financial instruments – overview and advisory services energy and managing authorities (ema)...
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Financial Instruments –Overview and advisory services
Energy and Managing Authorities (EMA) NetworkBrussels, 17 March 2015
Robert PERNETTAPolicy Analyst
European CommissionDirectorate-General for Regional and Urban Policy
1
Principles on financial instruments
Types of financial instruments
Loans Guarantees Equity
Tailor made 'Off-the shelf' EU level
Addressing lack of available financing
Providing financing at favourable conditions
Implementation options allowing for standardisation and customising
Ways to implement financial
instruments
Advantages of financial
instruments
Leverage effect Revolving nature Better quality of
projects
Increasing efficiency and effectiveness of EU funding
State of play in the energy sector
2007-2013
(as of end of 2013)
12 Member States
25 funds
€ 590m paid to funds
€ 254m paid out
Only energy efficiency and urban development
Limited geographic coverage
Slow implementation
Low leverage
BUT first positive examples
2014-2020
(preliminary information)
20 Member States
Target: 20% of allocations to 'low carbon economy'
All projects eligible under Cohesion Policy funds
Accelerated implementation
More sophisticated products
Higher leverage
Ex-ante assessment
Why?
When?
Evidence and informed decision making by managing authorities
No formal deadline
Can be prepared in stages
Coherent documents with all elements must be submitted to monitoring committee
Ex-ante assessment to be updated when FI are changed or expanded
What?Provide evidence of Adequacy of the envisaged FI against needs Expected contributions of the policy objectives
Off-the-shelf instruments
What are off-the shelf instruments?Financial instruments complying with the standard terms and conditions laid down by the Commission
Help to accelerate implementation
Learn and build on the experience from 2007-2013
Key advantages
State aid compatibility
Governance structures
Based market practise
Full pass on of advantage to final beneficiary
Minimum leverage ensured
Managing AuthorityManaging Authority
Holding Fund Holding Fund
Financial products
Specific fund managed by financial intermediary Specific fund managed
by financial intermediary
Final recipientsFinal recipientsRenovation Loan based on a Risk sharing loan model
Urban Development Fund (in preparation)
Useful sources
Off the shelf instruments (Annexes to Implementing Act 2014/964/EU)
• http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2014.271.01.0016.01.ENG
fi-compass advisory platform• http://www.fi-compass.eu