EU Funding for Sustainable

Energy
Cohesion Policy support
"Meeting the energy grand challenge with
the EU budget"
Brussels, 27 June 2013
Maud SKRINGER
European Commission
Directorate-General for Regional and Urban Policy
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Regional
Policy

EU Funding for Sustainable Energy MFF 2014-2020

Cohesion Policy to allocate some 20 billion (estimate!) to
investments in energy efficiency, renewable energy, smart grids
and urban mobility, including research and innovation in those
areas in complementarity with Horizon 2020
Horizon 2020: some 6.5 billion to be allocated to research
and innovation in "Secure, clean and efficient energy"
Connecting Europe Facility: some 5 billion to be allocated
to investments in TEN-E infrastructure of highest European added
value
Other European Structural and Investment (ESI) Funds:
European Agricultural Fund for Rural Development and European
Maritime and Fisheries Fund
LIFE+ and COSME might also be relevant for certain aspects
Regional
Policy

Financial Instruments in MFF proposals 2014-2020

Research,
Development
Innovation
Growth, Jobs
and Social
Cohesion

Infrastructure

Centrally managed by COM

(Financial Regulation)

Shared Management with MS

(Common Provisions Regulation)

Horizon 2020
Equity and Risk Sharing Instruments

Instruments under
Structural and Cohesion
Funds

Competitiveness &
SME (COSME)
Equity & guarantees

Creative Europe
Guarantee Facility

Social Change
& Innovation

Erasmus for all

Guarantee Facility

Connecting Europe Facility (CEF)

Risk sharing (e.g. project bonds) and equity
instruments

Regional
Policy

EU level (central
management)
National/regional
instruments (shared
management)

Off-the shelf FIs

Tailor made FIs

Significant higher amounts than

currently!

Cohesion Policy 2007-2013

Investment policy
supporting Europe 2020:
growth, jobs, quality of
life and sustainable
development
Convergence objective.
Regions with GDP per
capita below 75% of EU
average. 82% of funds
spent on this objective.
Regional competitiveness
and employment objective.
Total: 347 billion of EU
funds
Regional
Policy

Cohesion
Policy 07-13
( 347 billion)

European Regional
Development Fund
(ERDF)

Cohesion Fund

DG REGIO

European Social Fund

(ESF)

DG EMPLOYMENT
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Regional
Policy

Cohesion Policy 2007-2013:

Commission Strategic Report 2013
More details on implementation, outputs and
results so far in the Commission Strategic Report
2013
See in particular the Thematic Factsheet on Energy

http://ec.europa.eu/regional_policy/how/policy/strategic_report_en.cfm

Regional
Policy

Commission proposal for Cohesion

Policy 2014-2020 Aspects related
to Sustainable Energy

7
Regional
Policy

sustainable
inclusive

Europe 2020

smart

Thematic Objectives
1. Research and innovation
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
Regional
Policy

Concentration of ERDF proposed for 2014-2020

Low-carbon economy
Energy efficiency (EE) and
renewable energy (RES)

Research and Innovation

SMEs competitiveness
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)
Regional
Policy

Investments in Sustainable Energy in

2014-2020 Cohesion Policy
"Supporting the shift towards a low-carbon
economy in all sectors" 5 investment priorities
proposed by the Commission for ERDF and CF:
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 (housing only ERDF)
d) Developing smart distribution systems at low
voltage levels ("smart grids")

e) Promoting low-carbon strategies for urban areas

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Regional
Policy

Investments in Sustainable Energy in

2014-2020 Cohesion Policy
"Supporting the shift towards a low-carbon
economy in all sectors" Discussions in the
Trilogue on fine-tuning of wording and possible
further investment priorities:
Possibly separate investment priorities on research
and innovation in low-carbon technologies and on
high-efficiency co-generation of heat and power
Possibly support also to large enterprises in this area
Possibly low-carbon strategies for all types of
territories, and possible inclusion of urban mobility

Exact levels for ERDF concentration also

discussed!
Regional
Policy

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Investments in Sustainable Energy in

2014-2020 Cohesion Policy
Discussions in the Trilogue also on possible
further ERDF investment priority under
"Promoting sustainable transport and removing
bottlenecks in key network infrastructures":
Possibly support to improving energy efficiency and
security of supply through the development of smart
energy distribution, storage and transmission
systems and integration of distributed generation
from renewable sources
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Regional
Policy

Investments in Sustainable Energy in

2014-2020 Cohesion Policy
To ensure better spending of ERDF /CF
resources, MS will have to fulfil ex ante
conditionalities relating to those investment
priorities, e.g. linked to the Energy Performance
of Buildings Directive or the Renewable Energy
Directive.

