maud skÄringer european commission directorate-general for regional and urban policy

Regional PolicyRegional Policy

EU Funding for Sustainable EnergyCohesion Policy support

"Meeting the energy grand challenge with the EU budget"

Brussels, 27 June 2013Maud SKÄRINGER

European CommissionDirectorate-General for Regional and Urban Policy

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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 aspects2


Financial Instruments in MFF proposals 2014-2020

Infrastructure

Horizon 2020Equity and Risk Sharing Instruments

Horizon 2020Equity and Risk Sharing Instruments

Instruments under Structural and Cohesion

Funds

EU level (central management)

National/regional instruments (shared management) Off-the shelf FIs Tailor made FIs

Significant higher amounts than currently!

Instruments under Structural and Cohesion

Funds

EU level (central management)

National/regional instruments (shared management) Off-the shelf FIs Tailor made FIs

Significant higher amounts than currently!

Competitiveness & SME (COSME)

Equity & guarantees

Competitiveness & SME (COSME)

Equity & guarantees

Connecting Europe Facility (CEF)Risk sharing (e.g. project bonds) and equity

instruments

Connecting Europe Facility (CEF)Risk sharing (e.g. project bonds) and equity

instruments

Social Change & Innovation

Social Change & Innovation

Creative EuropeGuarantee FacilityCreative EuropeGuarantee Facility

Erasmus for allGuarantee FacilityErasmus for all

Guarantee Facility

Shared Management with MS (Common Provisions Regulation)

Centrally managed by COM (Financial Regulation)

Research, Development Innovation

Growth, Jobs and Social Cohesion


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


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Cohesion Policy 07-

13(€ 347 billion)

European RegionalDevelopment Fund

(ERDF)Cohesion Fund

European Social Fund(ESF)

DG REGIO DG EMPLOYMENT


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


Commission proposal for Cohesion Policy 2014-2020 – Aspects related

to Sustainable Energy

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Thematic Objectives1. Research and innovation2. Information and Communication Technologies3. Competitiveness of Small and Medium-Sized Enterprises

(SME)

4. Shift to a low-carbon economy5. Climate change adaptation and risk management

and prevention6. Environmental protection and resource efficiency7. Sustainable transport 8. Employment and support for labour mobility9. Social inclusion and poverty reduction10. Education, skills and lifelong learning11. Increased institutional capacity and effectiveness of public

administration


Less developed regionsDeveloped regions &

transition regions

60% 20%

6%

44%

Concentration of ERDF proposed for 2014-2020Concentration of ERDF proposed for 2014-2020Research and Innovation Low-carbon economy

– Energy efficiency (EE) and renewable energy (RES)SMEs competitiveness

No more ceiling for investing in EE in housing (currently maximum 4% of ERDF)


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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



"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!

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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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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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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


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"!


Financial instruments 2014-2020Background: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 budgetRegional 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.

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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.


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/green-building

Example: Smart specialisation – Green Building Clusterof Lower Austria


More information

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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=ENREGIO case study “ERDF – Promotion of renewable energy sources in Burgenland”, AT:

http://ec.europa.eu/regional_policy/atlas2007/austria/at11_en.htmCOCOF technical meeting on sustainable energy March 2011:

http://ec.europa.eu/regional_policy/conferences/energy2011/index_en.cfmRegions for Economic Change Conference May 2010 Energy efficiency workshop (2A):

http://ec.europa.eu/regional_policy/conferences/sustainable-growth/programme_en.cfm?nmenu=4Practical Guide to EU funding opportunities for Research and Innovation:

http://cordis.europa.eu/eu-funding-guide/home_en.htmlSmart specialisation platform:

http://s3platform.jrc.ec.europa.eu/homeIntelligent 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


More information on financial instruments1. Commission Staff Working Document - Financial Instruments in Cohesion

Policyhttp://ec.europa.eu/regional_policy/sources/docoffic/official/communic/financial/financial_instruments_2012_en.pdf

2. Factsheet: Financial Instruments in Cohesion Policy 2014-2020http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/financial_instruments_en.pdf

3. Panorama Autumn 2012: Using financial instruments to leverage support for regional policy http://ec.europa.eu/regional_policy/sources/docgener/panorama/pdf/mag43/mag43_en.pdf

4. Financial Instruments: A Stock-taking Exercise in Preparation for the 2014-2020 Programming Periodhttp://ec.europa.eu/regional_policy/thefunds/instruments/doc/fls_stocktaking_final.pdf

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