A Joint Declaration on energy efficiency financing and the European Energy Efficiency Financing Coalition (Coalition) has been signed today by the Commissioner for Energy Kadri Simson and the Energy Ministers of all 27 EU Member States in the margins of the TTE Council. The Joint Declaration underlines the importance of mobilising private investment for energy efficiency and of creating a long-term, viable funding framework for energy efficiency investments.
The Joint Declaration marks the first step towards setting-up the coalition, which establishes a form of trilateral cooperation between the Commission, Member States, and Financial Institutions. The objective of the coalition is to create a favourable market environment for energy efficiency investments and to scale up the private funding needed to contribute to the achievement of the European Union’s energy and climate targets for 2030 and 2050.
Building on the successful findings and legacy of the Energy Efficiency Financial Institutions Group (EEFIG), the Coalition will be organised in three different workstreams: a political level, an expert group and national hubs, namely specific working groups to be developed at national level to identify energy efficiency financing solutions for each market.
The Coalition finds its legal base in Article 30 of the Directive (EU) 2023/1791 on energy efficiency (EED). Article 30 aims to increase the cost-effectiveness of public budget support and sustain private investments in energy efficiency measures. On 12 December 2023, the Commission adopted a Recommendation to Member States in order to support Member States in transposing and implementing Article 30.
Commissioner for Energy, Kadri Simson said:
'By signing the Joint Declaration today, we underline the fundamental role of energy efficiency in our efforts to accomplish our energy transition and decarbonise our economy. Scaling up private investments for energy efficiency is of utmost importance and the European Energy Efficiency Financing Coalition will play a pivotal role in this regard. Therefore, I am very pleased that today we give the Coalition the strong political endorsement that it needs to be successful.'
Next Steps
A formal official launch event of the European Energy Efficiency Financing Coalition will be held at the beginning of 2024. In the meantime, the Commission will launch a call for participation for financial institutions and other relevant stakeholders in the field of energy efficiency financing.
Background
The Joint Declaration on energy efficiency financing and the European Energy Efficiency Financing Coalition is a statement whereby the Commission and signatory Member States acknowledge the need to raise more private investment for energy efficiency projects and commit to setting-up the European Energy Efficiency Financing Coalition (Coalition), a framework for cooperation and support for action with the Commission and financial institutions.
The Coalition was announced in the ‘EU Save Energy’ Communication, part of the REPowerEU plan, and it is responds to the call made European leaders to step up investments in energy efficiency by the European Council in its conclusions of 20-21 October 2022, and of 15 December 2022. The legal basis of this initiative is Article 30(7) of Directive (EU) 2023/1791 on energy efficiency.
The initiative builds upon the results of the Energy Efficiency Financial Institutions Group (EEFIG), created by the Commission and the United Nations Environment Programme Finance Initiative (UNEP FI), which served as a joint platform for cooperation and dialogue with financial institutions on energy efficiency and provided the Commission with concrete studies and recommendations on the way forward for energy efficiency financing. UNEP FI will remain a privileged partner of the Coalition.
Related links
- Joint Declaration on energy efficiency financing and the European Energy Efficiency Financing Coalition (Coalition)
- Commissioner Simson speech to today’s signature event
- The Energy Efficiency Financial Institutions Group (EEFIG)
- De-risking investments
- Energy efficiency directive
- Commission publishes recommendation on energy efficiency financing under new Directive
Details
- Publication date
- 19 December 2023
- Author
- Directorate-General for Energy