Why & How
Inefficient buildings consume 40% of the world's energy and are responsible for nearly the same amount of emitted carbon. The NEW FINANCE project aims at accelerating new energy efficiency investments in public buildings equally involving stakeholders from public and private sectors. In that process we are faced with the next main challenges:
TECHNICAL: Lack of technical background and expertise to understand EE methods and technologies for reducing energy consumption or replacing fossil fuels with RES;
LEGAL: Lack of expertise to understand implementation of EE measures in public buildings;
ECONOMIC: Difficulties in demonstrating the cost-effectiveness of EE projects;
FINANCIAL: Difficulties in raising finance for investments. ERDF/public funding for new investments in EE and RES in public buildings is limited and mobilization of private funding is an additional challenge faced by local and regional players in particular;
AWARENESS: Additional awareness-raising on IPA territory will be ensured through the inclusion of Ministry of Construction in the project as associated partner acting as a project sponsor. The need to reinforce awareness raising of EE and RES.
In accordance with the challenges we will use the following methodology:
TECHNICAL: Expertise provided directly through the partnership consisting of energy agencies and development agencies who are experts in EE and who can fill building owners and finance sector in their role as facilitator;
LEGAL: Legal advice on national level is foreseen to support the partnership;
ECONOMIC: The challenge of the cost effectiveness of EE projects will be tackled by the development of a clear business case for EE and RES leading to bankable projects to benefit public building owners and the financial institutions expected to provide the private funding;
FINANCIAL: Budgetary limitations will be solved by creating strong alliances between public and finance sector which will lead to 5 new bankable lighthouse projects and therefore ensuring the necessary leverage factor with ERDF/public funds;
AWARENESS: The local and regional governments involved in the project deals with promotion and dissemination of innovative financial mechanisms and their effective replication on new territories. The Ministry of Construction, acting as a project sponsor, assures additional awareness-raising on IPA territory.