Cohesion support for Sustainable Energy Use of Structural Funds in the area of energy efficiency and housing Brussels, 27 November 2012 Maud SKÄRINGER European Commission Directorate-General for and Urban 1
1. Cohesion support for Sustainable Energy 2007-2013 2
Cohesion 07-13 ( 347 billion) European Development Fund (ERDF) Cohesion Fund European Social Fund (ESF) DG REGIO DG EMPLOYMENT 3
Cohesion allocations to Sustainable Energy 2007-2013: EUR 10 billion Energy efficiency: EUR 5.1 billion Renewable energy: EUR 4.9 billion Biomass: EUR 1.8 billion Solar: EUR 1.2 billion Hydroelectric, geothermal, other: EUR 1.2 billion Wind: EUR 0.6 billion
Allocations to Energy Sector as % of total allocations per MS 2007-2013 (2009 figures) 5
Planned Cohesion allocations to Energy Efficiency 2007-2013: EUR 5.1 billion (increased from EUR 4.2 billion at the outset) 71.5 % allocated to specific projects (including revolving funds) by end 2011 M S EU Allocated decided amount ( ) (B) Total projects selected (2011 AIR) EU Amount ( ) (C) Rate of selection % (C) / (B) AT 6,156,013 17,383,781 282.4% BE 18,976,147 9,675,338 51.0% BG 258,104,621 74,144,427 28.7% CY CZ 942,214,473 342,658,632 36.4% DE 373,182,646 307,047,003 82.3% DK EE 28,760,241 27,844,967 96.8% ES 110,048,101 33,326,165 30.3% FI 24,243,917 6,926,847 28.6% FR 289,167,688 177,008,914 61.2% GR 71,170,000 492,363,482 691.8% HU 328,531,227 163,856,263 49.9% IE 19,000,000 22,346,186 117.6% IT 838,592,232 417,305,116 49.8% LT 370,508,149 439,300,937 118.6% LU 504,873 1,744,838 345.6% LV 60,220,000 106,078,878 176.2% MT 12,550,000 3,096,758 24.7% NL 34,250,000 19,917,049 58.2% PL 499,012,133 389,379,855 78.0% PT 74,200,883 49,599,067 66.8% RO 253,241,727 60,131,969 23.7% SE 9,173,788 1,057,737 11.5% SI 105,700,000 73,707,906 69.7% SK 78,584,184 64,760,737 82.4% UK 150,657,204 167,360,699 111.1% CB 119,642,025 164,027,992 137.1% EU27 + crossborder 5,076,392,272 3,632,051,543 71.5%
Energy Efficiency in the "Recovery Package" Amendment to ERDF regulation (May 2009) Up to 4% of the national ERDF allocation can go to energy efficiency and renewable energy in housing Member States define eligible categories of existing housing, to support social cohesion Further regulatory amendment to facilitate the use of innovative financial instruments in this area (June 2010)
Why focus Cohesion support on Sustainable Energy in Buildings? A WIN-WIN-WIN OPPORTUNITY: Development/Social Cohesion/Energy Savings Creating new and sustainable jobs; Building local and regional capacities; Creating local opportunities for R&D and innovation; Lowering energy consumption and improving security of energy supply; Reducing energy costs and alleviating energy poverty (in the case of residential buildings); Improving the quality of residential/public/ commercial buildings; Reducing greenhouse gas emissions and improving the local environment.
