Map Of Structured Financial Solutions For Citizen Finance Schemes for Energy Efficiency (CFs4EE Financing Schemes)
Citizen Financing EFSI Financing Investment Platforms - 17 July 2020
This guidance document aims to help CitizEE Pilot Regions to select a suitable Public Financing Instrument (PFI) to be set-up to support the development of their CFs4EE Financing Scheme for Energy Efficient Buildings. The document explores the different existing Public Financing Instruments (PFIs) that the CitizEE Pilot Regions can implement to build their CFs4EE Financing Scheme, with the objective of launching large scale investment program in the energy renovation of buildings and attracting greater levels of private‐sector investments, including Citizen Funding.
This guidance document aims to help the CitizEE Pilot Cases (Portugal, Belgium, Croatia and Lithuania) to select a suitable Public Financing Instrument (PFI), which they can implement to build their Citizen Financing Schemes for Energy Efficiency (CFs4EE) in the building sector. Therefore, different existing Public Financing Instruments were analyzed and selected with the objective of launching large scale investment programs in the energy renovation of buildings and to attract greater levels of private-sector investments, including Citizen Funding. The guidance document has been conceived as a roadmap/process to evaluate and select, which of the Structured Financial Solutions is the most appropriate for the Pilot Regions Financing Scheme scope and market situation.
Methodology used to develop the Structured Financial Solutions Map:
In order to develop the Structured Financial Solution Map, a first desk research was conducted by which the team collected, compiled and analyzed the documentation and reports available on Public Financing Instruments (PFIs). A benchmark of these PFIs was then carried out in order to identify the most effective and the most adapted to the situation of the CitizEE Pilot Regions.
In addition to that, the study considered the main outcomes of a former analysis on the set-up of Investment Platforms supported by the European Fund for Strategic Investments. In the frame of a last step, the study has analyzed how financing instruments could be structured within the specific architecture of an Investment Platform, including Citizen Funding, to develop a Structured Financing Map.
Study-result – eight different Structured Finance Solutions:
The main result of the study is a Map of Structured Financial Solutions for Citizen Financing Schemes for Energy Efficiency. It mainly presents a series of eight different Structured Finance Solutions that meet the potential needs of the Pilot Regions. These solutions include the leverage of citizen financing, which can be used by the Pilot Regions according to their market conditions, the main financial barriers and market failures. Moreover, these solutions reflect the policy objectives within these Pilot Regions.
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