loans for the public sector: Flexible loans to finance an investment programme consisting of smaller projects. Link(s) https://www.eib.org/attachments/thematic/social_and_affordable_housing_en.pdfExample 5 Financing instrument Loans Who provides the financing and through which entity? The EIB Group provides financing based on its own capital, provided by the EU Member States and has received capital from the EU Commission to develop certain financing activities or to provide technical assistance. What can financing be used for? Concerning energy efficiency investments in existing buildings, all capital expenditures related to energy efficiency improvements to the building envelope and building systems are eligible for EIB financing. The expected energy savings can be estimated through an energy audit, a comparison between the energy performance certificate before and after the works, or any other transparent and proportionate method acceptable to the EIB. How much is the investment? EIB financing terms match the economic life of each project – which can sometimes exceed 30 years. EIB typically covers up to 50% of a project’s total cost with loans starting at €25 million and even lower amounts in some cases. However, for energy efficiency investments, it can go up to 75% of the eligible portfolio capital cost. • Individual loans for the public sector (starting at €25 million) to finance a single large investment project or investment programme. • Framework loans for the public sector: Flexible loans to finance an investment programme consisting of smaller projects. Link(s) https://www.eib.org/attachments/thematic/social_and_affordable_housing_en.pdfExample 2 Financing instrument Grants Who provides the financing and through which entity? The LIFE Programme is the EU’s funding instrument for the environment and climate action. What can financing be used for? The programme supports demonstration, best practices, coordination and support actions, capacity building, and governance projects. For instance, on the objective of the clean energy transition, 7 projects will set up 16 new one-stop shops facilitating energy renovation for thousands of homeowners across five EU countries: - Three projects will help households to reduce their energy bills through energy renovation for vulnerable districts and tailor-made renovation roadmaps in southern and Eastern Europe. - Six projects will boost energy communities at local and regional levels to invest in the energy transition. They will also engage in energy efficiency and renewable energy generation projects, including community heating and cooling across Europe. Link(s) https://commission.europa.eu/funding-tenders/find-funding/eu-funding-programmes/programme-environment-and-climate-action-life_enExample 6 Financing instrument Project Finance Who provides the financing and through which entity? Project Finance, particularly in the context of energy renovation projects, involves a structured financial arrangement tailored to mitigate risks and attract investment. Typically, a Special Purpose Vehicle (SPV) is established for such endeavours. The SPV operates as a separate legal entity, allowing for a non-recourse or limited recourse financing approach. This means that the financial liability of project investors is restricted to the assets and cash flows of the SPV, insulating them from potential losses beyond their initial investment. In the realm of these projects, the SPV is responsible for aggregating and managing the project's financial resources, assets, and cash flows independently from the originating company. The SPV is often constituted by project stakeholders, including investors, lenders, and developers, who collectively capitalize on and control the entity. What can financing be used for? In energy renovation Project Finance, the creation of an SPV serves several purposes. Firstly, it helps isolate the project from the financial obligations of the parent company, enhancing risk management. Secondly, the non-recourse or limited recourse nature of the financing encourages external investors by assuring them that their liability is tied to the project's performance rather than the overall financial health of the parent company. This structure aligns incentives for project success and safeguards investors against unforeseen challenges, fostering a more attractive investment environment for energy renovation initiatives. In recent years, within the context of social and affordable housing renovations, major promoters such as public authorities, social housing associations, and private companies have identified Project Finance and the establishment of SPVs as new financial avenues to successfully undertake their projects. While restrictive regulations for public administrations in some countries have significantly constrained the use of these financial schemes and the creation of SPVs, there are several successful cases prompting consideration throughout the European Union. Despite the predominant focus on improving and renovating heating and cooling networks and installing PV panels at the district level, these cases serve as inspiration and are being studied for their comprehensive application in the energy renovation of social and affordable housing. A good example of a PPP and Project Finance is the case of MES Barcelona. Link(s) https://media.iese.edu/research/pdfs/ST-0645-EPublic institution - Service infrastructure - 1m-10m - Europe Financing instrument Grants Who provides the financing and through which entity? The LIFE Programme is the EU’s funding instrument for the environment and climate action. What can financing be used for? The programme supports demonstration, best practices, coordination and support actions, capacity building, and governance projects. For instance, on the objective of the clean energy transition, 7 projects will set up 16 new one-stop shops facilitating energy renovation for thousands of homeowners across five EU countries: - Three projects will help households to reduce their energy bills through energy renovation for vulnerable districts and tailor-made renovation roadmaps in southern and Eastern Europe. - Six projects will boost energy communities at local and regional levels to invest in the energy transition. They will also engage in energy efficiency and renewable energy generation projects, including community heating and cooling across Europe. Link(s) https://commission.europa.eu/funding-tenders/find-funding/eu-funding-programmes/programme-environment-and-climate-action-life_enExample 7 Financing instrument Combination of different financing instruments Who provides the financing? JESSICA stands for Joint European Support for Sustainable Investment in City Areas. This initiative is being developed by the European Commission and the European Investment Bank (EIB), in collaboration with the Council of Europe Development Bank (CEB). Member States are being given the option of using some of their EU cohesion funding, to make repayable investments in projects forming part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds (UDFs) and, if required, Holding Funds. What can financing be used for? Jessica has supported energy efficiency improvements in buildings. Link(s) https://www.eib.org/en/publications/jessicaExample 6 Financing instrument Combination of different financing instruments Who provides the financing? JESSICA stands for Joint European Support for Sustainable Investment in City Areas. This initiative is being developed by the European Commission and the European Investment Bank (EIB), in collaboration with the Council of Europe Development Bank (CEB). Member States are being given the option of using some of their EU cohesion funding, to make repayable investments in projects forming part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds (UDFs) and, if required, Holding Funds. What can financing be used for? Jessica has supported energy efficiency improvements in buildings. Link(s) https://www.eib.org/en/publications/jessicaExample 7 Financing instrument Grants Who provides the financing and through which entity? The Innovation Fund focuses on highly innovative technologies and flagship projects within Europe that can bring about significant emission reductions. It covers all EU countries, plus Norway, Lichtenstein and Iceland. How much is the investment? The funds are financed by revenues from the actions of allowances under the EU Emissions Trading System (ETS). Therefore, the Innovation Fund’s total funding depends on the carbon price, and it may amount to about €40 billion from 2020 to 2030, calculated by using a carbon price of €75/tCO2. The Innovation Fund provides financial support for project costs, with different grant funding percentages. Normally up to 60% of the relevant costs or in some cases up to 100%. The disbursement of grants is flexible and tailored to meet the financing needs of the project. Funding is allocated based on achieved milestones throughout the project's lifespan. Innovation Fund grants can be combined with funding from other support programmes, such as Horizon Europe, InvestEU, Modernisation Funds, Just Transition Fund and others. What can financing be used for? For projects to qualify for funding, they must demonstrate sufficient maturity in terms of planning, business model, and the establishment of robust financial and legal structures. This ensures that selected initiatives have reached a stage where they possess a solid foundation for successful implementation. Objectives and eligible projects of the Innovation Fund. The fund focuses on highly innovative technologies in the following categories: • Renewable energy. • Energy storage. • Carbon Capture and Storage. • Carbon Capture and Utilisation. • Cross-cutting (any combination of the above activities). Other interesting aspects? The projects are selected through competitive bidding. The specific details of the bidding are defined in each individual call for proposals. During the entirety of the Innovation Fund's duration, which spans from 2020 to 2030, periodic calls for project proposals will be conducted. These calls provide opportunities for project promoters to submit their proposals and seek funding for their innovative initiatives. To apply for the Innovation Fund, project promoters are required to submit their proposals through the EU Funding and Tenders portal. Link(s) https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe_enExample 8 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The European Energy Efficiency Fund (EEEF), financed by the EU Commission and other financial entities, contributes to enhancing energy efficiency and fostering renewable energy in the form of a targeted private–public partnership, primarily through the provision of direct financing of projects and partnering with financial institutions. The final beneficiaries of EEEF are municipal, local and regional authorities as well as public and private entities acting on behalf of those authorities. How much is the investment? Funds to support financial institutions: The EEEF provides to partner financial institutions senior and subordinated debt, guarantees and risk sharing. What can financing be used for? The fund can finance Public and private buildings incorporating renewable energy and/or energy efficiency solutions, as well as other related energy of digital infrastructures. Therefore, it can finance the energy renovations of residential buildings. Link(s) https://www.eeef.lu/home.htmlExample 2 Financing instrument Grants Who provides the financing and through which entity? Modernisation Fund (MF) aims at accelerating the transition to climate neutrality – aligning with the goals outlined in the ETS Directive, along with the objectives of the Union's 2030 climate and energy policy framework, as well as the long-term goals stated in the Paris Agreement –. Ten Member States can benefit from this fund: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia. There are a number of key steps in the financial process that all of these countries must take into account. How much is the investment? The MF provides these countries with direct funds to invest in a project that meets specific criteria. To ensure the commercial viability of investments and their contribution to the 2030 climate targets, investment proposals must include mature technologies. In essence, the proposed technologies should have been successfully implemented and proven effective in operational settings with comparable conditions, scale, and reliable references. What can financing be used for? Seventy percent of the funds must be invested in these specific areas. Investments in these areas are referred to as "priority investments": • generation and use of electricity from renewable sources; • improvement of energy efficiency (including in transport, buildings, agriculture, waste, and except in energy efficiency related to energy generation using solid fossil fuels); • energy storage; • modernisation of energy networks (including district heating pipelines, grids for electricity transmission, and increase of interconnections among Member States); and • support to a just transition in carbon-dependent regions in the beneficiary Member States (including support to the redeployment, re-skilling and up-skilling of workers, education, job-seeking initiatives and start-ups, in dialogue with social partners). Other interesting aspects? Investments that meet the requirements for the Modernisation Fund but do not fall within the designated priority areas are categorized as "non-priority investments”. For such investments, the Modernisation Fund can provide financial coverage for up to 70% of the associated costs, with the condition that the remaining costs are covered by private funding sources. Link(s) https://modernisationfund.eu/Example 2 Financing instrument Grants Who provides the financing and through which entity? Modernisation Fund (MF) aims at accelerating the transition to climate neutrality – aligning with the goals outlined in the ETS Directive, along with the objectives of the Union's 2030 climate and energy policy framework, as well as