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Cohesion Policy support for Sustainable Energy

Intelligent Energy Europe boosting regional competitiveness through

sustainable energyOpen Days Workshop

Brussels5 October 2010

Maud SKÄRINGEREuropean CommissionDirectorate-General for Regional Policy

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Solidarity in practice: The EU Cohesion Policy

2007-2013: 347 billion euro invested for less well-off regions or citizens in infrastructure, business, environment and training of workers

Regional Fund

Social Fund

Cohesion fund

Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent on this objective.

Regional competitiveness and employment objective.

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Cohesion Policy & Sustainable Growth

Win-win policy:

- Positions EU as lead market in green technologies

- Creates new and sustainable jobs in local economies (growth)

- Improves and protects the environment

‘EnvironmentalServices’

€ 54 billion

Low Carbon

Economy€ 48 billion

Eco-Innovation€ 3 billion

€ 105 billion in total

30% of total Cohesion Policy funds 2007-2013

3 times more than in 2000-2006 (€ 37 billion)

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Petroleum products2%

Natural gas6%

Electricity (TEN-E)3%Electricity

3%

Natural gas (TEN-E)3%

Wind7%

Solar 10%

Biomass17%

Hydroelectric, geothermal and other

10%

Energy efficiency, co-generation, energy

management39%

CP allocations to Energy Sector

2007-13 Total = € 10.8 billion (3.1 % of total)

€ 9 billion sustainable energy. € 1.8 billion traditional energies & interconnectors.

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Allocations to Energy Sector as % of total CP allocations per MS

2007-2013

0%

1%

2%

3%

4%

5%

6%

7%

RES

EE

Traditional Energy

TEN-E

Source: Infoview 2009

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Energy Efficiency in the “Recovery Package”• Amendment to ERDF regulation

(May 2009)

• Up to 4% of the national ERDF allocation can go to energy efficiency and renewable energy in housing, potentially € 8 billion

• Member States define eligible categories of existing housing, to support social cohesion

• Further regulatory amendment recently into effect, to facilitate the use of innovative financial instruments in this area

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Why focus on Sustainable Energy in Buildings?

• Building sector, a win-win opportunity:– Regional development / social cohesion /

energy savings• 41 % of EU final energy consumption in

buildings (vs. 32% transport & 28% industry) and 36% of CO2 emissions

• Single most cost-effective sector for energy reduction: Estimated 30% reduction potential by 2020

• New buildings may represent only about 1% of total stock focus on existing buildings

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Green energy for the hospital of Szeged (HU)

• Old steam boilers & external pipe system replaced

• Computer controlled energy systems

• 800 m² of solar panels

• New system = 20% energy saving

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June 2010 – Amendment of Reg (EC) 1083/2006: Article 44 includes a new paragraph foreseeing support to Financial Engineering Instruments for Energy Efficiency and the use of Renewable Energy in buildings, including existing housing

Financial engineering interventions related to energy efficiency improvements and the use of renewable energy in existing housing are no longer limited to urban areas (i.e. projects included in an integrated plan for sustainable urban development) and can be supported anywhere throughout the 27 Member States

Enlarging the scope of Financial Enlarging the scope of Financial Engineering interventionsEngineering interventions

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• Sustainability by recycling funds over the long-term

• Leverage effect for EU Structural Funds which can be combined with private capital

• Stronger incentives towards better performance

• New sources of expertise and know-how• Development and modernisation of financial

markets• Interesting examples from Estonia and Lithuania

Key Advantages of Financial Key Advantages of Financial EngineeringEngineering

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Strategic Report 2010: Different rates of progress in key themes

GL1: Attractive places

GL2: Improving knowledge & Innovation

GL3: More and better jobs

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Progress Energy priorities

Codes 33-43: € 10,8 bn available

Average project selection 13,2% = 1,4 bn €

Good progress – CZ, LT

0,00

0,50

1,00

1,50

2,00

2,50

PL IT CZ GR RO FR DE LT ES HU UK PT BG SK SI LV EE EU26

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

€ bn % project selected

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Current situationFurther opportunities

• Substantial funds still available during 2007-2013 period: By autumn 2009, across the EU 13% project selection rate in the area of energy vs 27% on average for Cohesion Policy as a whole

• Regulatory changes – Member States encouraged to use the new possibilities

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More information / Applying for funding

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

Regions for Economic Change Conference May 2010 Energy efficiency workshop (2A):

http://ec.europa.eu/regional_policy/conferences/sustainable-growth/programme_en.cfm?nmenu=4

List of Cohesion Policy funds Managing Authorities:http://ec.europa.eu/regional_policy/manage/authority/authority_en.cfm

Practical Guide to EU funding opportunities for Research and Innovation:

http://cordis.europa.eu/eu-funding-guide/home_en.html