EU projects to generate €1bn for climate change adaptation
Two new pilot projects launched to channel investment towards energy efficiency, wildlife preservation, and infrastructure improvements to adapt to climate change
The EU has launched two new pilot projects with the aim of channeling more than €1 billion of investment towards energy efficiency, wildlife preservation, and infrastructure improvements to adapt to climate change.
The two financial instruments are designed to demonstrate how investments in low-carbon technology and resource efficiency can achieve returns, while furthering the EU's 2020 resource efficiency, biodiversity, and climate action ambitions.
The Private Finance for Energy Efficiency scheme was launched on Monday and will use €80 million of European Commission funds to leverage spending eight times as large.
The second fund - the Natural Capital Financing Facility - will access a budget of between €100m and €125m to provide loans and investments to support a range of initiatives including green infrastructure projects, biodiversity preservation, and climate change adaptation.
These two projects are expected to unlock more than €1 billion of investment, according to media reports.
The announcement was made with the Commission due to publish a strategy for a stronger energy union next week that will feature improved grid connections, security of fuel supply and greater energy efficiency.
Miguel Arias Cañete, EU Commissioner for Climate Action and Energy, said: "With these new financial instruments, we are putting the money where it matters. This is a contribution to protecting the climate, saving energy for our citizens and making Europe less dependent on imported energy. This is what building and Energy Union is all about."
The funds are intended to unlock investment and lay the groundwork for a more comprehensive scheme, the European Fund for Strategic Investment, designed to turn €21bn of EU and European Investment Bank (EIB) funding into around €315bn of public and private sector investment.
The extensive plan was presented by Commission President Jean-Claude Juncker in November 2014 and a third of the funds will be energy related.
The broader investment plan is due to be endorsed by governments in June.