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Call key data
Crowding in private finance
Funding Program
LIFE - sub-programme “Clean Energy Transition”
Call number
LIFE-2024-CET-PRIVAFIN
deadlines
Opening
18.04.2024
Deadline
19.09.2024 17:00
Funding rate
95%
Call budget
€ 5,250,000.00
Estimated EU contribution per project
€ 1,750,000.00
Link to the call
Link to the submission
Call content
short description
The topic aims to increase the amount of private finance allocated to energy efficiency and small-scale renewable energy sources by establishing innovative financing schemes for investments in sustainable energy.
Call objectives
Significant investments in energy efficiency and small-scale renewables need to be mobilised to achieve the ambition set by the European Green Deal and the objective to reduce EU dependence on fossil fuel imports set out in the REPowerEU Plan. In order to meet the required level of investments, it is necessary to progressively maximise the mobilisation of private capital, using public funds as a catalyst, and to put in place an enabling regulatory framework. This has been at the heart of the works of the Energy Efficiency Financial Institutions Group (EEFIG) and will remain a central objective of the recently established European Energy Efficiency Financing Coalition. In addition, the revised Energy Efficiency Directive and Energy Performance of Buildings Directive aim to increase the cost-effectiveness of public funding and the mobilisation of private investments in energy efficiency measures, including by promoting innovative financing mechanisms. National Energy and Climate Plans provide a solid framework for Member States to evaluate and report on investment needs and gaps to achieve their 2030 national energy and climate targets, including regarding the mobilisation of private investments. The Smart Cities Marketplace offers an investor matchmaking platform for investments in clean energy, ICT solutions and sustainable mobility.
While significant public sector expenditure is allocated to leverage private finance for energy efficiency and small-scale renewables (e.g. through the InvestEU facility), most private investors still view this type of investments as risky, complex and/or insufficiently profitable. This is due to the limited availability of investment opportunities which comply with the requirements of financial institutions in terms of size, scale, standardisation and transaction costs. There is a need to set up and roll-out private financing schemes which can be expanded and/or replicated at scale, and contribute to the national strategies to achieve the 2030 energy efficiency targets and the building renovation policy objectives. These schemes have to be adapted to the specificities of energy efficiency investment profiles, as well as those of small-scale renewables, in buildings, SMEs, district heating and other relevant sectors.
The financing schemes can be initiated by private sector stakeholders or local and regional authorities, as well as other types of actors.
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Expected effects and impacts
Proposals should present the concrete results which will be delivered by the activities, and demonstrate how these results will contribute to the topic-specific impacts. This demonstration should include a detailed analysis of the starting point and a set of well-substantiated assumptions, and establish clear causality links between the results and the expected impacts.
Proposals should demonstrate how they will contribute to deliver adequately tailored innovative financing schemes that are operational and ready to finance investments, and the impact that this will have on investments in energy efficiency and small-scale renewables.
Proposals should quantify their results and impacts using the indicators provided for the topic, when they are relevant for the proposed activities. They should also propose indicators which are specific to the proposed activities. Proposals are not expected to address all the listed impacts and indicators. The results and impacts should be quantified for the end of the project and for 5 years after the end of the project.
The indicators for this topic include:
- Number of investors and project developers using the financing scheme.
- Number of investment projects processed/covered by the financing scheme.
- Volume of investments processed/covered by the financing scheme.
- Number of households and/or businesses benefitting from the financing scheme.
- Investments in sustainable energy (energy efficiency and renewables) triggered by the project (cumulative, in million Euro).
- Investments in building energy renovation triggered by the project (cumulative, in million Euro).
- Average % of energy savings targeted by investment projects.
Proposals should also quantify their impacts related to the following common indicators for the LIFE Clean Energy Transition subprogramme:
- Primary energy savings triggered by the project in GWh/year.
- Final energy savings triggered by the project in GWh/year.
- Renewable energy generation triggered by the project (in GWh/year).
- Reduction of greenhouse gases emissions (in tCO2-eq/year).
- Investments in sustainable energy (energy efficiency and renewable energy) triggered by the project (cumulative, in million Euro).
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Expected results
Proposals should clearly focus on tailored, market-oriented solutions to crowd in private finance at scale for sustainable energy investments, understood as investments in energy efficiency and/or small-scale renewable energy sources and storage.
Proposals should set-up innovative financing schemes leveraging private finance for sustainable energy investments, with a dedicated and clear focus on energy efficiency, in at least 1 eligible country with a clear ambition and effort towards expansion in additional eligible countries. The financing scheme should be operational by the end of the project, whereas the related investments may be implemented after project completion.
The financing schemes can involve, for example, but are not limited to:
- Equity, debt, mezzanine financing, potentially combined with non-reimbursable grants (“blending”).
- Local or regional investment funds, including blended financing. Guarantees, risk-sharing, insurances or other de-risking instruments.
- Energy services such as energy performance contracting, efficiency as a service, and variants thereof, if used to finance the investments.
