1. Financial Instruments –Overview and advisory services Energy and Managing Authorities (EMA) Network Brussels, 17 March 2015
Robert PERNETTA
Policy Analyst
European Commission
Directorate-General for Regional and Urban Policy

2. Principles on financial instruments
Types of financial instruments
Loans
Guarantees
Equity
Addressing lack of available financing
Providing financing at favourable conditions
Advantages of financial instruments
Leverage effect
Revolving nature
Better quality of projects
Increasing efficiency and effectiveness of EU funding
Ways to implement financial instruments
Tailor made
'Off-the shelf'
EU level
Implementation options allowing for standardisation and customising

3. State of play in the energy sector
(as of end of 2013)
12 Member States
25 funds
€ 590m paid to funds
€ 254m paid out
Only energy efficiency and urban development
Limited geographic coverage
Slow implementation
Low leverage
BUT first positive examples
(preliminary information)
20 Member States
Target: 20% of allocations to 'low carbon economy'
All projects eligible under Cohesion Policy funds
Accelerated implementation
More sophisticated products
Higher leverage

4. Ex-ante assessment Why? What? When?
Evidence and informed decision making by managing authorities
What?
Provide evidence of
Adequacy of the envisaged FI against needs
Expected contributions of the policy objectives
When?
No formal deadline
Can be prepared in stages
Coherent documents with all elements must be submitted to monitoring committee
Ex-ante assessment to be updated when FI are changed or expanded

5. Off-the-shelf instruments
What are off-the shelf instruments?
Financial instruments complying with the standard terms and conditions laid down by the Commission
Help to accelerate implementation
Learn and build on the experience from
Managing Authority
Holding Fund
Financial
products
Specific fund managed
by financial intermediary
Final recipients
Key advantages
State aid compatibility
Governance structures
Based market practise
Full pass on of advantage to final beneficiary
Minimum leverage ensured
Renovation Loan based on a Risk sharing loan model
Urban Development Fund (in preparation)

6. Useful sources
Off the shelf instruments (Annexes to Implementing Act 2014/964/EU)
fi-compass advisory platform