the long-term goals stated in the Paris Agreement –. Ten Member States can benefit from this fund: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia. There are a number of key steps in the financial process that all of these countries must take into account. How much is the investment? The MF provides these countries with direct funds to invest in a project that meets specific criteria. To ensure the commercial viability of investments and their contribution to the 2030 climate targets, investment proposals must include mature technologies. In essence, the proposed technologies should have been successfully implemented and proven effective in operational settings with comparable conditions, scale, and reliable references. What can financing be used for? Seventy percent of the funds must be invested in these specific areas. Investments in these areas are referred to as "priority investments": • generation and use of electricity from renewable sources; • improvement of energy efficiency (including in transport, buildings, agriculture, waste, and except in energy efficiency related to energy generation using solid fossil fuels); • energy storage; • modernisation of energy networks (including district heating pipelines, grids for electricity transmission, and increase of interconnections among Member States); and • support to a just transition in carbon-dependent regions in the beneficiary Member States (including support to the redeployment, re-skilling and up-skilling of workers, education, job-seeking initiatives and start-ups, in dialogue with social partners). Other interesting aspects? Investments that meet the requirements for the Modernisation Fund but do not fall within the designated priority areas are categorized as "non-priority investments”. For such investments, the Modernisation Fund can provide financial coverage for up to 70% of the associated costs, with the condition that the remaining costs are covered by private funding sources. Link(s) https://modernisationfund.eu/Example 8 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The European Energy Efficiency Fund (EEEF), financed by the EU Commission and other financial entities, contributes to enhancing energy efficiency and fostering renewable energy in the form of a targeted private–public partnership, primarily through the provision of direct financing of projects and partnering with financial institutions. The final beneficiaries of EEEF are municipal, local and regional authorities as well as public and private entities acting on behalf of those authorities. How much is the investment? Funds to support financial institutions: The EEEF provides to partner financial institutions senior and subordinated debt, guarantees and risk sharing. What can financing be used for? The fund can finance Public and private buildings incorporating renewable energy and/or energy efficiency solutions, as well as other related energy of digital infrastructures. Therefore, it can finance the energy renovations of residential buildings. Link(s) https://www.eeef.lu/home.htmlExample 3 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The European Energy Efficiency Fund (EEEF), financed by the EU Commission and other financial entities, contributes to enhancing energy efficiency and fostering renewable energy in the form of a targeted private–public partnership, primarily through the provision of direct financing of projects and partnering with financial institutions. The final beneficiaries of EEEF are municipal, local and regional authorities as well as public and private entities acting on behalf of those authorities. How much is the investment? Funds to support financial institutions: The EEEF provides to partner financial institutions senior and subordinated debt, guarantees and risk sharing. The fund can finance Public and private buildings incorporating renewable energy and/or energy efficiency solutions, as well as other related energy of digital infrastructures. Therefore, it can finance the energy renovations of residential buildings. Link(s) https://www.eeef.lu/home.htmlPublic institution - Multi-Residential building - Less than 5m - France Example 1 Financing instrument Grants Who provides the financing and through which entity? MassiRéno: a National economic recovery plan for energy renovation of social housing following the Covid crisis. After the Covid pandemic, the French government launched a National economic recovery plan called MassiRéno. What can financing be used for? €445 million devoted to the financing of restructuring or deep energy retrofit of social housing. €40 million to support the implementation of efficient and replicable industrial solutions for energy renovation via the specific call for projects "Massification of exemplary renovation of social housing” (MassiRéno). And, €15 million for social rental housing in overseas regions and departments (a specific mechanism). How much is the investment? It allocated €500 million in subsidies for the energy renovation of social housing over 2021 and 2022. Other interesting aspects? The project has two main ambitions: to provide financial support to social housing organisations that engage in the massification of energy renovation and to support the deployment of innovative, integrated, and efficient industrial solutions as well as low-carbon and resource-saving renovations. Link(s) https://www.ecologie.gouv.fr/plan-relance-appel-projets-massification-renovation-exemplaire-du-parc-locatif-social-massireno-0Public institution - Multi-Residential building - 1m-10m - France Financing instrument Loans Who provides the financing and through which entity? The major funding solution of energy renovation for social housing is low-interest loans (68% in 2015 ). The Banque des Territoires (French Territorial Bank) is the main partner of social housing organisations for renovations. It is a department of the Caisse des dépôts for developing loans, investment advice and financing solutions to meet the needs of local authorities, social housing organisations and local public companies. It collects funds from the regulated savings fund mechanism called Livret A, which is accessible to all French people, to provide two main loans: a. The Eco loan (Eco-PLS) b. Renovation advance loan, that can also get loans from private banks. To access the Eco-PLS loan, a step-by-step approach is outlined on the official Service-Public.fr website. The platform provides information on the three types of renovation works: One-off renovation, Comprehensive renovation, and Sanitation. Additionally, it details the maximum amount of the eco-PTZ available based on the nature of the works. Link(s) https://www.banquedesterritoires.fr/Example 2 Financing instrument Grants Who provides the financing and through which entity? Regional or local authorities provide grants for energy renovation to social housing organisations. Departments and Metropolises provide grants for the renovation of social housing. Indeed, French Public housing organisations (OPH, public housing organization - 45% of the stock) have a majority of local authorities on their board, which are particularly involved in the strategy and financing of social housing renovation operations. Link(s) https://www.proprietairemaintenant.fr/les-offices-publics-de-lhabitat-ophPublic institution - District level - 1m-10m - France Example 1 Financing instrument Grants Who provides the financing and through which entity? The Law on the Energy Transition for Green Growth (LTECV) aims to reach 32% of Renewable and Recoverable Energies (RE&R) in its energy mix by 2030. Concerning renewable heat, the State has entrusted the ADEME, since 2009, with the management of the Heat Fund in order to massify the installations of renewable heat and recovery heat and the development of the heat networks which are related to them. What can financing be used for? The ADEME grants aid to support the design and monitoring of such projects: studies, project management assistance, promotion, training, communication, evaluation, etc. and also allocates appropriate investment grants (subsidies, reimbursable grants, etc.) to enable the project to be economically balanced and to offer a competitive price for heat to users. In some cases, the heat fund grants can be combined with grants from partners (Region, FEDER...) and White Certificates. Link(s) https://www.ademe.frExample 2 Financing instrument Grants Who provides the financing and through which entity? Renovation at the district level can be obtained from the National Agency for Urban Renovation (ANRU). What can financing be used for? The ANRU aims to revitalize specific neighbourhoods (particularly sensitive urban areas) and improve the living conditions of their residents and contribute to the State’s objective to develop the construction and renovation of real estate in certain geographical areas in France. These priority neighbourhoods are benefiting from grants from ANRU to set up a profound transformation. These priority neighbourhoods are benefiting from grants from ANRU to set up a profound transformation: renovation of street furniture; rehabilitation or destruction of old buildings; development of outdoor spaces; establishment of local shops; installation of new public, social and cultural facilities (media libraries, schools, etc.) and construction of new quality programs. How much is the investment? The New National Urban Renewal Program (NPNRU) is endowed with €12 billion in grant equivalent (or €14 billion in financial assistance) allocated by the ANRU from 2014 to 2030 to financiers of district renovation (local authorities and social landlords in particular). It is funded by contributions from Action Logement (€8.4 billion), the social union for housing (€2.4 billion), and the State (€1.2 billion). Link(s) https://www.quartus-residentiel.fr/immobilier-neuf/guide-immobilier-neuf/zone-anru#:~:text=Les%20zones%20ANRU%20(Agence%20Nationale,%C3%A0%20un%20prix%20plus%20avantageux. https://www.anru.fr/le-nouveau-programme-national-de-renouvellement-urbain-npnru#:~:text=L'ANRU%20intervient%20de%20deux,d'euros%20de%20concours%20financiersPublic institution - Multi-residential building - 1m-10m - The Netherlands Financing instrument Combination of different financing instruments Who provides the financing and through which entity? In 2014, BNG Bank developed an ESG issuance framework in cooperation with PON-Telos. Under this framework, the most sustainable municipalities and social housing associations were selected. The loans provided to these “best-in-class” performing core clients were consecutively funded with proceeds from the ESG bonds which the bank issued. This framework was successfully deployed until 2020. The launch of the UN SDGs, as well as the launch of BNG’s Road to Impact strategy- provided a logical backdrop to modernize the framework in 2021. As a result, the BNG Sustainable Finance Framework was launched in that year. It is under this ESG framework that BNG Bank has issued ESG bonds for Dutch municipalities and social housing associations since 2021. What can financing be used for? For energy renovation of social housing. The Sustainable Finance Framework follows the four key pillars of the ICMA Green Bond Principles (GBP) and Social Bond Principles (SBP), and of the LMA Green Loan Principles (GLP): Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting. Given this structure, the framework is divided in two subframeworks that each focus on a different client group in terms of use of proceeds: - Sub-framework I for loans to Dutch municipalities. - Sub-framework II for loans to Dutch social housing associations. To access loans and financial products from BNG Bank through ESG Bonds, you must be either a municipality or a social housing association in the Netherlands. Link(s) https://www.bngbank.com/Public institution - Multi-residential building - Less than 5m - Lithuania Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The key priorities in relation to buildings of the National Energy and Climate Action Plan (NECAP) of Lithuania for 2021-2030, are to promote the integrated renovation of the multi-apartment and public buildings (giving priority to renovation of residential neighbourhoods). In addition, the action plan aims at continuing making more sustainable the district heating networks. What can financing be used for? Renewable energy self-generation, Electricity prosumers mean natural and legal persons planning to produce electricity with solar, wind and biomass power plants. With an installed capacity of not more than 500 kW, they can become prosumers (consumers and producers) and can also ‘store’ the electricity produced. The NECAP foresees financial support to prosumers. Link(s) https://commission.europa.eu/publications/lithuania-draft-updated-necp-2021-2030_en https://am.lrv.lt/uploads/am/documents/files/Voluntary%20National%20Review%202023_LITHUANIA.pdfPublic institution - Service infrastructure - 1m-10m - Lithuania Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The key priorities in relation to buildings of the National Energy and Climate Action Plan (NECAP) of Lithuania for 2021-2030, are to promote the integrated renovation of the multi-apartment and public buildings (giving priority to renovation of residential neighbourhoods). In addition, the action plan aims at continuing making more sustainable the district heating networks. How much is the investment? The total financial requirement of the sector amounts to €570 million for the period 2021-2030 according to the plan, of which €382 million will come from public funding and €188 million from private funding. Available sources of public funds are EU Structural Funds 2021-2027, the heat tariff, the Climate Change Programme and the LIFE Programme. What can financing be used for? According to the NECAP, the largest portion of investments will be allocated for the development of generation capacity from renewable energy and only a relatively small portion for the modernization of heat transmission infrastructure. Other interesting aspects? The heat losses of these networks have already been substantially reduced (from 