August 16, 2021

Innovative Financing Schemes for Sustainable Energy Investments - LIFE-2021-CET-INNOFIN


Main purpose: The EU wishes to support organisations in setting up innovative financing schemes for (sustainable) energy investments by means of an action grant.

To realise the European Green Deal, the objective to make the EU climate neutral by 2050, the EU requires an increased amount of investment into projects that increase energy efficiency. The participation of private sector investors in these projects is key to the success of the Green Deal. The EU therefore aims to support organisations that create (innovative) financing schemes that attract private sector investors into energy efficiency enhancing projects. The financing schemes must operate at a regional or national level, must be expandable and/or replicable.

The financing schemes can involve various types of organisations and ownership structures, as well as diverse financing structures, including, but not limited to:

  • Models applying different financing instruments such as tailored grants, equity, debt, mezzanine financing, refinancing mechanisms, guarantees or other de-risking instruments.
  • Specific finance models for the energy retrofit of buildings in line with the “Renovation Wave”, addressing property or rental markets and, in particular, deep energy renovation.
  • Specialised securitization vehicles and green bond schemes.
  • Local investment structures, including citizen financing (e.g. crowdfunding) for energy efficiency and other forms focusing on the role of prosumers or applying complementary local “currencies” at community scale to reinforce short circuits and local supply chains, including smart contracts.
  • Tailored financing solutions integrating existing market-based instruments relevant for energy efficiency (e.g. tradable certificate schemes, carbon finance instruments, including those under the European Emissions Trading System, CO2/energy taxes, energy efficiency obligations e.g. under Art. 7 of EED or energy service/performance contracts).
  • Dedicated schemes based on aggregators or clearing houses (at regional or national level), which facilitate blending of different public and/or private funding sources, matching of demand and supply of energy efficiency finance and/or project development.

Programme: Programme for Environment and Climate Action (LIFE)

Institution: European Climate, Infrastructure and Environment Executive Agency (CINEA)

Deadline: January 12, 2022

Budget: EUR 5,500,000

Financing type: Action grant

Who is eligible: Single public- and private sector legal entities (consortia are eligible too)

The call for proposals is found here: Funding & tenders (europa.eu)

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