EE Finances » Financing Energy Efficiency » Transnational methodological framework » Funding sources for energy efficiency » European level » ESIF – European Structural and Investment Funds

ESIF – European Structural and Investment Funds

There are two major funds covered with ESIF umbrella - The European Regional Development Fund (ERDF)and The Cohesion Fund (CF), they both offer wide range of financial support transformed into national operational programmes relevant to municipal and regional energy efficiency priorities. Municipalities interested in accessing the ERDF and CF resources should check the details of the operational programmes available in their countries. The exhausting list of national programmes supported by ESIF is a part of the BOOSTEE-CE Transnational Energy Efficiency Financing Strategy.

ERDF and CF financial support is provided in a form of grants or financial instruments (loan, guarantee, equity, quasy-equity, however, not relying only on the external support is strongly recommended and municipalities and regions are encouraged to use also other financial instruments to mobilise the private investments.

ERDF and CF can be used in integrated packages at local, regional or national level through the use of territorial integrated instruments such as  Integrated Territorial Investments (ITI).9

Cohesion Fund

The Cohesion Fund encourages investments in priority trans-European transport networks and investments related to energy or transport that benefit the environment in terms of energy efficiency, use of renewable energy, developing transport and supporting intermodal transport.

The CF has an overall budget of €63 billion for 2014-2020. This support is provided to Member States whose Gross National Income per inhabitant is less than 90 % of the EU average. For the 2014-2020 periods, the Cohesion Fund is available in Bulgaria, Croatia, Cyprus, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia.11

Financial instruments can thus contribute to the achievement of the following objectives of the CF:

  • promoting the production, distribution and use of energy derived from renewable sources
  • supporting energy efficiency and smart energy management
  • investing in the waste sector and water sector
  • improving the urban environment, including decontamination of brownfield sites
  • supporting a multimodal Single European Transport Area
  • developing and improving environmentally-friendly (including low-noise) and low-carbon transport systems in order to promote sustainable regional and local mobility
  • developing and upgrading comprehensive, high quality rail, river and sea transport, intermodal transport systems and their interoperability

In order to be financed by CF the project has to be in line with the operational programme for each country region/area. Applications can be done to the national managing authorities.10

It is also possible to use the CF in the form of financial instruments. For more info refer to the section 2.4 Intermediaries.

The European Regional Development Fund

The European Regional Development Fund (ERDF) supports economic growth, job creation and reduction of regional disparities. The ERDF focuses its investments on several key priority areas:

  • Promoting business investment in Research & Innovation
  • Extending broadband deployment and the roll-out of high-speed networks and developing Information and Communication Technology (ICT) products, services and e-commerce
  • Supporting the capacity of small and medium-sized enterprises (SMEs) to grow and to engage in innovation processes, including developing new business model;
  • Promoting the production and distribution of renewable energy, of energy efficiency and renewable energy in enterprises, in public infrastructure and housing
  • Investments for adaptation to climate change
  • Investing in the waste and water sectors
  • Improving the urban environment, including regeneration of brownfield sites
  • Supporting industrial transition towards a low-carbon economy

Supporting multimodal and environmentally-friendly transport and regional mobility12

Organisations that can benefit from ERDF involve public bodies, SMEs, universities, associations, NGOs and voluntary organisations, depending on the operational programme.

Focus areas depend on the operational programmes. In order to be financed by ERDF the project has to be in line with the operational programme for each country area. Applications can be done to the national managing authority.10

It is also possible to use the CF in the form of financial instruments. For more info refer to the section 2.4 Intermediaries.