Covenant of Mayors Office
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Funding Instruments
Covenant Signatories Signatories Signatories represent cities, with different size from small villages to major metropolitan areas such as London or Paris, that have signed the Covenant of Mayors on a voluntary manner and are committed to implement sustainable energy policies to meet and exceed the EU 20% CO2 reduction objective through increased energy efficiency and development of renewable energy sources. , voluntarily committed to meet and exceed the EU target of 20% CO2 emissions reduction by 2020, are on the lookout for funding opportunities crucial to develop their Sustainable Energy Action Plans Sustainable Energy Action Plans A Sustainable Energy Action Plan (SEAP) is the key document in which the Covenant signatory outlines how it intends to reach its CO2 reduction target by 2020. It defines the activities and measures set up to achieve the targets, together with time frames and assigned responsibilities. Covenant signatories are free to choose the format of their SEAP, as long as it is in line with the general principles set out in the Covenant SEAP guidelines. and finance the actions featured in it.
This section presents a non-exhaustive list of financial programmes and initiatives available to Covenant Signatories Signatories Signatories represent cities, with different size from small villages to major metropolitan areas such as London or Paris, that have signed the Covenant of Mayors on a voluntary manner and are committed to implement sustainable energy policies to meet and exceed the EU 20% CO2 reduction objective through increased energy efficiency and development of renewable energy sources. .
INNOVATIVE FINANCING SCHEMES
Numerous sources of financing are available at local, regional and national levels, including from:
- Local authorities’ own resources
- Local partners’ resources
- Municipal and regional subsidies
- Public-Private Partnerships
To find out how fellow Covenant Signatories Signatories Signatories represent cities, with different size from small villages to major metropolitan areas such as London or Paris, that have signed the Covenant of Mayors on a voluntary manner and are committed to implement sustainable energy policies to meet and exceed the EU 20% CO2 reduction objective through increased energy efficiency and development of renewable energy sources. are tapping into these and other resources, read the collection of case studies listed in the Covenant Thematic Leaflet on financing.
EUROPEAN FUNDS MANAGED AT NATIONAL AND REGIONAL LEVEL
Structural Funds & Cohesion Fund
The European Cohesion Policy is divided into three main funding instruments:
- The European Regional Development Fund (ERDF)
- The European Social Fund (ESF)
- The Cohesion Fund (CF)
European Regional Development Fund (ERDF) for energy efficiency improvements and use of renewable energy in existing housing
- In each Member State, expenditure on energy efficiency improvements and on the use of renewable energy in existing housing shall be eligible up to an amount of 4 % of the total ERDF allocation.
- Member States ought to amend existing priorities to reallocate received funds (ERDF) towards energy-saving measures in existing housing
- No formal approvals of the Operational Programmes by the European Commission European Commission The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and the general day-to-day running of the Union. With the Covenant of Mayors initiative, the European Commission - DG Energy endorses and supports the efforts deployed by local authorities in the implementation of sustainable energy policies. are needed
- Member States do not need to wait until the end of 2013 to implement the necessary changes
Communication of the European Commission European Commission The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and the general day-to-day running of the Union. With the Covenant of Mayors initiative, the European Commission - DG Energy endorses and supports the efforts deployed by local authorities in the implementation of sustainable energy policies. ‘Regional policy contributing to sustainable growth in Europe’
JESSICA technical assistance
JESSICA – Joint European Support for Sustainable Investment in City Areas - is an initiative developed by the European Commission European Commission The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and the general day-to-day running of the Union. With the Covenant of Mayors initiative, the European Commission - DG Energy endorses and supports the efforts deployed by local authorities in the implementation of sustainable energy policies. and the European Investment Bank, in collaboration with the Council of Europe Development Bank.
Under new procedures, Member States or regions are being given the option of using the structural funds to make repayable investments in projects forming part of an integrated plan for sustainable urban development. These investments, which may take the form of equity, loans and/or guarantees, are delivered to projects via Urban Development Funds and, if required, Holding Funds.
JASPERS technical assistance
JASPERS - Joint Assistance to Support Projects in European Regions - assists the 12 Central and Eastern EU Member States in the preparation of major projects to be submitted for grant financing under the Structural and Cohesion Funds. The aim is to increase the quantity and quality of projects to be sent for approval to the services of the Commission. JASPERS’ assistance, which is provided free of charge, is geared towards accelerating the absorption of the available funds.
Cooperation programme INTERREG IV A
The programme supports cross-border cooperation along all interior borders of the EU. The aim is to enhance the exchange of experiences between the European regions and find joint solutions on problems encountered. The main idea is to prevent the "re-inventing of wheel" and replicate faster successful policies and strategies implemented elsewhere. The added value of such projects is sometimes intangible – improved knowledge, capacities, contacts, and new experiences, sometimes pilot actions and hard investments are financed.
Cooperation programmes INTERREG IV B
Pilot projects, investment preparation and light investments are allowed within this type of cooperation.
EUROPEAN FUNDS MANAGED CENTRALLY BY THE EUROPEAN COMMISSION European Commission The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and the general day-to-day running of the Union. With the Covenant of Mayors initiative, the European Commission - DG Energy endorses and supports the efforts deployed by local authorities in the implementation of sustainable energy policies.
Cooperation programmes INTERREG IV C & URBACT
Interregional cooperation (INTERREG IV C): Projects are strictly focused on the exchange of experiences and some light pilot initiatives - testing methodologies and tools. Investment activities are not supported.
URBACT: European exchange and learning programme for cities promoting sustainable urban development. Cities work together to develop solutions to major urban challenges, reaffirming the key role they play in facing increasingly complex societal changes.
