Spain Aims for €600 Million Sustainability Fund

SPAIN has launched a fund with the ultimate target of €600 million to fund energy efficiency and renewable energy projects.

The European Investment Bank (EIB) and the Spanish Energy Saving and Diversification Institute (IDAE) have concluded an agreement which sees the two bodies launch a JESSICA (Joint European Support for Sustainable Investment in City Areas) holding fund, which is designed to fund sustainable projects with an innovative use of EU structural funds.

Magdalena Álvarez Arza, EIB Vice-President, said at the launch of the fund: “The multiplier effect of the JESSICA initiative, which will make it possible to increase the volume of financing for projects contributing to greater energy efficiency and more sustainable growth, in line with the objectives of the EIB and the European Union.

“The ability of these instruments to foster job creation and economic recovery by giving a boost to a highly innovative sector in which Spain represents an international benchmark,” she added.
Fabrizio Hernández Pampaloni, the Secretary of State for Energy, stated: “The innovative nature of this financing formula aimed at promoting energy efficiency and renewables.”

The agreement outlines the operational mechanisms of the fund, which will be initially seeded with €127.6 million managed by the EIB.

Energy efficiency, renewable energy in the construction, industry, transport, energy-related and the public service sectors will be eligible for financing through this fund.

The fund is designed to also encourage further finance from the private sector, with the ultimate aim of a total investment of €600 million by the end of 2015.

Picture of Madrid by Zaqarbal

Tuesday 5th July 2011

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