Clearinghouse Support Bridging RUE in Building Projects and

Clearinghouse Support Bridging RUE in Building Projects and Financing Clear. Support Project & EU Energy Efficiency policy Riga 30. May 2007 Vagn Bendz Jørgensen for DEA Presentation prepared by: 1

Overview Intro to the Clear. Support Project q Part 2: EU Energy Efficiency Policy - Buildings q Part 1: International/European Sustainable Energy Policy of relevance to the Clearinghouse Support project 2 www. clearsupport. eu

EU energy situation EU Green book on security of supply (1999) q More than 70% of oil and gas imported in future q More than 50% of energy imported q Climate – CO 2 q Crude oil 70 USD/bbl, - many countries have good economy – will it last? q Large saving potential in heating sector 3 www. clearsupport. eu

Negajoules is the largest fuel in EU 25 (data from Eurostat processed by Enerdata) 4 www. clearsupport. eu

New building code in DK q q Incentives to build better buildings. 5 www. clearsupport. eu Will reduce energy demand with 25 - 30 % from 2006 The codes will be renewed in 2010 and 2015

Part 1 The ‘Clear. Support’ Project Supporting Clearinghouse Actions 6 www. clearsupport. eu

The Clear. Support Project Clearinghouse Support Bridging RUE in Building Projects and Financing Pilot project for European Clearinghouse(s) • to enhance the implementation of small scale sustainable energy investments in building sector • in line EU energy policy goals Focus: Support implementation of projects in the building sector actions in Latvia, Lithuania, Czech Republic, Crete and (Slovenia). + Partners from Germany, Denmark, Belgium and Sweden. Project period: Jan 2007 – Dec 2009 7 www. clearsupport. eu

Clear support partners q ECNet, DK q DEA, DK q IPE, LV q B & K, DK q AF Terma, LT q Fedarene, BE q BAPE, PL q Four. Fact, SE q SEVEn, CZ q IB-SH, DE q BCEI ZRMK q BEA, DE q TEI, Crete, GR 8 www. clearsupport. eu

C-S Objectives q RUE in building sector. q Focus on municipal and residential sector q PSF – “Clearing. House” Support q Organisation, planning (WP 1, 2 and 6) ECNet q Financing schemes (WP 3) BEA q RUE in buildings (WP 4) B&K q Framework for RUE in buildings (WP 5) DEA q Dissemination, information (WP 7 and 8) 9 www. clearsupport. eu

Clearinghouse Support What is a Clearinghouse? Bridging RUE in Building Projects and Financing One General Definition: “An agency associated with an exchange, which settles trades and regulates delivery” In our context: “An agency/office that is building bridges between Projects and Financing” (PSF is starting/test of a clearinghouse) 10 www. clearsupport. eu

The Clear. Support Context Green Paper on Energy Efficiency “Doing more with less” Specific Actions ØCredit lines ØLocal banks ØDesk offices ØGrants ØPilot projects ØMonitoring Concrete EU and local programs 11 Action Plan ØSpecific actions ØWorking group Clear. Support project www. clearsupport. eu EC Working Group ØLocal & regional representatives ØEBRD, EIB, IFIs ØRegional & structural funds Parallel studies on financing instruments

Clear. Support Intervention Objective 1: Bridging gab between Project & Financing Objective 2: Improving framework for RUE building projects Project owners RUE in building design q Municipalities q Residential Project Service Fac. q Project Identification q Project document Clear. Support Financing sources q National funds/programmes q EU funds – ERDF and Cohesion q National bank system q International Financing Institutions q Financing concepts 12 q Project development tools q Project standard solutions Framework for RUE in buildings q Regulatory framework q Suppliers q Socio-economic aspects Financing schemes q. Mix of financing sources q. Integrating fin. concepts q. Defining adequate criteria www. clearsupport. eu

Clear. Support - facilitating building renovation Objective 1: ’bridging the gab’ Financing institutions: Lack of trust in EE projects Project owner: No access to financing The missing link !! Project owner: Access to financing Clear. Support: Helping to bridge the gab 13 www. clearsupport. eu Financing institutions: Get confidence in EE projects

Key services of Clearinghouse Support Key aim: Support initiation of 100 -200 specific building renovations in the target 5 regions Means: q Offering assistance to project assessments q Mediating between project owners and FIs And. . q Improving the framework conditions for building renovation projects (regulatory, technical and financial) 14 www. clearsupport. eu

Project Service Facility - PSF Core activity of the Clear. Support project PSF types of services: q Helping the target groups with inquiries on RUE in building measures (regulatory, technical and financial). q Proactive assistance on project development & documentation: Site visits to the project owner; recommending adequate project handling q Adopting project results and refining them for regional/local use. q Integration with existing financing structures: effective links and sound co-ordination 15 www. clearsupport. eu

