Objective of the Fund
As energy demand in the member states of the European Union is still raising climate change mitigation by improving energy efficiency and renewable energy to reduce greenhouse gas emissions becomes increasingly important. The growing energy demand of private households, transport and service sectors is a driving force for CO2 emissions in the European Union economies and has to be addressed. The EU countries have agreed on the 2030 Framework for climate and energy, including EU-wide targets and policy objectives for the period between 2020 and 2030. These targets aim to help the EU achieve a more competitive, secure and sustainable energy system and to meet its long-term 2050 greenhouse gas reductions target by cutting greenhouse gas emissions by 40%, increasing the use of renewable energy by at least 27% and improved energy efficiency by at least 27%.
The European Energy Efficiency Fund (eeef) therefore aims to support the goals of the European Union to promote a sustainable energy market and climate protection.
1) Contribute to the mitigation of climate change
eeef contributes with a layered risk/return structure to enhance energy efficiency and foster renewable energy in the form of a targeted private public partnership, primarily through the provision of dedicated financing via direct finance and partnering with financial institutions. Investments should contribute significantly towards energy savings and the reduction of greenhouse gas emissions to promote the environmentally friendly use of energy. Maximizing its impact, eeef facilitates investments in the public sector, which offers an enormous potential, but in which projects are often hindered or decelerated due to budget restrictions and lack of experience with this kind of investments.
2) Achieve economic sustainability of the Fund
eeef pursues its environmental goals by offering funding for energy efficiency and small scale renewable energy projects. The Fund observes the principles of sustainability and viability, combining environmental considerations and market orientation. It does so by financing economically sound projects, allowing for a sustainable and revolving use of its means.
3) Attract private and public capital into climate financing
By achieving the first two objectives, eeef aims to attract additional capital into climate financing. The environmentally and socially responsible way of conducting its business, the innovative public-private partnership structure and the experience of its stakeholders will be used to bring more capital into an area whose financial means are currently insufficient to strongly contribute to the mitigation of climate change.