Commission launches the European Energy Efficiency Financing Coalition to accelerate private investment in energy efficiency
The European Energy Efficiency Financing Coalition was launched today by the European Commissioner for Energy, Kadri Simson, in the presence of Philippe Henry, Vice-President of the Government of Wallonia and Minister of Climate, Energy, Infrastructure and Mobility, representing the Belgian Presidency, and Thomas Östros, Vice-President of the European Investment Bank (EIB).
On this occasion, the Commission reiterated the importance of mobilising private investment and market uptake for energy efficiency, and of strengthening the cooperation between the different actors to achieve this. This new initiative brings together EU countries, Financial Institutions and the Commission, at the highest-level, to create a long-term, viable funding framework for energy efficiency investments. This is another step in achieving the objectives of EU legislation designed to progress towards European Green Deal objective of net-neutrality by 2050, in particular the EU directives on energy efficiency and on the energy performance of buildings.
Several high-level panellists attended the launch, including Csaba Kandrács, Deputy Governor of the Central Bank of Hungary, Liesel van Ast, Deputy Head of the UN Environment Programme Finance Initiative, a privileged partner of the Coalition, and Alexandra Jour-Schroeder, Deputy Director-General, DG Financial Stability, Financial Services and Capital Markets Union. Niels Fuglsang and Jutta Paulus, Members of the European Parliament and respectively the rapporteur and shadow rapporteur on the revision of the Energy Efficiency Directive delivered a video message. At the event, representatives of the European Banking Federation, Swedbank, European Investment Bank and European Bank for Reconstruction and Development discussed the initiative from the perspective of financial institutions.
Commissioner for Energy, Kadri Simson highlighted that:
‘The European Energy Efficiency Financing Coalition will play a pivotal role in scaling up private investments for energy efficiency. The Coalition provides the right framework, both at European level and national level. At European level, experts work together to develop solutions for the market on energy efficiency; at national level, new national ‘hubs’ would be created to identify national needs for investments on energy efficiency. In doing so, they would help to deliver on important breakthroughs for the market. All this work will only be possible by Member States, Financial Institutions and the Commission joining forces in a single initiative – the Coalition.’
Next Steps
An official call for membership for financial institutions to join the initiative will be soon available on the Coalition’s webpage.
The Commission is working with EU countries to set up the national hubs. The different workstreams (plenary meetings, expert platform and national hubs) are expected to kick-off later in the year.
Background
On 19 December 2023, Commissioner for Energy Kadri Simson and the Energy Ministers of all 27 EU countries signed a Joint Declaration on Energy Efficiency Financing and the European Energy Efficiency Financing Coalition, in the margins of the Energy Council. This declaration highlights the importance of creating a long-term, viable funding framework for energy efficiency investments, with strong political endorsement by the EU countries. Of particular importance will be the work of the national hubs, which will develop initiatives to address specific national needs on energy efficiency financing, taking into account the previous Sustainable Energy Investment Forums activities.
The Coalition was announced in the ‘EU Save Energy’ Communication, which was part of the REPowerEU plan, with the aim to address the call made by European leaders to step up investments in energy efficiency by the European Council in its conclusions of 20-21 October 2022, and of 15 December 2022. The legal basis of this initiative is Article 30(7) of Directive (EU) 2023/1791 on energy efficiency (recast).
The Coalition will operate at three different levels: a political level, an expert group and national hubs that will have the role to identify energy efficiency financing solutions for each market. This framework is expected to help EU countries and the Commission in the green transition, reduce the gap between available public financing and financial needs for energy efficiency investments and scale-up private investments.
This initiative builds on the results of the Energy Efficiency Financial Institutions Group (EEFIG), created by the Commission and the United Nations Environment Programme Finance Initiative (UNEP FI) in 2013. EEFIG served as a joint platform for cooperation and dialogue with financial institutions on energy efficiency and provided the Commission with concrete studies and recommendations on the way forward for energy efficiency financing. UNEP FI will remain a privileged partner of the Coalition.
