€800 Million Energy Efficiency Fund Kick Starts

AN ENERGY Efficiency Fund that could total €800 million has been seeded by €205 million committed by the European Commission, European Investment Bank (EIB) and Deutsche Bank.

The money is going into the European Energy Efficiency Fund which provides financing either directly, or through financial institutions to energy efficiency projects, plus a few renewable energy projects.

Initial funding of €125 million will come from the European Commission, while the EIB will provide €75 million and a further  €5 million will come from Deutsche Bank, who will act as the fund’s investment manager.

The EIB added: "Additional commitments are expected from development finance institutions and the private sector.”

The financing will be offered to municipalities, regional and local authorities, as well as public and private sector bodies acting on their behalf; for example utilities, social housing associations and energy service companies.

70 percent of the financing will be for energy efficiency projects such as: street lighting and advanced energy metering and monitoring plus, energy efficiency in buildings.

20 percent funding will be for renewable energy projects and the remaining 10 percent used for transport energy efficiency.

The EIB added: “Investments must achieve at least 20 percent primary energy savings for [energy efficiency] projects, except for the building sector where a higher percentage is required and 20 percent reduction of CO2 emissions for transport.”

Picture of the European Commission by Seber's Tumblr

Friday 27th May 2011

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