Energy Performance of Buildings Directive Setting the framework for investments through: Minimum energy performance requirements (EPRs) for new buildings and buildings undergoing major renovation Cost-optimal methodology requiring minimum EPRs to be set at cost-optimal levels Energy performance certification of buildings and inspections for heating and air-conditioning systems System requirements for new, replacement and upgrading of technical building systems at least for heating, hot water, air conditioning and ventilation
while ensuring an integrated approach! Importance of energy efficiency of buildings, but linking to and ensuring coherence with general elements which ensure the investments' sustainability (with respect to occupation and obsolescence) Importance of the other investments which determine the environment of buildings or houses: public spaces, shopping areas, schools, accessibility of transport and services, etc. Modernising houses and buildings is a "necessary but not sufficient" condition to guarantee the quality of life in cities
Refurbishment of social housing France Refurbish most energy consuming social housing units Be exemplary and trigger a multiplier effect Affect a large number of dwellings (some 110 000 foreseen) Early results show creation / maintenance of local jobs, mainly in SMEs, and heating fees reduced by 40% on average
Revolving fund for energy efficiency in housing Estonia Switch from grants to a revolving fund KredEx (Credit and Export Guarantee Fund of the State) supports this Innovative scheme, help from KfW Started 06/2009 03/2011: 231 contracts with multiapartment buildings, total 18,4 million (average 81.100, saving 33%)
1. ERDF to equity of the fund ERDF EUR 17 Million Revolving fund for energy efficiency in housing Estonia KredEx (Fund) EUR 49 Million (+ 15% self-financing, total 57 mn ) 2. Additional funding up to 50% of total Development Bank (CEB) EUR 29 Million 3. Favorable funding to the commercial banks, intrest 4% to end-beneficiaries Swedbank SEB State guarantee Apartment Building Apartment Building Apartment Building Apartment Building Apartment Building Apartment Building 4. Loan to the apartment associations. Commercial Bank takes the risk of the lenders
JESSICA fund in Lithuania JESSICA Holding Fund amounts to 227 million: 127 million ERDF 100 million national co-financing Expected later: some funds by commercial bank Implementation started June 2010 Number of eligible apartment blocks: 24 000 Estimated cost to renovate one apartment block (60 apartments @ 50 m 2 ): 290 000 Euro After the modernization, one house would halve energy consumption and save 125 MWh a year This example: 45 apartment multi-family building Insulated external walls and roof Windows replaced Glazing of balconies Modernization of heating substation & heating systems Energy efficiency improvement of 60 %
Further assistance/experience Number of innovative projects demonstrated under ELENA Facility and Intelligent Energy Europe (IEE) Programme, e.g. "FRESH" on social housing (http://www.fresh-project.eu/) Guidelines for Cohesion Managing Authorities (MAs) on evaluation of EE projects in buildings under development (available in 2013) EIB-EPEC is on awareness-rising tour for MAs Specific action on capacity building of MAs foreseen in the IEE WP 2012 Build-up skills: Potential for expansion through the ESF (MS roadmaps for workforce qualification)
2. Commission proposal for Cohesion 2014-2020 Aspects related to Sustainable Energy 16
Cohesion 2014-2020 Adoption of Commission proposal in October 2011 Mission: Reduce disparities between Europe's regions strengthening economic, social and terrritorial cohesion Contribute to the Europe 2020 Strategy for smart, sustainable and inclusive growth Need to increase the performance and impact of the funds: Ex-ante conditionalities Thematic concentration of funds: 11 thematic objectives linked to the Europe 2020 Strategy
Europe 2020 inclusive sustainable smart 1. Research and innovation Thematic Objectives 2. Information and Communication Technologies 3. Competitiveness of Small and Medium-Sized Enterprises (SME) 4. Shift to a low-carbon economy 5. Climate change adaptation and risk management and prevention 6. Environmental protection and resource efficiency 7. Sustainable transport 8. Employment and support for labour mobility 9. Social inclusion and poverty reduction 10. Education, skills and lifelong learning 11. Increased institutional capacity and effectiveness of public administration Cohesion
Research and Innovation Concentration of ERDF SMEs competitiveness Energy efficiency and renewable energy Developed regions & transition regions Less developed regions 6% 60% 20% 44% No more ceiling for investing in EE in housing (currently maximum 4% of ERDF) Potential minimum 17 bn for EE & RES in 2014-2020
Investments in Sustainable Energy in 2014-2020 Cohesion Supporting the shift towards a low-carbon economy in all sectors 5 investment priorities proposed: a) Promoting the production and distribution of RES b) Promoting EE and RES use in SMEs c) Supporting EE and RES use in public infrastructures and in the housing sector (only ERDF) d) Developing smart distribution systems at low voltage levels e) Promoting low-carbon strategies for urban areas 20
Key actions for Investments Innovative renewable energy technologies, in particular technologies mentioned in the SET-Plan and in the Energy Roadmap 2050, along with 2 nd and 3rd generation biofuels Supporting marine-based renewable energy production Investment in the wider use of Energy Performance Contracting in the public buildings and housing sectors Energy efficiency and renewable heating and cooling in public buildings, in particular demonstration of zero-emission and positive-energy buildings, and deep renovation of existing buildings to beyond cost-optimal levels EE and RES in SMEs, including information campaigns Integrated low-carbon strategies and sustaianble energy action plans for urban areas, including public lighting systems and smart grids
Implementation Principles Energy Mainly private sector investment. Ensure that public funding complements private investment, leveraging it and not crowding it out EE: Consider creating value for energy savings through market mechanisms before public funding (ESCOs ) Financial instruments to be used where potential for private revenue or cost savings is large For physical investment, grants to be used primarily: to address market failures to support innovative technologies to support investments beyond cost-optimal EE performance: ensure energy savings and GHG emission reductions above "business as usual"!