33% to 15%) and most of the natural gas has been replaced by biomass and heat from municipal waste incinerators (from 2% in 2004 to 68 % in 2018). Link(s) https://commission.europa.eu/publications/lithuania-draft-updated-necp-2021-2030_enPublic institution - District level - 1m-10m - Lithuania Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The key priorities in relation to buildings of the National Energy and Climate Action Plan (NECAP) of Lithuania for 2021-2030, are to promote the integrated renovation of the multi-apartment and public buildings (giving priority to renovation of residential neighbourhoods). In addition, the action plan aims at continuing making more sustainable the district heating networks. How much is the investment? The total financial requirement of the sector amounts to €570 million for the period 2021-2030 according to the plan, of which €382 million will come from public funding and €188 million from private funding. Available sources of public funds are EU Structural Funds 2021-2027, the heat tariff, the Climate Change Programme and the LIFE Programme. What can financing be used for? According to the NECAP, the largest portion of investments will be allocated for the development of generation capacity from renewable energy and only a relatively small portion for the modernization of heat transmission infrastructure. Other interesting aspects? The heat losses of these networks have already been substantially reduced (from 33% to 15%) and most of the natural gas has been replaced by biomass and heat from municipal waste incinerators (from 2% in 2004 to 68 % in 2018). Link(s) https://commission.europa.eu/publications/lithuania-draft-updated-necp-2021-2030_enPublic institution - District level - 1m-10m - Romania Financing instrument Loans Who provides the financing and through which entity? EIB financing of the energy renovations of residential buildings in several districts of Bucharest. The EIB financing is a programme loan to finance multiple investments of multiple local authorities that will undertake the building renovations. The projects are part of the National/Regional Energy Efficiency Action Plans or the national/regional Energy Efficiency schemes developed in Romania. Some of the financing falls under the initiative of Smart finance for Smart buildings. What can financing be used for? The project focus on thermal energy efficiency improvements of the building envelope of multi-apartment residential buildings (wall, roofs and cellar insulation), window replacement, improvements in the heating and domestic hot water systems and replacement of indoor lighting located in common spaces. Mostly low-income households live in these buildings. How much is the investment? It has been developed in several phases, from 2012 to 2022. The Bucharest districts (so-called sectors) concerned are the following: sectors 1, 2, 4, 5 and 6. The total amount of finance granted by the EIB amount to €253 million. Link(s) https://www.eib.org/en/projects/all/20120498 https://www.eib.org/en/projects/pipelines/all/20160951 https://www.eib.org/en/projects/all/20160766 https://www.eib.org/en/projects/all/20160768 https://www.eib.org/en/projects/all/20160952Public institution - Service infrastructure - 1m-10m - Romania Financing instrument Loans Who provides the financing and through which entity? EIB financing of the energy renovations of residential buildings in several districts of Bucharest. The EIB financing is a programme loan to finance multiple investments of multiple local authorities that will undertake the building renovations. The projects are part of the National/Regional Energy Efficiency Action Plans or the national/regional Energy Efficiency schemes developed in Romania. Some of the financing falls under the initiative of Smart finance for Smart buildings. What can financing be used for? The project focus on thermal energy efficiency improvements of the building envelope of multi-apartment residential buildings (wall, roofs and cellar insulation), window replacement, improvements in the heating and domestic hot water systems and replacement of indoor lighting located in common spaces. Mostly low-income households live in these buildings. How much is the investment? It has been developed in several phases, from 2012 to 2022. The Bucharest districts (so-called sectors) concerned are the following: sectors 1, 2, 4, 5 and 6. The total amount of finance granted by the EIB amount to €253 million. Link(s) https://www.eib.org/en/projects/all/20120498 https://www.eib.org/en/projects/pipelines/all/20160951 https://www.eib.org/en/projects/all/20160766 https://www.eib.org/en/projects/all/20160768 https://www.eib.org/en/projects/all/20160952Public institution - District level - More than 100m - Spain Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The EIB has financed investments in new and renovation of existing social housing and affordable housing in Spain, using the guarantee from the European Fund for Strategic Investments (EFSI), the predecessor of InvestEU. The operation consists of an investment platform developed in cooperation with the Instituto de Crédito Oficial (ICO), the Spanish National Promotional Bank, to support promoters (both public and private companies) operating in the social and affordable housing sector. How much is the investment? The EIB loan amounts to approximately €300 million to finance an investment cost of €600 million. The EIB financing will improve funding terms compared to market sources of financing, help to attract private financers and provide advice in view of optimising the financing package. What can financing be used for? Investments under this operation will mainly include new constructions and rehabilitations, energy efficiency improvements and accessibility measures in social and affordable housing. For example, the vehicle will provide financing for the construction of social and affordable housing in Seville and Malaga. Link(s) https://www.ico.esPublic institution - Multi-residential building - Less than 1m - Spain Example 1 Financing instrument Combination of different financing instruments Who provided the financing and through which entity? The Solidarity Fund for Energy Rehabilitation by the Naturgy Foundation does not provide any specific financing contribution, but it is focused on assisting in the rehabilitation of social housing and vulnerable family homes. The Fund is constituted with the contributions made by the Naturgy Foundation. In addition, monetary or in-kind contributions can be made by collaborating entities and companies. What can financing be used for? Founded in 2018, it already has more than 3,000 express rehabilitations, related to wall and ceiling insulation, damp issues, carpentry, boiler repair or replacement, and appliance upgrades, as well as electrical installation repairs, among others. Other interesting aspects? It is included as an example of good practice in the National Strategy against Energy Poverty 2019-2024. It is aimed at homes of vulnerable families owned or managed by public administrations and third-sector entities. Link(s) https://www.fundacionnaturgy.org/accion-social/plan-vulnerabilidad-energetica/fondo-solidaridad-rehabilitacion-energetica/Public institution - District level - Less than 5m - Spain Financing instrument Project Finance Who provides the financing and through which entity? MES Barcelona (Barcelona Sustainable Energy Mechanism) program, conceived and designed by the 2030 Agenda Office of the Barcelona City Council, exemplifies the determination of public administrations to join the private sector in the search for solutions to these energy challenges. MES Barcelona is a public-private partnership project that uses the tool of co-investment by public and private actors, with the specific objective of facilitating the energy transition and long-term sustainable energy savings by promoting self-consumption of electricity, in households as well as in companies and public facilities, through the use of photovoltaic collectors that harness solar energy. At present, the program is at an early stage, in which there are still areas to be defined and room for learning and improvement by all of the actors involved. What can financing be used for? An essential feature of MES Barcelona is that the returns it generates must be not only financial, but above all environmental and social. The project includes various schemes for co-investment by private and/or public entities, as well as other forms of investment. The most prominent example of a co-investment scheme is the creation of an SPV (special purpose vehicle) in which the city of Barcelona will be able to acquire a 30% stake. By February 2023, the City Council had reached agreements with five approved investors to set up nine joint SPVs: - Six SPVs are for public, industrial and service buildings (€57.52 million of investment). - Three SPVs are for the residential market (€18.10 million of investment). Together, these SPVs would represent an installed capacity of 87,23 MWp, for which the City Council will only have to invest €11.07 million (22,15% of the planned investment of €50 million). The total investment will be €7.56 million, provided by the City Council (14,65%), approved investors (34,48%) and through SPV leverage financing (50,8%). In terms of ESG impact indicators, these projects would deliver the following results: - Global warming: reduction of 28,618 tons per year of CO₂. - Health: reduction of 70,351 kg of PM10 per year. - Social benefit: €5,730,410 per year in avoided social costs. - Economy: 349 jobs created. The number of requests for information about the project (leads) has already reached 1,500 for buildings, the vast majority of which are residential. Information has been requested from 750 leads, and concrete proposals have been presented to over 100. Link(s) https://media.iese.edu/research/pdfs/ST-0645-EPublic institution - Multi-residential building - Less than 5m - Spain Financing instrument Project Finance Who provides the financing and through which entity? MES Barcelona (Barcelona Sustainable Energy Mechanism) program, conceived and designed by the 2030 Agenda Office of the Barcelona City Council, exemplifies the determination of public administrations to join the private sector in the search for solutions to these energy challenges. MES Barcelona is a public-private partnership project that uses the tool of co-investment by public and private actors, with the specific objective of facilitating the energy transition and long-term sustainable energy savings by promoting self-consumption of electricity, in households as well as in companies and public facilities, through the use of photovoltaic collectors that harness solar energy. At present, the program is at an early stage, in which there are still areas to be defined and room for learning and improvement by all of the actors involved. What can financing be used for? An essential feature of MES Barcelona is that the returns it generates must be not only financial, but above all environmental and social. The project includes various schemes for co-investment by private and/or public entities, as well as other forms of investment. The most prominent example of a co-investment scheme is the creation of an SPV (special purpose vehicle) in which the city of Barcelona will be able to acquire a 30% stake. By February 2023, the City Council had reached agreements with five approved investors to set up nine joint SPVs: - Six SPVs are for public, industrial and service buildings (€57.52 million of investment). - Three SPVs are for the residential market (€18.10 million of investment). Together, these SPVs would represent an installed capacity of 87,23 MWp, for which the City Council will only have to invest €11.07 million (22,15% of the planned investment of €50 million). The total investment will be €7.56 million, provided by the City Council (14,65%), approved investors (34,48%) and through SPV leverage financing (50,8%). In terms of ESG impact indicators, these projects would deliver the following results: - Global warming: reduction of 28,618 tons per year of CO₂. - Health: reduction of 70,351 kg of PM10 per year. - Social benefit: €5,730,410 per year in avoided social costs. - Economy: 349 jobs created. The number of requests for information about the project (leads) has already reached 1,500 for buildings, the vast majority of which are residential. Information has been requested from 750 leads, and concrete proposals have been presented to over 100. Link(s) https://media.iese.edu/research/pdfs/ST-0645-EPublic institution - Service infrastructure - Less than 1m - Spain Financing instrument Grants Who provides the financing and through which entity? Energy Diversification and Saving (IDAE), has developed the PREE Program endowed with a package of subsidies aimed at financing the renovation of the housing stock, which are managed in collaboration with the regional governments. What can financing be used for? This incentive Program aims to promote self-consumption and distributed generation, demand management, storage and flexibility, the promotion of local energy communities and the incorporation of renewable energies, with the objective by 2030 to have 42% of all energy used coming from renewable energies, with 74% of electrical energy coming renewable energy. How much is the investment? This Program is regulated by Law RD 477/2021, which gives direct concession to the autonomous communities to manage these incentive programs, which will give them access to €660 million, which can be increased to €1,320 million. Other interesting aspects? The regulatory bases of this program establish that these aids are not compatible with other aid programs that come from European funds. Link(s) https://www.idae.es/ayudas-y-financiacion/para-la-rehabilitacion-de-edificios/convocatorias-cerradas/programa-preeExample 2 Financing instrument Grants Who provides the financing and through which entity? Energy Diversification and Saving (IDAE), has developed the PREE Program endowed with a package of subsidies aimed at financing the renovation of the housing stock, which is