- On-bill, on-tax and building-based financing, where the debt is attached to the energy meter or the building rather than the household or company.
- Schemes complementing, with a dedicated financing component, already existing local and regional technical assistance facilities, in particular integrated home renovation services.
- Schemes targeting the secondary market, including refinancing mechanisms, specialised securitisation vehicles and green bond schemes.
- Local investment structures, including citizen financing (e.g. crowdfunding) for energy efficiency.
- Market-based instruments relevant for sustainable energy (e.g. carbon finance instruments, energy efficiency obligations, etc.).
- Brokering, aggregation or clearing houses, which facilitate matching of demand and supply of sustainable energy finance.
Proposals should take into account all the following elements:
- Establish an innovative, operational financing scheme for energy efficiency and/or integrated renewables in at least 1 eligible country. Proposals can build on and/or upscale innovative financing schemes successfully tested previously.
- Address the provision of finance as well as the structuring of demand, in particular at regional and national level.
- Define the target region(s) and sector(s) and justify how the proposed scheme is innovative and complements available funding schemes.
- Clearly demonstrate the business case and financial viability of the proposed scheme (including e.g. market analysis, investment sizes targeted, transaction and management costs, expected energy/cost savings and other returns, etc.).
- Plan replication and/or rollout of the scheme envisaged beyond the region(s) targeted for the establishment, including the analysis of legal and market conditions for replication.
Proposals should demonstrate support of the targeted stakeholder groups and present in a detailed manner how they will be involved throughout the project.
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Eligibility Criteria
Regions / countries for funding
Moldova (Moldova), Iceland (Ísland), North Macedonia (Северна Македонија), Ukraine (Україна)
eligible entities
Education and training institution, International organization, Non-Profit Organisation (NPO) / Non-Governmental Organisation (NGO), Other, Private institution, incl. private company (private for profit), Public Body (national, regional and local; incl. EGTCs), Research Institution incl. University, Small and medium-sized enterprise (SME)
Mandatory partnership
Yes
Project Partnership
Proposals must be submitted by at least 3 applicants (beneficiaries; not affiliated entities) from 3 different eligible countries.
In order to be eligible, the applicants (beneficiaries and affiliated entities) must:
- be legal entities (public or private bodies)
- be established in one of the eligible countries, i.e.:
- EU Member States (including overseas countries and territories (OCTs))
- non-EU countries:
- listed EEA countries and countries associated to the LIFE Programme (associated countries) or countries which are in ongoing negotiations for an association agreement and where the agreement enters into force before grant signature (list of participating countries)
- the coordinator must be established in an eligible country
Entities from other countries (not listed above) are exceptionally eligible, if the granting authority considers their participation essential for the implementation of the action (see work programme).
Natural persons are NOT eligible (with the exception of self-employed persons, i.e. sole traders, where the company does not have legal personality separate from that of the natural person).
International organisations are eligible. The rules on eligible countries do not apply to them.
EU bodies (with the exception of the European Commission Joint Research Centre) can NOT be part of the consortium.
Entities which do not have legal personality under their national law may exceptionally participate, provided that their representatives have the capacity to undertake legal obligations on their behalf, and offer guarantees for the protection of the EU financial interests equivalent to that offered by legal persons.
other eligibility criteria
Financial support to third parties is not allowed under Call LIFE-2024-CET except for topic LIFE-2024-CET-SAP.
Additional information
Topics
Relevance for EU Macro-Region
EUSAIR - EU Strategy for the Adriatic and Ionian Region, EUSALP - EU Strategy for the Alpine Space, EUSBSR - EU Strategy for the Baltic Sea Region, EUSDR - EU Strategy for the Danube Region
UN Sustainable Development Goals (UN-SDGs)
Additional Information
Proposals must be submitted electronically via the Funding & Tenders Portal Electronic Submission System (accessible via the Topic page in the Search Funding & Tenders section. Paper submissions are NOT possible.
Proposals must be complete and contain all the requested information and all required annexes and supporting documents:
- Application Form Part A — contains administrative information about the participants (future coordinator, beneficiaries and affiliated entities) and the summarised budget for the project (to be filled in directly online)
- Application Form Part B — contains the technical description of the project (to be downloaded from the Portal Submission System, completed and then assembled and re-uploaded)
- Part C (to be filled in directly online) — contains additional project data and the project’s contribution to EU programme key performance indicators
- mandatory annexes and supporting documents (templates available to be downloaded from the Portal Submission System, completed, assembled and re-uploaded):
- detailed budget table (mandatory Excel template available in the Submission System)
- participant information including previous projects, if any (mandatory template available in the Submission System)
- for topic LIFE-2024-CET-PDA: table of investments (mandatory template available in the Submission System)
- optional annexes: letters of support
Proposals are limited to maximum 65 pages (Part B).
Call documents
LIFE-2024-CETLIFE-2024-CET(1462kB)
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