Mobilising investment in energy efficiency and renewables is key for Europe's energy transition. The European Commission proposed the Smart Finance for Smart Building (SFSB) initiative in the recently published Clean Energy for All Europeans winter package.
For the SFSB to succeed it is essential to boost project aggregation and build a substantial pipeline of energy efficiency investment projects across Europe. Cities and communities are the place where economic, social and environmental transformation actually happens. Cities and communities play a key role in aggregating smaller projects into sizable packages and in mobilising the significant amount of finance needed for the energy transition.
However, despite a tremendous potential, too few cities and communities in Europe succeed in developing and scaling up investment packages. A high degree of organisational, technical and financial innovation is needed to reach significant scale. A key gap is the lack of capacity of public authorities, especially of small and medium-sized municipalities to transform their overall long-term strategies e.g. Sustainable Action Plan or similar into credible investment concepts. Public authorities have limited resources, in particular, to access financial and legal expertise needed to collect additional data, develop an investment programme of scale i.e. pooling projects and/or bundling with neighbouring constituencies and to develop finance strategies with demonstrate sufficient maturity to enable access to different finance routes, i.e. to develop their 'investment concept'.
These concepts would allow a large number of cities and communities to start the process for mobilising the investments in sustainable energy. When relevant these concepts could be combined with other EU financing streams and services to trigger the expected investment (EFSI, ESIF, PDA, National Investment Platforms).Scope:
Proposals are expected to set up and run a 'European City Facility' which offers financial support and services to cities and municipalities or their groupings:
The Commission considers that proposals requesting a contribution from the EU of around EUR 10 million would allow this specific challenge to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.Expected Impact:
Proposals are expected to demonstrate, the impacts listed below, using quantified indicators and targets wherever possible:
Additional positive effects can be quantified and reported when relevant and wherever possible:
European Fund for Strategic Investment
European Structural and Investment Funds
Project Development Assistance, i.e. ELENA-EIB, EASME PDA