The EUCF is a European initiative to support municipalities, local authorities and their groupings across Europe to develop investment concepts to accelerate investments in sustainable energy. In form of a € 60k grant, the EUCF finances services and activities to support the development of the investment concept, such as (technical) feasibility studies, market analysis, stakeholder analysis, legal, economic and financial analysis, risk analysis and the coordination and organization activities. The grant is hence not meant to directly finance investments. It is used to access services and develop an investment concept, which might become a door-opener for many follow-up investments (from ELENA, to PDAs to private investments).
FACING THE GAP
Local authorities and their groupings have made great commitments to significantly reduce their energy consumption and greenhouse gas emissions. However, when trying to implement their ambitious climate and energy action plans, they often face financial constraints, as well as a lack of capacity to access the right financing. The EUCF steps in here and supports municipalities and local authorities to transform their climate and energy action plans into real investment in developing credible, robust and sufficiently mature investment concepts. Such concepts, which should include the identification of potential project pipelines, legal analysis, governance analysis, basic financing strategy, and roadmaps for implementation, are a prerequisite to accessing different sources of funding.
BRIDGING THE GAP
Local authorities and their groupings have a huge potential to drive energy transition in Europe. With tremendous potential to build comprehensive sustainable energy investment programs, they can play a key role in pooling smaller projects into larger investment portfolios and in mobilizing significant financial resources for the energy transition. The EUCF will bridge the gap and unlock this local potential to enable municipalities in Europe to develop relevant investment concepts.
The initiative bridges two fundamental barriers for sustainable energy investments at the local level:
Lack of financial and legal capacity of local authorities to transform their long-term energy and climate strategies (e.g. SEAPs, SECAPs etc.) into appropriate investment concepts.
Lack of aggregation of fragmented smaller projects (for example in the building sector) and thus lack of attractiveness for the financial sector.
THE JOURNEY AHEAD
Are you a European local authority or group of local authorities trying to achieve your ambitious climate and energy action plan? Benefit from tailor-made, fast and simplified support and access the grant of €60,000 to develop your investment concept - an initial step towards a fully-fledged business and financial plan, which facilitates the subsequent mobilisation of (local) investment in energy efficiency and renewable energy. Sources of funding may come from the private sector, but also from other EU-funded instruments such as the European Fund for Strategic Investments (EFSI), the European Structural and Investment Funds (ESIF), various Project Development Assistance (PDA) facilities, such as the ELENA facility of the European Investment Bank, or various national investment platforms.
Embark upon the EUCF Journey!
WHAT are EUCF objectives ?
The ultimate objective is to build a substantial pipeline of sustainable energy investment projects across municipalities in Europe. Delivering this will require organisational, technical and financial innovation, in particular to bridge the capacity and capability gap for small and medium-sized municipalities.
The specific objectives of the EUCF are to:
Provide hands-on locally rooted technical and financial expertise, inspired by ‘best in class’ European practice, to cities to deliver credible and scalable investment projects, which should trigger public and private investment;
Build the capacity of municipal staff to develop substantial project pipelines and provide them with tools, networking and knowledge transfer opportunities, which will facilitate and accelerate the IC implementation, including via innovative financing mechanisms and project aggregation.
Facilitate access especially for small and medium-sized municipalities to private finance, EU funding streams and similar facilities, such as the European Structural and Investment Funds, the H2020 Project Development Assistance and the European Investment Bank’s (EIB) European Local Energy Assistance) and advisory services such as the EIB Advisory Hub to realise and amplify the expected investments.
Use the successful IC and the knowledge of EUCF beneficiaries to reach out to more than 10,000 cities and communities, encourage replication and catalyse further action across European cities.
Vision & Mission
The vision of the EUCF is one where European cities have their say on how the EUCF financial and technical support will be used to meet their needs and help them overcome the barriers they face in financing and implementing their ambitious energy and climate strategies.
We would like to encourage cities to be as bold as possible in addressing the fundamental changes that are needed to accelerate the energy transition.