managed in collaboration with the regional governments. What can financing be used for? The PREE Program subsidizes renovation projects ranging from changes in the thermal envelope of the building, to the replacement of thermal installations based on fossil fuels by thermal generation based on renewable sources, with the objective of a minimum reduction of 30% of primary energy consumption from non-renewable sources. How much is the investment? This Program is regulated by Law RD 477/2021, which gives direct concession to the autonomous communities to manage these incentive programs, which will give them access to EUR 660 million, which can be increased to €1,320 million. Other interesting aspects? The regulatory bases of this program establish that these aids are not compatible with other aid programs that come from European funds. Link(s) https://www.idae.es/ayudas-y-financiacion/para-la-rehabilitacion-de-edificios/convocatorias-cerradas/programa-preePrivate entities - Multi-residential building - 1m-10m - Europe Example 1 Financing instrument Combination of different financing instruments Who provides the financing? It is possible to be financial by the cohesion policy funding, especially for a social and affordable housing renovation project. It is recommended to align the project's objective with the objectives of cohesion policy funding to maximize access to the available funding. The different national governments apply to the EC to receive funds from Cohesion Fund. The national government will then have to develop the financial instrument it will use to distribute them to citizens to rehabilitate their houses. National entities (managing authorities) are responsible to decide the amount of Cohesion Funds to support building renovations, either as grants or to develop new FIs with the same purpose. How much is the investment? In the current programming period 2021-2027, EU funds allocated to the Cohesion Policy amount to EUR 392 billion. The Cohesion policy funds support, through its investments (five policy objectives POs). What can financing be used for? Green investments in building renovations, affordable buildings or not. In the case of renovation of social and affordable housing, social housing providers can apply directly for funding or benefit from grants funded by cohesion funding, such as for energy renovations. The different funds are the following: - The European Regional Development Fund (ERDF) will support investments in all 5 policy objectives, but PO1 and PO2 are the main priorities. - The European Social Fund Plus (ESF+) main priority is PO4. - The Cohesion Fund (CF) supports policy objectives PO2 and PO3. - The Just Transition Fund (JTF) provides support under dedicated specific objectives (art. 8 of JTF regulation, essentially PO2). Link(s) https://www.fi-compass.eu/funds/erdf https://ec.europa.eu/regional_policy/funding/accessing-funds_enPrivate entities - Multi-residential building - Less than 5m - Europe Example 1 Financing instrument On tax/on-bill Who provided the financing and through which entity? EnergieSprong is a pioneering program that originated in the Netherlands in 2010, introducing and retrofitting houses to meet high energy efficiency standards. This initiative has since expanded its footprint to countries like the United Kingdom, the United States, France, Germany, Italy and Canada. What can financing be used for? The program involves attaching a panel shell to the exterior of existing buildings to significantly enhance their thermal efficiency. Launched by the Dutch government, EnergieSprong focuses on retrofitting existing structures to achieve zero-energy status. Through collaborations with social housing companies and contractors, the program successfully retrofitted 111,000 houses in the Netherlands. Following the retrofit, these homes attain net-zero energy, generating the total energy they need for their own requirements. Other interesting aspects? An Energiesprong renovation (or new built) is financed in two ways: through energy cost savings from tenants and by reduced maintenance and repairs costs for housing associations. Both are part of the business case. The objective is that tenants have the same monthly expenses – they pay the housing association an energy service plan instead of the bill of the energy supplier. The housing association can now use this new income stream to pay for the renovation. Link(s) https://energiesprong.org/Private entities - Service infrastructure - 1m-100m - Europe Example 1 Financing instrument Energy performance contracting (EPC) Who provides the financing and through which entity? Energy Performance Contracting (EPC) is an arrangement in which an Energy Service Company (ESCO) enters into an integrated contract with the end user and a financing institution to design and implement EE measures with a guaranteed level of performance. Savings can be used to repay upfront investment costs. Under an EPC arrangement, the ESCO uses the stream of income from the cost savings or energy produced, to repay the costs of the project, including the costs of the investment. Essentially the ESCO will not receive its payment unless the project delivers as expected. How much is the investment? When promoters are looking for ESCO financing, they have to keep in mind that not all projects fit the investing strategy of all ESCOs. Some organisations could be looking for projects with short payback periods like HVAC component replacements and automaton or LED lighting installation, while others could be looking for more long-term payback, like for works related to deep renovations. What can financing be used for? HVAC, PVs and LED lightning. Other interesting aspects? ESCO market in Europe focuses on public, commercial buildings and industry. There are very few examples of ESCO-type approaches in the residential sector. Link(s) https://aiguasol.coop/wp-content/uploads/2018/12/Residential_Retrofits.pdfExample 2 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Cohesion Policy 2021-2027 is implemented through various distinct funds, which align with the five objectives of Regional Policy Funding. All these funds are managed by the EU countries themselves, through partnership agreements with the EU Commission. These agreements cover a number of investment programmes, in order to channel the funding to the different regions and policy areas. To get access to CF, a promoter of a building/district renovation project will have to follow the application procedures of the relevant managing authority. Some have an ongoing procedure, others accept applications at certain times only. It is recommended to visit the website of the EC in order to better understand how the funds are accessed: https://ec.europa.eu/regional_policy/funding/accessing-funds_en. What can financing be used for? In the case of renovation of social and affordable housing, social housing providers can often apply directly for funding or benefit from grants funded by cohesion funding, such as for energy renovations. The different funds are the following: - The European Regional Development Fund (ERDF) will support investments in all 5 policy objectives, but PO1 and PO2 are the main priorities. - The European Social Fund Plus (ESF+) main priority is PO4. - The Cohesion Fund (CF) supports policy objectives PO2 and PO3. - The Just Transition Fund (JTF) provides support under dedicated specific objectives (art. 8 of JTF regulation, essentially PO2). Other interesting aspects? HVAC, PVs and LED lightning. Other interesting aspects? Organizations that can benefit from regional funding include public bodies, some private sector organizations (especially small businesses), universities, associations, NGOs and voluntary organizations. Foreign firms with a base in the region covered by the relevant operational programme can also apply, provided they meet European public procurement rules. Link(s) https://www.fi-compass.eu/funds/erdf https://ec.europa.eu/regional_policy/funding/accessing-funds_enPrivate entities - District level - 1m-100m - Europe Example 1 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Cohesion Policy 2021-2027 is implemented through various distinct funds, which align with the five objectives of Regional Policy Funding. All these funds are managed by the EU countries themselves, through partnership agreements with the EU Commission. These agreements cover a number of investment programmes, in order to channel the funding to the different regions and policy areas. To get access to CF, a promoter of a building/district renovation project will have to follow the application procedures of the relevant managing authority. Some have an ongoing procedure, others accept applications at certain times only. It is recommended to visit the website of the EC in order to better understand how the funds are accessed: https://ec.europa.eu/regional_policy/funding/accessing-funds_en. What can financing be used for? In the case of renovation of social and affordable housing, social housing providers can often apply directly for funding or benefit from grants funded by cohesion funding, such as for energy renovations. The different funds are the following: - The European Regional Development Fund (ERDF) will support investments in all 5 policy objectives, but PO1 and PO2 are the main priorities. - The European Social Fund Plus (ESF+) main priority is PO4. - The Cohesion Fund (CF) supports policy objectives PO2 and PO3. - The Just Transition Fund (JTF) provides support under dedicated specific objectives (art. 8 of JTF regulation, essentially PO2). Other interesting aspects? Organizations that can benefit from regional funding include public bodies, some private sector organizations (especially small businesses), universities, associations, NGOs and voluntary organizations. Foreign firms with a base in the region covered by the relevant operational programme can also apply, provided they meet European public procurement rules. Other interesting aspects? Organizations that can benefit from regional funding include public bodies, some private sector organizations (especially small businesses), universities, associations, NGOs and voluntary organizations. Foreign firms with a base in the region covered by the relevant operational programme can also apply, provided they meet European public procurement rules. Link(s) https://www.fi-compass.eu/funds/erdf https://ec.europa.eu/regional_policy/funding/accessing-funds_enExample 2 Financing instrument Guarantee Who provides the financing and through which entity? The EIB guarantees to unlock additional financing for small- and medium-sized enterprises or mid-caps by covering a portion of possible losses from a portfolio of loans. A guarantee, in this context, means that the EIB agrees to cover a portion of potential losses that may arise from a portfolio of loans. How much is the investment? EIB provides subordinated financing, funded or unfunded guarantees and contingent credit lines designed to enhance the credit quality/credit rating of the senior debt. By offering these guarantees, the EIB helps reduce the risk for lenders, making it more attractive for them to provide financing to borrowers and improve financial conditions for borrowers. What can financing be used for? The EIB can cover practically all financing needs of social and affordable housing renovations and related infrastructures, such as district heating/cooling networks. This includes projects of all sizes, from large to small, such as the renovation of an individual house. Link(s) https://www.eib.org/en/products/guarantees/index.htmPrivate entities - District level - Less than 5m - Europe Example 1 Financing instrument Guarantee Who provides the financing and through which entity? The EIB guarantees to unlock additional financing for small- and medium-sized enterprises or mid-caps by covering a portion of possible losses from a portfolio of loans. A guarantee, in this context, means that the EIB agrees to cover a portion of potential losses that may arise from a portfolio of loans. How much is the investment? EIB provides subordinated financing, funded or unfunded guarantees and contingent credit lines designed to enhance the credit quality/credit rating of the senior debt. By offering these guarantees, the EIB helps reduce the risk for lenders, making it more attractive for them to provide financing to borrowers and improve financial conditions for borrowers. What can financing be used for? The EIB can cover practically all financing needs of social and affordable housing renovations and related infrastructures, such as district heating/cooling networks. This includes projects of all sizes, from large to small, such as the renovation of an individual house. Link(s) https://www.eib.org/en/products/guarantees/index.htmExample 2 Financing instrument Combination of different financing instruments Who provides the financing? JESSICA stands for Joint European Support for Sustainable Investment in City Areas. This initiative is being developed by the European Commission and the European Investment Bank (EIB), in collaboration with the Council of Europe Development Bank (CEB). Member States are being given the option of using some of their EU cohesion funding, to make repayable investments in projects forming part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds (UDFs) and, if required, Holding Funds. What can financing be used for? Jessica has supported energy efficiency improvements in buildings. Link(s) https://www.eib.org/en/publications/jessicaExample 3 Financing instrument Combination of different financing instruments Who provides the financing? JESSICA stands for Joint European Support for Sustainable Investment in City Areas. This initiative is being developed by the European Commission and the European Investment Bank (EIB), in collaboration with the Council of Europe Development Bank (CEB). Member States are being given the option of using some of their EU cohesion funding, to make repayable investments in projects forming part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds (UDFs) and, if required, Holding Funds. What can financing be used