Intelligent Energy Europe Programme (IEE)
There are many untapped opportunities to save energy and encourage the use of renewable energy sources in Europe, but market conditions do not always help. The IEE is a tool for funding action to improve these conditions and move us towards a more energy intelligent Europe.
With € 730 million funds available between 2007 and 2013, the IEE reinforces EU’s efforts to meet its 2020 energy targets. The programme runs annual calls for proposals and its funding covers up to 75% of the eligible project costs.
The IEE considers local authorities as a main target group. It co-finances projects that contribute to the success of the Covenant of Mayors Covenant of Mayors The Covenant of Mayors is the mainstream European movement involving local and regional authorities in the fight against climate change. It is based on a voluntary commitment by signatories to meet and exceed the EU 20% CO2 reduction objective through increased energy efficiency and development of renewable energy sources. initiative, notably through promotion, facilitation of networking among local authorities, regions and their local partners and technical support to Covenant Signatories Signatories Signatories represent cities, with different size from small villages to major metropolitan areas such as London or Paris, that have signed the Covenant of Mayors on a voluntary manner and are committed to implement sustainable energy policies to meet and exceed the EU 20% CO2 reduction objective through increased energy efficiency and development of renewable energy sources. .
ELENA facility
ELENA – European Local Energy Assistance – is a facility that provides grants for technical assistance. The wide range of measures eligible for such financial support include: feasibility & market studies; structuring of investment programmes; business plans; energy audits; preparation of tendering procedures & contractual arrangements and allocation of investment programme management to newly recruited staff. The aim is to bundle dispersed local projects into systemic investments and make them bankable.
The actions featured in the municipalities’ action plans Action plans A Sustainable Energy Action Plan (SEAP) is the key document in which the Covenant signatory outlines how it intends to reach its CO2 reduction target by 2020. It defines the activities and measures set up to achieve the targets, together with time frames and assigned responsibilities. Covenant signatories are free to choose the format of their SEAP, as long as it is in line with the general principles set out in the Covenant SEAP guidelines. and investment programmes must be financed through other means, such as loans, ESCOs or structural funds.
ELENA is financed through the European Intelligent Energy-Europe programme with an annual budget of €15 million.
ELENA-KfW
This new technical assistance facility has been launched by the European Commission European Commission The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and the general day-to-day running of the Union. With the Covenant of Mayors initiative, the European Commission - DG Energy endorses and supports the efforts deployed by local authorities in the implementation of sustainable energy policies. in cooperation with the German group KfW. It supports medium-sized investment projects of less than €50 million with a focus on carbon crediting.
ELENA-CEB
Developed by the European Commission European Commission The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and the general day-to-day running of the Union. With the Covenant of Mayors initiative, the European Commission - DG Energy endorses and supports the efforts deployed by local authorities in the implementation of sustainable energy policies. in partnership with the Council of Europe Development Bank, ELENA-CEB will provide technical assistance for the development of investment projects targeting social housing.
Smart Cities & Communities
Covenant Signatories Signatories Signatories represent cities, with different size from small villages to major metropolitan areas such as London or Paris, that have signed the Covenant of Mayors on a voluntary manner and are committed to implement sustainable energy policies to meet and exceed the EU 20% CO2 reduction objective through increased energy efficiency and development of renewable energy sources. having taken a political commitment to mitigate climate change and developed a holistic sustainable energy action plan Sustainable Energy Action Plan A Sustainable Energy Action Plan (SEAP) is the key document in which the Covenant signatory outlines how it intends to reach its CO2 reduction target by 2020. It defines the activities and measures set up to achieve the targets, together with time frames and assigned responsibilities. Covenant signatories are free to choose the format of their SEAP, as long as it is in line with the general principles set out in the Covenant SEAP guidelines. for their territories can also benefit from the technology component of Europe’s energy policy. The Smart Cities initiative will support a limited number of larger technology-focused projects of cities and regions featuring pioneering measures in sustainable use and production of energy as well as in mobility.
It will draw upon the other Strategic Energy Technology Plan (SET-Plan) initiatives, in particular the Solar Europe Initiative and European Electricity Grid Initiative, as well as on the EU public-private partnership for Buildings and Green Cars, established under the European Economic Plan for Recovery.
European Energy Efficiency Facility
A new European investment fund for sustainable energy projects is to be launched in 2011. This fund will use the unspent €146 million from the European Economic Recovery Programme, supplemented by co-funding from the European Investment Bank, in order to provide equity, guarantees and debt products for public authorities and entities acting on their behalf. The fund will focus on investments in buildings, local energy infrastructure, distributed renewable installations and urban mobility.
Municipal Finance Facility
The Municipal Finance Facility is an initiative of the European Commission European Commission The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union’s treaties and the general day-to-day running of the Union. With the Covenant of Mayors initiative, the European Commission - DG Energy endorses and supports the efforts deployed by local authorities in the implementation of sustainable energy policies. and the European Bank for Reconstruction and Development (EBRD) to develop and stimulate commercial bank lending to small and medium-sized municipalities and their utility companies in the EU countries who joined the EU in 2004 (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia with Bulgaria and Romania). The facility combines EBRD finance in the form of long-term loans and/or risk sharing.
Sustainable Energy Initiative
The European Bank for Reconstruction and Development (EBRD) supports municipal sustainable energy projects in the countries of its operation.
The areas of intervention (e.g. municipal energy infrastructure, transport, carbon market, etc.) target municipalities, local banks, Small and Medium Enterprises and other local actors.
With the political support of the European Commission - DG Energy. Website coordinated by the Covenant of Mayors Office.News | Agenda | Site map | RSS help | Credits | Legal