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Funding for sustainable energy: Encouraging rational energy use in the EU
EU funding for sustainable energy

2. Introduction
A number of mechanisms at EU level to finance efficient use of energy
The Intelligent Energy Europe programme (IEE) supports non technological actions to encourage sustainable energy - budget of €730 million for
Energy a priority in regional funding instruments - the ‘cohesion’ and ‘structural’ funds - major part of overall EU budget
Funding for small and medium-sized businesses (SMEs) - can help improve competitiveness through efficiency measures
The Seventh Framework Programme (FP7) helps develop new efficiency and renewable energy technologies and get them to market
EU funding for sustainable energy

3. Environment and energy
LIFE+ ( )
EU’s funding instrument for environmental projects since 1992
Wide range of energy projects in the past - energy production and distribution; industry and commerce; buildings and households; transport and horizontal management approaches
New generation of the programme for (LIFE+) will continue to co-finance sustainable energy projects
EU funding for sustainable energy

4. Innovation and sustainable energy
EU’s Competitiveness and Innovation Framework Programme (CIP) aims to encourage the competitiveness of businesses, particularly SMEs, by supporting innovation
Supports the take-up of innovative environmental technologies and the use of renewable energies and energy efficiency
EU funding for sustainable energy

5. Good Practice 1
Energy Check in Small and Medium Craft Enterprises (IEE funded)
Developed a standardised energy check tool for SMEs
Small businessmen qualified as ‘energy checkers’ and can audit other small businesses
Five businesses in five countries: Bulgarian carpenters, German bakers, Greek bricklayers/glass producers/paint producers, Irish small food producers and Spanish meat producers
EU funding for sustainable energy

6. Sustainable regions
Sustainable energy supported by two of the three regional development funds – the European Regional Development Fund (ERDF) and Cohesion Fund
Three overarching objectives:
Convergence - boosting the economies of the least prosperous regions
Regional competitiveness and employment - with a particular focus on promoting clean urban transport
European territorial cooperation - joint initiatives across borders
EU funding for sustainable energy

7. In the country
Rural development can contribute to targets to cut greenhouse gas emissions under the Kyoto Protocol
Sustainable energy projects qualify for funding from the European Agricultural Fund for Rural Development (EAFRD )
Agriculture and forestry provide raw materials for bio-energy and contribute to reductions in greenhouse gas emissions
The development of renewable energy can help diversify rural economies
EU funding for sustainable energy

8. Good Practice 2 Wood to heat a school, Germany (ERDF funded)
Municipality of Walsdorf, near Bamberg, built a kindergarten in 1993 with a biomass heating system fuelled by wood chips
Local farmers, businesses and the authorities set up a company to operate the plant and provide wood chips
Heating system now extended to neighbouring houses and retirement home
Second plant is being built to heat new housing development
Uses 650 tonnes of locally-grown wood per year
Costs €150,000 per year
Substitutes 170,000 litres of fuel oil
Cuts CO2 emissions by 400 tonnes per year
SO2 and NOx emissions cut by 750 tonnes per year
EU funding for sustainable energy

9. Research and development
Seventh Framework Programme for Research and Development (FP7) funds technological projects in energy efficiency, saving and renewables
Examples of projects: hydrogen and fuel cells, renewable electricity generation and renewable fuel production
EU funding for sustainable energy

10. Investment sources
European Investment Bank and the European Bank for Reconstruction and Development provide financing for energy projects through:
JASPERS (Joint Assistance to Support Projects in European Regions) supports preparation of infrastructure projects, principally in new Member States and accession countries
Environmental projects, including energy efficiency and renewable energy, are one of the key areas covered by JASPERS
JEREMIE aims to improve access to finance for micro business and SMEs. Emphasises technology transfer, start-ups, micro credit, technology and innovation funds
EU funding for sustainable energy

11. Investment sources (cont’d)
JESSICA is a joint initiative of the European Commission and the EIB
Helps authorities exploit EU cohesion mechanisms supporting sustainable urban development and providing new opportunities
Authroities can use European Regional Development Funds (ERDF), European Social Fund (ESF)and Urban Development Funds (UDFs) to accelerate investment in urban areas
Risk Sharing Finance Facility (RSFF) provides additional support to research, development and innovation projects in Europe. The first RSFF financing operations focus on renewable energy technologies, a priority for the EIB in 2007
EU funding for sustainable energy

12. What is ManagEnergy?
Initiative by European Commission Directorate-General for Energy and Transport
Supports local and regional actions on energy efficiency and renewable energies
Training workshops/online events
Information on case studies, good practices, legislation and programmes
Network of local and regional energy agencies (LEAs)
EU funding for sustainable energy