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.

The guidance document builds on the previous analysis on the set-up of EFSI-backed Investment Platforms (Deliverable D2.1. Institutional, organizational and procedural report) and the market analysis developed by the Pilot Regions (Deliverable D2.11. Report on market characterization: segment and boundaries analysis) and supports Pilot Regions in analyzing how financing instruments could be structured within an Investment Platform that can address the market failures and potential related financing gaps existing within the Energy Efficient Buildings sector, and particularly, those existing within the Pilot Regions markets. The result is a Structured Financial Solutions Map, a set of eight different Structure Financial Solutions able to answer the potential needs of the Pilot Regions, including the leverage of 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 CFs4EE Financing Scheme scope and market situations.

Methodology used to develop the Structured Financial Solutions Map
Task 3.2 Benchmark and evaluation of existing and addressable CFs4EE Financing Schemes was to study and benchmark Public Financing Instruments (PFIs) addressing the scaling up of investment in the field of Energy Efficient Buildings in order to have a clear understanding of their mechanisms, their objectives and characteristics, their design and implementation requirements, their market impact and the lessons learned on past projects. The study was first based on a desk research by which the team collected, compiled and analyzed the documentation and reports available on Public Financing Instruments (PFMs). A benchmark of these PFMs was then carried out in order to identify the most effective and the most adapted to the situation of the CitizEE Pilot Regions. Building on the previous analysis on the set-up of EFSI-backed Investment Platforms (Deliverable D2.1. Institutional, organizational and procedural report), the study has finally analyzed how financing instruments could be structured within the specific architecture of an Investment Platform, including Citizen Funding, in order to develop a Structured Financing Solutions Map to be used by the Pilot Regions in the evaluation of the CFs4EE Financing Scheme. The result is a set of eight different Structured Financial Solutions able to answer the potential needs of the Pilot Regions, including the leverage of Citizen Funding, to be potentially deployed by the Pilot Regions depending their market conditions, the key financial barriers and market failures to be removed and the policy objectives within those Pilot Regions.
The building blocks used for the analysis and the evaluation process are defined in the following figure. They are further described in the document.

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