Training of target groups q Training modules for: Ø Municipalities Ø Architects/planners Ø Housing associations q Training issues: Ø EU legal framework (policies, directives) Ø Access to financing Ø Project development Minimum two training session in each target region. Short half-day sessions in cooperation with a local bank 16 www. clearsupport. eu

Clearinghouse Support Bridging RUE in Building Projects and Financing 17 Project Website www. clearsupport. eu

Part 1 EU Energy efficiency Policy - Buildings 18 www. clearsupport. eu

Energy efficiency has high priority q IEA World Energy Outlook shows that energy efficiency has the largest potential Ø More important than nuclear and renewable q Main element in G 8’s energy strategy Ø IEA is investigating energy efficiency options in different areas for G 8 q Highest priority for the European Council of Ministers Ø Several EU directives over the last years Ø Energy efficiency action plan on its way Ø Energy policy with ambitious targets 20% agreed upon in March 2007 19 www. clearsupport. eu

EU Action Plan on Energy Efficiency A very ambitions and comprehensive plan q Goal: To deliver 20 % additional savings Ø Not only end-use, also more efficient energy supply Ø Transport included q More than 75 actions q 10 key actions 20 www. clearsupport. eu

EU Action Plan on Energy Efficiency - Central elements q Appliances and products Ø Minimum efficiency standards l Ambitions timetable for implementation l Dynamic with regular update Ø Update of labelling l New framework directive l Move of scale for products – only 10 -20 % shall be A class q Buildings Ø Minimum performance requirements l For new and renovated buildings l Also for components Ø Strategy for very low energy or passive houses q Transport – more efficient cars 21 www. clearsupport. eu

EU Action Plan on Energy Efficiency - Financing instruments The European Commission wish to put in place a number of instruments to create better financing possibilities for sustainable energy projects: q Establishment of energy service companies, private-public partnerships, energy audits etc. q European Commission want Member States to prioritise sustainable energy projects under Structural Funds q Creation of Clearinghouse(s) is one of the desired instruments, but the concept is not yet developed >> Clear. Support project is pioneering in Clearinghouse question 22 www. clearsupport. eu

EU Action Plan for Energy Efficiency: COMMISSION STAFF WORKING DOCUMENT (1) 7. 4. 1. Contracting forms for energy efficiency The Commission will seek to identify and remove in the Member States remaining legal barriers to the use of sharedand guaranteed savings, third-party financing, performance contracting and similar financing models often used by Energy Service Companies. A study will be carried out in 2007 on Member State and candidate country legislation to identify remaining barriers and recommend further measures. Standardarised monitoring and verification protocols will be developed in 2007 - 2009, as well as simplified and standardised contract models, designed to improve their quality and wider use. {COM(2006) 545 final} 23 www. clearsupport. eu

EU Action Plan for Energy Efficiency: COMMISSION STAFF WORKING DOCUMENT (2) 7. 4. 2. Clearing houses for information and bundling of small investment projects In 2007 -2009, local revolving funds and other instruments will be developed or adopted to be financed by EBRD, EIB Group, Structural and Cohesion Funds and private banks, each affiliated with a local information clearing house. These funds will combine capacity building and performance-related grants with commercial sources of finance, drawing on existing models such as the EBRD`s energy efficiency credit lines in Bulgaria 58, and the new International Energy Efficiency Financing Protocol (IEEFP). Priority areas will be installation and building companies, as well as enterprises and households implementing energy savings projects. (SEE “JASPERS web) {COM(2006) 545 final} 24 www. clearsupport. eu

EU Action Plan for Energy Efficiency: COMMISSION STAFF WORKING DOCUMENT (3) 7. 4. 3. Financing facilities for SMEs and ESCOs and for housing ……. . , Commission will in 2007 -2012 promote the use of grants and other public-private financial measures, including funds, for SMEs and the public sector to encourage the use of energy audits and specific energy efficiency investments identified in energy audits. If audits lead to implementation of measures, part of the loans may be transformed into a grant. EBRD, EIB Group and EU Structural and Cohesion Funds will be considered for participation. These measures will also be used to improve the possibilities for the more intensive use of the Structural and Cohesion Funds for energy efficiency investments, including the housing sector in new Member States, in particular multi-family and social housing. ……. {COM(2006) 545 final} 25 www. clearsupport. eu

Related EU EE directives etc. q Labelling Framework Directive (92/75/EC) Ø 8 Implementation directives q Energy Star Agreement on office equipment (Regulation (EC) No 2422/2001) q Eco-Design Directive (2005/32/EC) q Energy Performance of Buildings Directive (2002/91/EC) q Energy End-Use Efficiency and Energy Services Directive (2006/32/EC) 26 www. clearsupport. eu