for? Jessica has supported energy efficiency improvements in buildings. Link(s) https://www.eib.org/en/publications/jessicaExample 3 Financing instrument Loans Who provides the financing and through which entity? To address the limited access to adequate and affordable financing for energy efficiency investments, the European Investment Bank (EIB) and the European Commission (LIFE programme) have jointly developed the Private Finance for Energy Efficiency (PF4EE) instrument. PF4EE operates through private and public sector partner banks that use the instrument to offer preferential energy efficiency financing in their national markets. Each PF4EE partner bank benefits from the instrument’s two key components – the Risk Sharing Facility and the Expert Support Facility – which may be combined with an EIB loan. What can financing be used for? All investment costs incurred in order to generate energy savings (or to produce energy in case of small renewables) are eligible for financing through a PF4EE loan. Energy efficiency in existing buildings and related infrastructures, such as district heating/cooling networks are eligible for the facility, among other EE investments. Access to the funding is through partner banks that got the support of the facility. See the list of partner banks at https://pf4ee.eib.org/partner-banks. How much is the investment? The projects shall be located in the PF4EE participating countries and have a capital cost below EUR 10 million. The loan is provided at a competitive rate, and with a maximum maturity of 25 years to finance up to 75% of the capital costs of eligible investments. Normally loans are less than 5 million. Link(s) https://pf4ee.eib.org/Private entities - Service infrastructure - Less than 5m - Europe Example 1 Financing instrument Loans Who provides the financing and through which entity? To address the limited access to adequate and affordable financing for energy efficiency investments, the European Investment Bank (EIB) and the European Commission (LIFE programme) have jointly developed the Private Finance for Energy Efficiency (PF4EE) instrument. PF4EE operates through private and public sector partner banks that use the instrument to offer preferential energy efficiency financing in their national markets. Each PF4EE partner bank benefits from the instrument’s two key components – the Risk Sharing Facility and the Expert Support Facility – which may be combined with an EIB loan. What can financing be used for? All investment costs incurred in order to generate energy savings (or to produce energy in case of small renewables) are eligible for financing through a PF4EE loan. Energy efficiency in existing buildings and related infrastructures, such as district heating/cooling networks are eligible for the facility, among other EE investments. Access to the funding is through partner banks that got the support of the facility. See the list of partner banks at https://pf4ee.eib.org/partner-banks. How much is the investment? The projects shall be located in the PF4EE participating countries and have a capital cost below EUR 10 million. The loan is provided at a competitive rate, and with a maximum maturity of 25 years to finance up to 75% of the capital costs of eligible investments. Normally loans are less than 5 million. Link(s) https://pf4ee.eib.org/Example 2 Financing instrument Loans Who provides the financing and through which entity? To address the limited access to adequate and affordable financing for energy efficiency investments, the European Investment Bank (EIB) and the European Commission (LIFE programme) have jointly developed the Private Finance for Energy Efficiency (PF4EE) instrument. PF4EE operates through private and public sector partner banks that use the instrument to offer preferential energy efficiency financing in their national markets. Each PF4EE partner bank benefits from the instrument’s two key components – the Risk Sharing Facility and the Expert Support Facility – which may be combined with an EIB loan. What can financing be used for? All investment costs incurred in order to generate energy savings (or to produce energy in case of small renewables) are eligible for financing through a PF4EE loan. Energy efficiency in existing buildings and related infrastructures, such as district heating/cooling networks are eligible for the facility, among other EE investments. Access to the funding is through partner banks that got the support of the facility. See the list of partner banks athttps://pf4ee.eib.org/partner-banks. How much is the investment? The projects shall be located in the PF4EE participating countries and have a capital cost below EUR 10 million. The loan is provided at a competitive rate, and with a maximum maturity of 25 years to finance up to 75% of the capital costs of eligible investments. Normally loans are less than 5 million. Link(s) https://pf4ee.eib.org/Example 3 Financing instrument Loans Who provides the financing and through which entity? The EIB Group provides financing based on its own capital, provided by the EU Member States and has received capital from the EU Commission to develop certain financing activities or to provide technical assistance. What can financing be used for? Concerning energy efficiency investments in existing buildings, all capital expenditures related to energy efficiency improvements to the building envelope and building systems are eligible for EIB financing. The expected energy savings can be estimated through an energy audit, a comparison between the energy performance certificate before and after the works, or any other transparent and proportionate method acceptable to the EIB. How much is the investment? EIB financing terms match the economic life of each project – which can sometimes exceed 30 years. EIB typically covers up to 50% of a project’s total cost with loans starting at €25 million and even lower amounts in some cases. However, for energy efficiency investments, it can go up to 75% of the eligible portfolio capital cost. • Individual loans for the public sector (starting at €25 million) to finance a single large investment project or investment programme. • Framework loans for the public sector: Flexible loans to finance an investment programme consisting of smaller projects. Link(s) https://www.eib.org/attachments/thematic/social_and_affordable_housing_en.pdfExample 4 Financing instrument Loans Who provides the financing and through which entity? The EIB Group provides financing based on its own capital, provided by the EU Member States and has received capital from the EU Commission to develop certain financing activities or to provide technical assistance. What can financing be used for? Concerning energy efficiency investments in existing buildings, all capital expenditures related to energy efficiency improvements to the building envelope and building systems are eligible for EIB financing. The expected energy savings can be estimated through an energy audit, a comparison between the energy performance certificate before and after the works, or any other transparent and proportionate method acceptable to the EIB. How much is the investment? EIB financing terms match the economic life of each project – which can sometimes exceed 30 years. EIB typically covers up to 50% of a project’s total cost with loans starting at €25 million and even lower amounts in some cases. However, for energy efficiency investments, it can go up to 75% of the eligible portfolio capital cost. • Individual loans for the public sector (starting at €25 million) to finance a single large investment project or investment programme. • Framework loans for the public sector: Flexible loans to finance an investment programme consisting of smaller projects. Link(s) https://www.eib.org/attachments/thematic/social_and_affordable_housing_en.pdfPrivate entities - District level - 1m-10m - Europe Financing instrument Grants Who provides the financing and through which entity? The LIFE Programme is the EU’s funding instrument for the environment and climate action. What can financing be used for? The programme supports demonstration, best practices, coordination and support actions, capacity building, and governance projects. For instance, on the objective of the clean energy transition, 7 projects will set up 16 new one-stop shops facilitating energy renovation for thousands of homeowners across five EU countries: - Three projects will help households to reduce their energy bills through energy renovation for vulnerable districts and tailor-made renovation roadmaps in southern and Eastern Europe. - Six projects will boost energy communities at local and regional levels to invest in the energy transition. They will also engage in energy efficiency and renewable energy generation projects, including community heating and cooling across Europe. Link(s) https://commission.europa.eu/funding-tenders/find-funding/eu-funding-programmes/programme-environment-and-climate-action-life_enPrivate entities - Service infrastructure - 1m-10m - Europe Example 1 Financing instrument Grants Who provides the financing and through which entity? The LIFE Programme is the EU’s funding instrument for the environment and climate action. What can financing be used for? The programme supports demonstration, best practices, coordination and support actions, capacity building, and governance projects. For instance, on the objective of the clean energy transition, 7 projects will set up 16 new one-stop shops facilitating energy renovation for thousands of homeowners across five EU countries: - Three projects will help households to reduce their energy bills through energy renovation for vulnerable districts and tailor-made renovation roadmaps in southern and Eastern Europe. - Six projects will boost energy communities at local and regional levels to invest in the energy transition. They will also engage in energy efficiency and renewable energy generation projects, including community heating and cooling across Europe. Link(s) https://commission.europa.eu/funding-tenders/find-funding/eu-funding-programmes/programme-environment-and-climate-action-life_enExample 4 Financing instrument Project Finance Who provides the financing and through which entity? Project Finance, particularly in the context of energy renovation projects, involves a structured financial arrangement tailored to mitigate risks and attract investment. Typically, a Special Purpose Vehicle (SPV) is established for such endeavours. The SPV operates as a separate legal entity, allowing for a non-recourse or limited recourse financing approach. This means that the financial liability of project investors is restricted to the assets and cash flows of the SPV, insulating them from potential losses beyond their initial investment. In the realm of these projects, the SPV is responsible for aggregating and managing the project's financial resources, assets, and cash flows independently from the originating company. The SPV is often constituted by project stakeholders, including investors, lenders, and developers, who collectively capitalize on and control the entity. What can financing be used for? In energy renovation Project Finance, the creation of an SPV serves several purposes. Firstly, it helps isolate the project from the financial obligations of the parent company, enhancing risk management. Secondly, the non-recourse or limited recourse nature of the financing encourages external investors by assuring them that their liability is tied to the project's performance rather than the overall financial health of the parent company. This structure aligns incentives for project success and safeguards investors against unforeseen challenges, fostering a more attractive investment environment for energy renovation initiatives. In recent years, within the context of social and affordable housing renovations, major promoters such as public authorities, social housing associations, and private companies have identified Project Finance and the establishment of SPVs as new financial avenues to successfully undertake their projects. While restrictive regulations for public administrations in some countries have significantly constrained the use of these financial schemes and the creation of SPVs, there are several successful cases prompting consideration throughout the European Union. Despite the predominant focus on improving and renovating heating and cooling networks and installing PV panels at the district level, these cases serve as inspiration and are being studied for their comprehensive application in the energy renovation of social and affordable housing. A good example of a PPP and Project Finance is the case of MES Barcelona. Link(s) https://media.iese.edu/research/pdfs/ST-0645-EExample 2 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The NextGenerationEU is a temporary instrument that was set up in 2020 to address the socio-economic impacts of the COVID-19 pandemic on Member States through the Recovery and Resilience Facility for the 2021-2027 period. How much is the investment? The funding of the NextGenerationEU through the Recovery and Resilience Facility is €338.0 billion in grants. What can financing be used for? The funds under the Recovery and Resilience Facility (RRF) are being distributed according to national recovery and resilience plans prepared by each Member State, in cooperation with the European Commission, and in line with an agreed allocation key. Objectives and project eligibility criteria for the RRF are indicated in each National Recovery and Resilience Plan, but, in general terms, are similar to the general EU policy’s objectives. All types of projects that minimize the carbon footprint, such as renewable energy buildings and energy production facilities, are eligible. Other interesting aspects? For specific information about how the recovery plans have been deployed in each EU country the report on the impact of the recovery plans on the social housing and affordable housing sector done by Housing Europe can be consulted at the following link: https://www.housingeurope.eu/resource-1635/impact-of-the-recovery-plans-on-the-social-and-affordable-housing-sector. Link(s) https://commission.europa.eu/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.htmlExample 5 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The NextGenerationEU is a temporary instrument that was set up in 2020 to address the socio-economic impacts of the COVID-19 pandemic on Member States through the Recovery and Resilience Facility for the 2021-2027 period. How much is the investment? The funding of the NextGenerationEU through the Recovery and Resilience Facility is €338.0 billion in grants. What can financing be used for? The funds under the Recovery and Resilience Facility (RRF) are being distributed according to national recovery and resilience plans prepared by each Member State, in cooperation with the European Commission, and in line with an agreed allocation key. Objectives and project eligibility criteria for the RRF are indicated in each National Recovery and Resilience Plan, but, in general terms, are similar to the general EU policy’s objectives. All types of projects that minimize the carbon footprint, such as renewable energy buildings and energy production facilities, are eligible. Other interesting aspects? For specific information about how the recovery plans have been deployed in each EU country the report on the impact of the recovery plans on the social housing and affordable housing sector done by Housing Europe can be consulted at the following link: https://www.housingeurope.eu/resource-1635/impact-of-the-recovery-plans-on-the-social-and-affordable-housing-sector. Link(s) https://commission.europa.eu/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.htmlExample 5 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The NextGenerationEU is a temporary instrument that was set up in 2020 to address the socio-economic impacts of the COVID-19 pandemic on Member States through the Recovery and Resilience Facility for the 2021-2027 period. How much is the investment? The funding of the NextGenerationEU through the Recovery and Resilience Facility is €338.0 billion in grants. What can financing be used for? The funds under the Recovery and Resilience Facility (RRF) are being distributed according to national recovery and resilience plans prepared by each Member State, in cooperation with the European Commission, and in line with an agreed allocation key. Objectives and project eligibility criteria for the RRF are indicated in each National Recovery and Resilience Plan, but, in general terms, are similar to the general EU policy’s objectives. All types of projects that minimize the carbon footprint, such as renewable energy buildings and energy production facilities, are eligible. Other interesting aspects? For specific information about how the recovery plans have been deployed in each EU country the report on the impact of the recovery plans on the social housing and affordable housing sector done by Housing Europe can be consulted at the following link: https://www.housingeurope.eu/resource-1635/impact-of-the-recovery-plans-on-the-social-and-affordable-housing-sector. Link(s) https://commission.europa.eu/funding-tenders/find-funding/financial-instruments-equity-guarantees-and-loans_en#funding-under-nextgenerationeu https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.htmlExample 2 Financing instrument Grants Who provides the financing and through which entity? Modernisation Fund (MF) aims at accelerating the transition to climate neutrality – aligning with the goals outlined in the ETS Directive, along with the objectives of the Union's 2030 climate and energy policy framework, as well as the long-term goals stated in the Paris Agreement –. Ten Member States can benefit from this fund: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia. There are a number of key steps in the financial process that all of these countries must take into account. How much is the investment? The MF provides these countries with direct funds to invest in a project that meets specific criteria. To ensure the commercial viability of investments and their contribution to the 2030 climate targets, investment proposals must include mature technologies. In essence, the proposed technologies should have been successfully implemented and proven effective in operational settings with comparable conditions, scale, and reliable references. What can financing be used for? Seventy percent of the funds must be invested in these specific areas. Investments in these areas are referred to as "priority investments": • generation and use of electricity from renewable sources; • improvement of energy efficiency (including in transport, buildings, agriculture, waste, and except in energy efficiency related to energy generation using solid fossil fuels); • energy storage; • modernisation of energy networks (including district heating pipelines, grids for electricity transmission, and increase of interconnections among Member States); and • support to a just transition in carbon-dependent regions in the beneficiary Member States (including support to the redeployment, re-skilling and up-skilling of workers, education, job-seeking initiatives and start-ups, in dialogue with social partners). Other interesting aspects? Investments that meet the requirements for the Modernisation Fund but do not fall within the designated priority areas are categorized as "non-priority investments”. For such investments, the Modernisation Fund can provide financial coverage for up to 70% of the associated costs, with the condition that the remaining costs are covered by private funding sources. Link(s) https://modernisationfund.eu/Example 3 Financing instrument Grants Who provides the financing and through which entity? Modernisation Fund (MF) aims at accelerating the transition to climate neutrality – aligning with the goals outlined in the ETS Directive, along with the objectives of the Union's 2030 climate and energy policy framework, as well as the long-term goals stated in the Paris Agreement –. Ten Member States can benefit from this fund: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia. There are a number of key steps in the financial process that all of these countries must take into account. How much is the investment? The MF provides these countries with direct funds to invest in a project that meets specific criteria. To ensure the commercial viability of investments and their contribution to the 2030 climate targets, investment proposals must include mature technologies. In essence, the proposed technologies should have been successfully implemented and proven effective in operational settings with comparable conditions, scale, and reliable references. What can financing be used for? Seventy percent of the funds must be invested in these specific areas. Investments in these areas are referred to as "priority investments": • generation and use of electricity from renewable sources; • improvement of energy efficiency (including in transport, buildings, agriculture, waste, and except in energy efficiency related to energy generation using solid fossil fuels); • energy storage; • modernisation of energy networks (including district heating pipelines, grids for electricity transmission, and increase of interconnections among Member States); and • support to a just transition in carbon-dependent regions in the beneficiary Member States (including support to the redeployment, re-skilling and up-skilling of workers, education, job-seeking initiatives and start-ups, in dialogue with social partners). Other interesting aspects? Investments that meet the requirements for the Modernisation Fund but do not fall within the designated priority areas are categorized as "non-priority investments”. For such investments, the Modernisation Fund can provide financial coverage for up to 70% of the associated costs, with the condition that the remaining costs are covered by private funding sources. Link(s) https://modernisationfund.eu/Example 6 Financing instrument Grants Who provides the financing and through which entity? The Innovation Fund focuses on highly innovative technologies and flagship projects within Europe that can bring about significant emission reductions. It covers all EU countries, plus Norway, Lichtenstein and Iceland. How much is the investment? The funds are financed by revenues from the actions of allowances under the EU Emissions Trading System (ETS). Therefore, the Innovation Fund’s total funding depends on the carbon price, and it may amount to about €40 billion from 2020 to 2030, calculated by using a carbon price of €75/tCO2. The Innovation Fund provides financial support for project costs, with different grant funding percentages. Normally up to 60% of the relevant costs or in some cases up to 100%. The disbursement of grants is flexible and tailored to meet the financing needs of the project. Funding is allocated based on achieved milestones throughout the project's lifespan. Innovation Fund grants can be combined with funding from other support programmes, such as Horizon Europe, InvestEU, Modernisation Funds, Just Transition Fund and others. What can financing be used for? For projects to qualify for funding, they must demonstrate sufficient maturity in terms of planning, business model, and the establishment of robust financial and legal structures. This ensures that selected initiatives have reached a stage where they possess a solid foundation for successful implementation. Objectives and eligible projects of the Innovation Fund. The fund focuses on highly innovative technologies in the following categories: • Renewable energy. • Energy storage. • Carbon Capture and Storage. • Carbon Capture and Utilisation. • Cross-cutting (any combination of the above activities). Other interesting aspects? The projects are selected through competitive bidding. The specific details of the bidding are defined in each individual call for proposals. During the entirety of the Innovation Fund's duration, which spans from 2020 to 2030, periodic calls for project proposals will be conducted. These calls provide opportunities for project promoters to submit their proposals and seek funding for their innovative initiatives. To apply for the Innovation Fund, project promoters are required to submit their proposals through the EU Funding and Tenders portal. Link(s) https://research-and-innovation.ec.europa.eu/funding/funding-opportunities/funding-programmes-and-open-calls/horizon-europe_enExample 2 Financing instrument Crowdfunding Who provides the financing and through which entity? Crowdfunding, is a financing method that involves raising small amounts of money from a large number of people, typically through online platforms or websites. Crowdfunding methods often follow various approaches based on the project's intended objectives. In equity crowdfunding, for instance, contributors—often investors—receive a stake or equity in the project or business in exchange for their financial support. In this arrangement, backers become shareholders and hold a potential financial interest in the success of the venture. Conversely, crowdfunding can take other alternative approaches, such as providing small investors with discounts on project services or offering contributors a way to align their interests with ESG criteria or personal concerns. What can financing be used for? To fund renewable energy projects that could be used to fund energy renovations. Other interesting aspects? One of the biggest hurdles faced by crowdfunding platforms is their reach-out capacity and the amount of investment that can be obtained through them. Also, in the past, it was difficult for platforms to offer their services across borders. This has in the past resulted in high compliance and operational costs, which prevented crowdfunding platforms from efficiently scaling. In 2020, the EU passed the Regulation on European Crowdfunding Service Providers (ECSP) for businesses aiming at resolving this issue. The regulation lays down uniform rules across the EU for crowdfunding services. Investors will benefit from mandatory disclosures from project owners and platform managers regarding governance and risk management. Link(s) https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/financial-markets/crowdfunding_en https://www.respira.coop/Example 6 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The InvestEU Programme is a follow-up of the Investment Plan for Europe. The EIB Group will implement 75% of the InvestEU and the same share of the advisory budget under the InvestEU Advisory Hub. Further to the EIB and EIF, who are the main implementing partners, international financial institutions active in Europe and national promotional banks –such as the CEB – will be able to use a share of the guarantee (25% in total) to support investment and projects schemes. How much is the investment? With the aim of triggering a new wave –more than €372 billion– in investments using an EU budget guarantee. It integrates into a single fund several previous initiatives. What can financing be used for? The same type of financing as for the EIB but can take higher credit risk than normal EIB financing. It aims at supporting EU policy objectives in the period 2021-27: Services infrastructures, social housing and energy renovations of buildings are eligible to InvestEU. Other interesting aspects? The InvestEU Programme includes the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. Link(s) https://investeu.europa.eu/about-investeu_enExample 7 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The InvestEU Programme is a follow-up of the Investment Plan for Europe. The EIB Group will implement 75% of the InvestEU and the same share of the advisory budget under the InvestEU Advisory Hub. Further to the EIB and EIF, who are the main implementing partners, international financial institutions active in Europe and national promotional banks –such as the CEB – will be able to use a share of the guarantee (25% in total) to support investment and projects schemes. How much is the investment? With the aim of triggering a new wave –more than €372 billion– in investments using an EU budget guarantee. It integrates