European Commission launches energy efficiency fund

The launch of a European Energy Efficiency Fund has recently been announced in Brussels.

The announcement was made by the European Commission, the European Investment Bank, the Cassa Depositi e Prestiti and the Deutsche Bank. The Fund will provide financing within the industry to organisations with commercially viable energy efficiency and renewable energy projects within the EU.

The Fund was started up with existing unspent funds from the European Energy Programme for Recovery. Funding will be provided to projects that will assist the EU in meeting their objective to reduce greenhouse gas emissions by 20% by 2020 and to also increase the production and use of renewable energy by 20%.

The Fund has been made up as follows:

· ?125 million invested by the European Commission.

· ?75 million from the European Investment Bank.

· ?60 million from the Cassa Depositi e Prestiti.

· ?5 million invested by the Deutsche Bank (who is also acting as Investment Manager of the Fund).

The Fund combines two levels of risk, the first being the Junior Tranche of low risk and then the Senior Level with Senior Share Investment with more return.

Caio Kock-Weser as Vice Chairman of Deutsche Bank, says: ?By working together to address climate change, the public and private sector can jointly achieve much more than each by himself. We are proud to have been selected as the manager of the European Energy Efficiency Fund, and look forward to announcing the first investments, in collaboration with our partners.?

Source: Green Energy UK