Investment Plan for Europe supports new fund to finance energy efficiency in buildings across the EU

CEPS 2021CEPS 2021

The European Investment Bank (EIB) has committed €30 million to the new EU-focused Solas Sustainable Energy Fund ICAV (SSEF). The EIB’s investment is backed by the European Fund for Strategic Investments (EFSI). With an overall target size of €200 million, the SSEF fund has now reached its first closing at €140 million. Its funding will support energy-saving business models focusing on the renovation of existing infrastructure across Europe, particularly of buildings. Projects in both the public and private sectors will be supported, including small and medium-sized businesses (SMEs), which face more challenges in securing finance. The SSEF also signed an agreement with the Private Finance for Energy Efficiency (PF4EE) support scheme, a joint initiative launched by the Commission via the LIFE programme and the EIB. One of the goals of the PF4EE is to encourage private institutional investors such as insurers and pension funds to invest in European energy efficiency infrastructure, particularly in SMEs. Commissioner for Energy, Kadri Simson, said: “Investing into energy efficiency, renewable energy generation and building renovation is at the core of the European Green Deal and key to bringing down energy bills. The Solas Sustainable Energy Fund will combine the financial support from EFSI and PF4EE to mobilise affordable private financing for investments in the energy performance of buildings, including onsite renewable energy production. The PF4EE guarantee will set the gold standard for equity investment fund initiatives and engage institutional investors in green assets. This will bring us one step closer to achieving the EU’s Green Deal ambition of becoming climate neutral by 2050.” EFSI is the main pillar of the Investment Plan for Europe, which has so far mobilised €546.5 billion of investment, benefitting over 1.4 million SMEs. A press release is available here.