The European Investment Bank has earmarked €200 million per year for for energy efficiency projects as part of its Private Finance for Energy Efficiency (PF4EE) initiative. This initiative promotes financing for energy efficiency projects and provides advisory support. PF4E was launched in 2015 and provides European Investment Bank funding for small energy efficiency projects, managed by local banks.
The figure was part of the bank’s plan for spending for the next three years, published in its Operational Plan 2016-2018. The EIB plans to fund €71 billion per year over the period, including between €17-24 billion a year in higher-risk special activities. These activities are projects where the EIB has taken on a higher-risk position than the bank’s standard operations in order to support the EU’s priorities, including renewable energy and energy efficiency.
The EIB expects to fund around €400 million operations under the Connecting Europe Facility, which supports trans-European networks, including energy infrastructure. The Connecting Europe Facility works by using EU money to take higher-risk funding positions in eligible projects. This helps attract private finance for lower risk positions on the same projects.
The bank said it would increase its support for investments in solid waste management, in particular projects to increase recycling and energy from waste. This may mean “the development of new lending products and financial instruments, including support to smaller projects and promoters with different risk profiles than the Bank normally considers”, the bank said.
The bank said it will promote climate action in its work by investing in projects which bring significant mitigation or adaptation gains; mobilising extra finance for climate action from other sources; and reducing barriers to investment for the transition to a low-carbon economy. It will continue to pursue its green bond strategy.