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Regional
Policy

Indicative actions of high EU added value

Innovative renewable energy technologies, in particular
technologies mentioned in the SET-Plan and in the Energy
Roadmap 2050, along with 2nd 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
Regional
Policy

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 (energy saving
obligations, energy service companies)
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"!
Regional
Policy

Financial instruments 2014-2020

Background:
Increased importance of financial instruments in implementing EU
budget resources in future (Budget review, 5th Cohesion Report, MFF)
EU central level / "direct management": "EU Debt and Equity
Platforms" to serve as standardised rules for FIs using EU budget
Regional Policy / "shared management": Strengthening and
expansion of FIs in the context of Cohesion Policy

European Structural and Investment (ESI) Funds

legislative framework 2014-2020 to:
provide a clear set of rules, based on existing experience / guidance,
facilitate wider and more flexible use (e.g. capture synergies with
grants, wider thematic scope, more implementation options),
ensure better targeting, budgeting and monitoring of FIs,
achieve compatibility with financial instruments at EU level.
Regional
Policy

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Links to Research and Innovation

Strategies for Smart Specialisation
Future Cohesion Policy: Ex-ante conditionality on
'National or regional research and innovation
strategies for smart specalisation'
In assessing their position and assets in the context of
the development and implementation of their
strategies, MS and regions are invited to make
full use of the knowledge developed in the
framework of the SET-Plan and the Intelligent
Energy Europe Programme.
A certain number of regions can be expected to
decide that they will focus Cohesion Policy
resources for RTDI in the area of RES or EE.
Regional
Policy

Example: Smart specialisation Green Building Cluster

of Lower Austria
Connects construction and building professionals
with researchers to address challenges such as
climate change and enables innovation through
cooperation.
Involves about 200 members, of which 80% SMEs.
Other members include larger companies, research
and education institutions and associations.
Companies active in all areas of energy efficient and
sustainable
building,
refurbishment,
energy
management and energy technologies.
RegioStars awards finalist 2011
ERDF co-financing: 937.370

http://www.ecoplus.at/en/ecoplus/cluster/greenbuilding
Regional
Policy

More information
Cohesion Policy Project Examples:
http://ec.europa.eu/regional_policy/projects/stories/index_en.cfm
Policy 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
JESSICA horizontal (thematic) studies:
http://ec.europa.eu/regional_policy/thefunds/instruments/jessica_horizontal_en.cfm
REGIO case study Wave Hub project, UK:
http://ec.europa.eu/regional_policy/projects/practices/details.cfm?pay=UK&the=68&sto=2458&region=ALL&lan=7&obj
=ALL&per=ALL&defL=EN
REGIO case study ERDF Promotion of renewable energy sources in Burgenland, AT:
http://ec.europa.eu/regional_policy/atlas2007/austria/at11_en.htm
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
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
Intelligent Energy Europe Projects:
http://eaci-projects.eu/iee/page/Page.jsp
ICT-specific guide on energy efficiency:
http://ec.europa.eu/information_society/activities/sustainable_growth/ict4ee_wiki/index_en.htm
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Regional
Policy

More information on financial instruments

1. Commission Staff Working Document - Financial Instruments in Cohesion
Policy
http://ec.europa.eu/regional_policy/sources/docoffic/official/communic/financial/finan
cial_instruments_2012_en.pdf

Factsheet: Financial Instruments in Cohesion Policy 2014-2020

http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/financial_instru
ments_en.pdf

Panorama Autumn 2012: Using financial instruments to leverage support for

regional policy
http://ec.europa.eu/regional_policy/sources/docgener/panorama/pdf/mag43/mag
43_en.pdf

Financial Instruments: A Stock-taking Exercise in Preparation for the 2014-2020

Programming Period
http://ec.europa.eu/regional_policy/thefunds/instruments/doc/fls_stocktaking_fin
al.pdf
Regional
Policy

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