into a single fund several previous initiatives. What can financing be used for? The same type of financing as for the EIB but can take higher credit risk than normal EIB financing. It aims at supporting EU policy objectives in the period 2021-27: Services infrastructures, social housing and energy renovations of buildings are eligible to InvestEU. Other interesting aspects? The InvestEU Programme includes the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. Link(s) https://investeu.europa.eu/about-investeu_enExample 8 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The European Energy Efficiency Fund (EEEF), financed by the EU Commission and other financial entities, contributes to enhancing energy efficiency and fostering renewable energy in the form of a targeted private–public partnership, primarily through the provision of direct financing of projects and partnering with financial institutions. The final beneficiaries of EEEF are municipal, local and regional authorities as well as public and private entities acting on behalf of those authorities. How much is the investment? Funds to support financial institutions: The EEEF provides to partner financial institutions senior and subordinated debt, guarantees and risk sharing. What can financing be used for? The fund can finance public and private buildings incorporating renewable energy and/or energy efficiency solutions, as well as other related energy of digital infrastructures. Therefore, it can finance the energy renovations of residential buildings. Link(s) https://www.eeef.lu/home.htmlExample 7 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The EEEF, financed by the EU Commission and other financial entities, contributes to enhancing energy efficiency and fostering renewable energy in the form of a targeted private–public partnership, primarily through the provision of direct financing of projects and partnering with financial institutions. The final beneficiaries of EEEF are municipal, local and regional authorities as well as public and private entities acting on behalf of those authorities. How much is the investment? Funds to support financial institutions: The EEEF provides to partner financial institutions senior and subordinated debt, guarantees and risk sharing. What can financing be used for? The fund can finance Public and private buildings incorporating renewable energy and/or energy efficiency solutions, as well as other related energy of digital infrastructures. Therefore, it can finance the energy renovations of residential buildings. Link(s) https://www.eeef.lu/home.htmlExample 3 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The EEEF, financed by the EU Commission and other financial entities, contributes to enhancing energy efficiency and fostering renewable energy in the form of a targeted private–public partnership, primarily through the provision of direct financing of projects and partnering with financial institutions. The final beneficiaries of EEEF are municipal, local and regional authorities as well as public and private entities acting on behalf of those authorities. How much is the investment? Funds to support financial institutions: The EEEF provides to partner financial institutions senior and subordinated debt, guarantees and risk sharing. What can financing be used for? The fund can finance Public and private buildings incorporating renewable energy and/or energy efficiency solutions, as well as other related energy of digital infrastructures. Therefore, it can finance the energy renovations of residential buildings. Link(s) https://www.eeef.lu/home.htmlPrivate entities - Multi-residential building - 1m-10m - France Financing instrument Loans Who provides the financing and through which entity? The major funding solution of energy renovation for social housing is low-interest loans (68% in 2015 ). The Banque des Territoires (French Territorial Bank) is the main partner of social housing organisations for renovations. It is a department of the Caisse des dépôts for developing loans, investment advice and financing solutions to meet the needs of local authorities, social housing organisations and local public companies. It collects funds from the regulated savings fund mechanism called Livret A, which is accessible to all French people, to provide two main loans: a. The Eco loan (Eco-PLS) b. Renovation advance loan, that can also get loans from private banks. To access the Eco-PLS loan, a step-by-step approach is outlined on the official Service-Public.fr website. The platform provides information on the three types of renovation works: One-off renovation, Comprehensive renovation, and Sanitation. Additionally, it details the maximum amount of the eco-PTZ available based on the nature of the works Link(s) https://www.banquedesterritoires.fr/Private entities - Service infrastructure - 1m-100m - France Financing instrument Equity Financing Who provides the financing and through which entity? Biomass plant to supply heat to buildings in the city of Rennes. The European Energy Efficiency Fund has made an investment in Rennes Biomass Energie, a company that has received authorization to operate a combined heat and power facility for the next 20 years. How much is the investment? The investment was made through the acquisition of 85% of the shares of Rennes Biomasse Energie by the eeef. Dalkia France is also co-investing in the project and holds the remaining 15% of shares in Rennes Biomasse Energie. What can financing be used for? In addition to the equity investment, the responsibility for maintaining the infrastructure, including the biomass source, lies with the project partners. The biomass will be sourced from local suppliers. The generated thermal heat will be utilized to supply the district heating network of the City of Rennes, located in the North-West of France. The electricity produced by the facility will be sold to EDF through a 20-year contractual agreement. Other interesting aspects? This project is estimated to result in an annual reduction of 37,063 tons of CO2 emissions. The green heat produced by the plant will benefit approximately 21,000 households in the area. Link(s) https://www.eeef.lu/news-detail/rennes-biomass-plant-in-france-enters-eeefs-project-portfolio-as-the-second-equity-investment.htmlPrivate entities - Service infrastructure - 1m-10m - Portugal Financing instrument Crowdfunding Who provides the financing and through which entity? The platform GOPARITY in Portugal is a great example of a successful crowdfund funding scheme. In 2019. How much is the investment? An energy production project in the city of Castelões raised €67k to finance the installation of PV energy production. What was financed? The funds raised through this campaign have been used to finance a project in a small town in the North of Portugal. A total of 86,2 kWp (kilowatt ‘peak’) has been installed. This community is one of the three plants to be installed in the parish of Calvão. The promoter of the project is an organisation called Cleanwatts. The mission of this project is to fight energy poverty by creating renewable energy communities that produce their electricity and promote energy-efficiency practices. Members will get a price 25% lower than the price of the national grid during sunny hours. Link(s) https://goparity.comPrivate entities - District level - More than 100m - Spain Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The EIB has financed investments in new and renovation of existing social housing and affordable housing in Spain, using the guarantee from the EFSI, the predecessor of InvestEU (https://www.eib.org/en/projects/pipelines/all/20170769). The EIB financing will improve funding terms compared to market sources of financing, help to attract private financers and provide advice in view of optimising the financing package. The operation consists of an investment platform developed in cooperation with the Instituto de Crédito Oficial (ICO), the Spanish National Promotional Bank, to support promoters (both public and private companies) operating in the social and affordable housing sector. What can financing be used for? Investments under this operation will mainly include new constructions and rehabilitations, energy efficiency improvements and accessibility measures in social and affordable housing. How much is the investment? The EIB loan amounts to approximately €300 million to finance an investment cost of €600 million. For example, the vehicle will provide financing for the construction of social and affordable housing in Seville and Málaga. Link(s) https://www.ico.esPrivate entities - Multi-residential building - Less than 1m - Spain Example 1 Financing instrument Project Finance Who provides the financing and through which entity? MES Barcelona (Barcelona Sustainable Energy Mechanism) program, conceived and designed by the 2030 Agenda Office of the Barcelona City Council, exemplifies the determination of public administrations to join the private sector in the search for solutions to these energy challenges. MES Barcelona is a public-private partnership project that uses the tool of co-investment by public and private actors, with the specific objective of facilitating the energy transition and long-term sustainable energy savings by promoting self-consumption of electricity, in households as well as in companies and public facilities, through the use of photovoltaic collectors that harness solar energy. At present, the program is at an early stage, in which there are still areas to be defined and room for learning and improvement by all of the actors involved. What can financing be used for? An essential feature of MES Barcelona is that the returns it generates must be not only financial, but above all environmental and social. The project includes various schemes for co-investment by private and/or public entities, as well as other forms of investment. The most prominent example of a co-investment scheme is the creation of an SPV (special purpose vehicle) in which the city of Barcelona will be able to acquire a 30% stake. By February 2023, the City Council had reached agreements with five approved investors to set up nine joint SPVs: - Six SPVs are for public, industrial and service buildings (€57.52 million of investment). - Three SPVs are for the residential market (€18.10 million of investment). Together, these SPVs would represent an installed capacity of 87,23 MWp, for which the City Council will only have to invest €11.07 million (22,15% of the planned investment of €50 million). The total investment will be €7.56 million, provided by the City Council (14,65%), approved investors (34,48%) and through SPV leverage financing (50,8%). In terms of ESG impact indicators, these projects would deliver the following results: - Global warming: reduction of 28,618 tons per year of CO₂. - Health: reduction of 70,351 kg of PM10 per year. - Social benefit: €5,730,410 per year in avoided social costs. - Economy: 349 jobs created. The number of requests for information about the project (leads) has already reached 1,500 for buildings, the vast majority of which are residential. Information has been requested from 750 leads, and concrete proposals have been presented to over 100. Link(s) https://media.iese.edu/research/pdfs/ST-0645-EPrivate entities - District level - 1m-100m - Switzerland Financing instrument Bonds Who provides the financing and through which entity? ABZ residential building bonds. The net proceeds of the Sustainability Bond issued by ABZ will be used exclusively for the financing and refinancing of the construction or ownership of ABZ housing cooperative properties in Switzerland that are environmentally friendly. This will enable the construction of more than 700 non-profit apartments in the Zurich area to be financed in part or in full. What can financing be used for? The financed buildings must meet certain criteria. That is, they have to be part of the ABZ residential building stock, meet specified energy standards and environmental guidelines, use renewable energy sources and be in Switzerland as a business location. ABZ publishes annual reports and an extended sustainability report. ABZ will also publish a report on each bond issued under this framework until the maturity of the last bond issued. The report includes the allocation of the proceeds of the issue (in %), the volume of the issue, the number of cooperative housing units financed by the bond, the number of financed apartments rented, the energy standards met by the buildings and the energy sources used and the emissions per inhabitant in tons CO2 equivalent caused by heat generation. Link(s) https://www.eeef.lu/home.htmlPrivate entities - District level - Less than 5m - Belgium Financing instrument Combination of different financing instruments Who provides the financing and through which entity? EDF Luminus Solutions (third-party investor and service provider) and Anderlechtse Haard (one of the largest social housing companies of the Brussels Capital Region) signed an Energy Performance Contract to improve the energy efficiency of Anderlechtse Haard’s social housing. What can financing be used for? The following measures have been implemented: - 15 new Building Management Systems; - 7 PV systems with 168 solar panels; - 7 cogeneration units; - 31 new boilers. In addition, EDF Luminus Solutions is providing maintenance/reparation services and offering technical installations. How much is the investment? The project is financed through the Belfius Energy Efficiency Package (BEEP). The project obtained a loan of €3.75 million (93% of CAPEX) at a preferential rate through the PF4EE mechanism, which included the risk-sharing facility, achieving an annual primary energy savings of 5,324,000 kWh Link(s) https://pf4ee.eib.org/sites/default/files/2019-06/PF4EE-ESF_OCT2018_Showcase%20Belfius%20EDF%20Luminus.pdfPrivate entities - Multi-residential building - Less than 5m - The Netherlands Example 1 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? In 2014, BNG Bank developed an ESG issuance framework in cooperation with PON-Telos. Under this framework, the most sustainable