Innovation for Sustainable Growth Smart & Sustainable = 2 sides of same coin Future Cohesion : Ex-ante conditionality on 'National or regional research and innovation strategies for smart specalisation' Research & Innovation (R&I) needed in the area of sustainable energy A number of MS and regions expected to include energy R&I in forthcoming strategies
Guide issued in November 2012 How to integrate ecoinnovation, RES, EE in the Research & Innovation Strategies for Smart Specialisation (RIS3) Why it makes sense What authorities & stakeholders can do Collection of good practices
Sustainable Urban Development Aim = Support integrated actions to tackle the economic, environmental, climate and social challenges affecting urban areas ERDF = Increased focus on sustainable urban development: To be achieved through earmarking of a minimum of 5% of national ERDF resources for Sustainable Urban Development
Research & Innovation / National R&I Strategies for Smart Specialisation Specific CP funding on sustainable energy Integrated Sustainable Urban Development Investments in sustainable energy for socio-economic development through Cohesion (CP)
Thematic objectives contribute to EU 2020 Regulations Proposed by Commission Translates objectives and targets of EU 2020 into indicative actions of high EU added value Alignment with EU 2020: evaluation, results expected, indicative allocation by thematic objective Strategy consistent with ESF, thematic objectives, investment priorities, etc. Common Strategic Framework Partnership Agreement Operational Programmes Projects Annex I to CPR Commission delegated act Prepared by MS in dialogue with Commission, approval if Commission observations taken into account Drawn up by MS in cooperation with partners MS, except major projects, where documentation submitted to Commission, approval needed 27 Increasing MS competence
More information Cohesion Project Examples: http://ec.europa.eu/regional_policy/projects/stories/index_en.cfm Learning Database: http://ec.europa.eu/regional_policy/cooperation/interregional/ecochange/studies_en.cfm?nmenu=5 Expert Evaluation Network reports on RES and EE in housing: http://ec.europa.eu/regional_policy/information/evaluations/index_en.cfm#1 COCOF technical meeting on sustainable energy March 2011: http://ec.europa.eu/regional_policy/conferences/energy2011/index_en.cfm Regions for Economic Change Conference May 2010 Energy efficiency workshop (2A): http://ec.europa.eu/regional_policy/conferences/sustainable-growth/programme_en.cfm?nmenu=4 Commission proposals for Cohesion 2014-2020: http://ec.europa.eu/regional_policy/what/future/proposals_2014_2020_en.cfm List of Cohesion funds Managing Authorities: http://ec.europa.eu/regional_policy/manage/authority/authority_en.cfm Practical Guide to EU funding opportunities for Research and Innovation: http://cordis.europa.eu/eu-funding-guide/home_en.html Smart specialisation platform: http://s3platform.jrc.ec.europa.eu/home ICT-specific guide on energy efficiency: http://ec.europa.eu/information_society/activities/sustainable_growth/ict4ee_wiki/index_en.htm 28