Commissioner Arias Cañete has announced that public money will be invested to attract private funding in two new instruments on energy efficiency and natural capital as well as in the Energy Union.
When presenting two new EIB instruments, “The Private Finance for Energy Efficiency” and “the Natural Capital Financing Facility”, Commissioner Arias Cañete announced that the financing method that will be used for the EFSI and for these instruments will also be applied in the Energy Union. The EFSI fund will allow for the investment of €21 billion public money in risky projects, thereby minimizing the risk for private investors and unlocking 15 times as much private financing. The other two aforementioned products will be based on the same principle. Under the “Private Finance for Energy Efficiency”, the EIB will have €80 million to provide loans, “credit risk protection to financial intermediaries” and to support technical experts. The EIB and EC’s budget for the “Natural Capital Financing Facility” amounts to €125 million which will be used to unlock investments in natural capital, such as environmental protection or eco-tourism.
Mr. Arias Cañete announced that by using public money to minimize risks and to attract private investments, the foregoing two instruments would act as pilot projects, not only for the upcoming EFSI but also for the investments across the five dimensions of the Energy Union.