municipalities and social housing associations were selected. The loans provided to these “best-in-class” performing core clients were consecutively funded with proceeds from the ESG bonds which the bank issued. This framework was successfully deployed until 2020. The launch of the UN SDGs, as well as the launch of BNG’s Road to Impact strategy- provided a logical backdrop to modernize the framework in 2021. As a result, the BNG Sustainable Finance Framework was launched in that year. It is under this ESG framework that BNG Bank has issued ESG bonds for Dutch municipalities and social housing associations since 2021. What can financing be used for? For energy renovation of social housing. The Sustainable Finance Framework follows the four key pillars of the ICMA Green Bond Principles (GBP) and Social Bond Principles (SBP), and of the LMA Green Loan Principles (GLP): Use of Proceeds, Process for Project Evaluation and Selection, Management of Proceeds and Reporting. Given this structure, the framework is divided in two subframeworks that each focus on a different client group in terms of use of proceeds: - Sub-framework I for loans to Dutch municipalities. - Sub-framework II for loans to Dutch social housing associations. To access loans and financial products from BNG Bank through ESG Bonds, you must be either a municipality or a social housing association in the Netherlands. Link(s) https://www.bngbank.com/Example 2 Financing instrument Combination of different financing instruments Who provides the financing and through which entity? Social housing organisations can benefit from a sectoral guarantee fund called the Guarantee Fund for Social Housing (WSW), which is a private organisation created by the social housing associations themselves, in order to facilitate their financing. In addition, the WSW has an agreement with the State, which allows it to access state funds that would cover housing associations' defaults in certain cases. Therefore, the WSW offers a solid structure that allows social landlords to obtain financing on favourable terms. This guarantee facilitates the mobilization of private capital from financial institutions, particularly in terms of loans. What can financing be used for? For energy renovation of social housing. The conditions for loan guarantees provided by WSW are as follows: - Participant Eligibility: WSW guarantees loans exclusively for housing associations registered as participants. The guarantee is limited to financing social rental housing and Services of General Economic Interest (SGEI). - Backstop Agreements with Municipalities: The participant's municipality, where SGEI registered property is owned, must have a current back-up agreement with WSW. If it's a limited backstop agreement, the loan must adhere to specified limits. - Financial Institution Requirements: Participants are allowed to engage in transactions only with financial institutions that meet the criteria outlined in the Housing Act, article 21c. - Standard Loan Documentation: The loans eligible for guarantees must adhere to 'plain vanilla' principles, emphasizing simplicity, clarity, and transparency. Additionally, approved standard loan documentation must be used. Link(s) https://www.wsw.nl/corporaties/borgingproces/aanvragen-en-verkrijgen-van-borging-na-1-augustusPrivate entities - District level - 1m-100m - The Netherlands Financing instrument Equity Financing Who provides the financing and through which entity? The EIB has funded an equity investment vehicle that will build a diversified portfolio of district heating networks in various Dutch municipalities. The EIB as a long-term lending institution provides finance for economically viable projects that are aligned with its policy goals , primarily investing or co-investing along with certain funds. In some cases, the Bank also provides direct quasi-equity financing to support innovative companies in seek of financing to grow. How much is the investment? EIB has signed €30 million agreement with Asper Investment Management for its Dorothea investment vehicle, which will acquire and build at least four district heating projects in the Netherlands(see https://www.eib.org/en/press/all/2020-269-eu-support-for-dutch-district-heating-project). What can financing be used for? Equity and risk capital to develop new district heating/cooling networks is in very limited supply, taking into account the high risk involved in particular in the initial phase of developing such networks. Other interesting aspects? Dorothea will support new and existing district heating projects in various municipalities, starting with the heating network of Ede. The financing is supported under the European Fund for Strategic Investments, the main component of the European Commission’s Investment Plan for Europe. Link(s) https://www.eeef.lu/home.htmlExample 2 Financing instrument Combination of different financing instruments Who provided the financing and through which entity? The Solidarity Fund for Energy Rehabilitation by the Naturgy Foundation does not provide any specific financing contribution, but it is focused on assisting in the rehabilitation of social housing and vulnerable family homes. The Fund is constituted with the contributions made by the Naturgy Foundation. In addition, monetary or in-kind contributions can be made by collaborating entities and companies. What can financing be used for? Founded in 2018, it already has more than 3,000 express rehabilitations, related to wall and ceiling insulation, damp issues, carpentry, boiler repair or replacement, and appliance upgrades, as well as electrical installation repairs, among others. Other interesting aspects? It is included as an example of good practice in the National Strategy against Energy Poverty 2019-2024. It is aimed at homes of vulnerable families owned or managed by public administrations and third-sector entities. Link(s) https://www.fundacionnaturgy.org/accion-social/plan-vulnerabilidad-energetica/fondo-solidaridad-rehabilitacion-energetica/Example 3 Financing instrument Crowdfunding Who provided the financing and through which entity? iHelp is a solidarity crowdfunding platform that has included social housing renovation projects in the past and remains open to this type of initiative. The iHelp platform, managed by the foundation of the same name, boasts over 17 years of experience as facilitators of donations for NGOs. They base their method, as they claim, on 'effective altruism,' ensuring a secure and transparent process. iHelp was launched in 2016, revamping Cibersolidaridad.org, a charitable project that has been in operation since 2001 and stands as the first solidarity crowdfunding platform to operate in Spain. What can financing be used for? Among all the sectors it provides assistance to, the 'Environment and Ecology' stands out as the suitable section to promote any project involving the energy renovation of social housing or for individuals with low resources or in vulnerable situations Link(s) https://www.ihelp.org.esPrivate entities - Service infrastructure - Less than 1m - Spain Financing instrument Grants Who provides the financing and through which entity? Energy Diversification and Saving (IDAE), has developed the PREE Program endowed with a package of subsidies aimed at financing the renovation of the housing stock, which are managed in collaboration with the regional governments. What can financing be used for? This incentive Program aims to promote self-consumption and distributed generation, demand management, storage and flexibility, the promotion of local energy communities and the incorporation of renewable energies, with the objective by 2030 to have 42% of all energy used coming from renewable energies, with 74% of electrical energy coming renewable energy. How much is the investment? This Program is regulated by Law RD 477/2021, which gives direct concession to the autonomous communities to manage these incentive programs, which will give them access to €660 million, which can be increased to €1,320 million. Other interesting aspects? The regulatory bases of this program establish that these aids are not compatible with other aid programs that come from European funds. Link(s) https://www.idae.es/ayudas-y-financiacion/para-la-rehabilitacion-de-edificios/convocatorias-cerradas/programa-preeExample 4 Financing instrument Grants Who provides the financing and through which entity? Energy Diversification and Saving (IDAE), has developed the PREE Program endowed with a package of subsidies aimed at financing the renovation of the housing stock, which is managed in collaboration with the regional governments. What can financing be used for? The PREE Program subsidizes renovation projects ranging from changes in the thermal envelope of the building, to the replacement of thermal installations based on fossil fuels by thermal generation based on renewable sources, with the objective of a minimum reduction of 30% of primary energy consumption from non-renewable sources. How much is the investment? This Program is regulated by Law RD 477/2021, which gives direct concession to the autonomous communities to manage these incentive programs, which will give them access to EUR 660 million, which can be increased to €1,320 million. Other interesting aspects? The regulatory bases of this program establish that these aids are not compatible with other aid programs that come from European funds. Link(s) https://www.idae.es/ayudas-y-financiacion/para-la-rehabilitacion-de-edificios/convocatorias-cerradas/programa-preeOrganized multi-ownership - Multi-residential building - Less than 1m - Italy Financing instrument On tax/on-bill Who provides the financing and through which entity? In Italy, since 2007 a policy based on tax credits of 50-65% has been put in place aiming at reducing emissions by increasing energy efficiency in private and public buildings. In 2020, this set of measures has been extended, leading to the so-called Superbonus: it provides a tax credit of up to 110% of expenses aimed at increasing the energy efficiency of public, cooperative and private residential buildings. Furthermore, the regulatory framework allowed to assign the Tax claim to banks and financial institutions, to guarantee access to incentives also to the most fragile strata of the population. In February 2023, a new law decree was enacted to stop the effects of the Superbonus 110% invoice rebates applied by the construction sector companies to end clients and the consequent assignment of tax credits incentives. What was financing used for? Energy efficiency. It was depicted as a “win-win” option, which allowed to save money and reduce environmental externalities at the same time. Link(s) https://www.governo.it/it/superbonus https://it.wikipedia.org/wiki/Superbonus_110%25Public Institution - Service infrastructure - More than 100m - Europe Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The Public Sector Loan Facility (PSLF) is the third pillar of the Just Transition Mechanism. It supports projects addressing social, environmental and economic challenges deriving from the transition to the European Union’s climate target objectives in the territories most negatively affected by the climate transition as identified in the approved Territorial Just Transition Plans. Successful projects receive a grant from the European Commission and a loan from the European Investment Bank. How much is the investment? PSLF is a blending instrument combining grants up to EUR 1.5 billion from the EU budget with loans up to EUR 10 billion from the European Investment Bank, and aiming to mobilise around EUR 18.5 billion of public investments. What can financing be used for? PSLF aims at financing projects that do not generate sufficient streams of revenues to cover their investment costs. Among the eligible type of investments under PSLF could be social and affordable housing in line with the approved territorial just transition plans. Other interesting aspects? The Public Sector Loan Facility includes advisory support under the InvestEU Advisory Hub. Link(s) https://www.fi-compass.eu/funds/erdf-cf https://cinea.ec.europa.eu/funding-opportunities/calls-proposals/just-transition-mechanism-public-sector-loan-facility-call-proposals_en https://europa.eu/investeu/investeu-advisory-hub_en https://ec.europa.eu/regional_policy/funding/accessing-funds_enPublic Institution - District level - More than 100m - Europe Financing instrument Combination of different financing instruments Who provides the financing and through which entity? The Public Sector Loan Facility (PSLF) is the third pillar of the Just Transition Mechanism. It supports projects addressing social, environmental and economic challenges deriving from the transition to the European Union’s climate target objectives in the territories most negatively affected by the climate transition as identified in the approved Territorial Just Transition Plans. Successful projects receive a grant from the European Commission and a loan from the European Investment Bank. How much is the investment? PSLF is a blending instrument combining grants up to EUR 1.5 billion from the EU budget with loans up to EUR 10 billion from the European Investment Bank, and aiming to mobilise around EUR 18.5 billion of public investments. What can financing be used for? PSLF aims at financing projects that do not generate sufficient streams of revenues to cover their investment costs. Among the eligible type of investments under PSLF could be social and affordable housing in line with the approved territorial just transition plans. Other interesting aspects? The Public Sector Loan Facility includes advisory support under the InvestEU Advisory Hub. Link(s) https://www.fi-compass.eu/funds/erdf-cf https://cinea.ec.europa.eu/funding-opportunities/calls-proposals/just-transition-mechanism-public-sector-loan-facility-call-proposals_en https://europa.eu/investeu/investeu-advisory-hub_en https://ec.europa.eu/regional_policy/funding/accessing-funds_en If you wish to view results from other different locations, you can use the simulator again.
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