Investor Confidence Project Considered Best Practice For Energy Efficiency Financing

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large building by 簡単な絵 via flickr

The ‘Winter Package’, a significant energy policy update published by the European Commission, has described the Investor Confidence Project Europe (ICP Europe) as a ‘best practice’ to maximise investment in buildings needing energy efficiency upgrades and advance clean energy market reforms.

The new package outlines legislative proposals for Energy Union governance, electricity market design and the review of key directives on the energy performance of buildings, energy efficiency and renewables.

“The potential of the Investor Confidence Project to develop good practice in de-risking energy efficiency investments has been recognised and described in the Commission Staff Working Document on good practice in energy efficiency that accompanies the Energy Efficiency Directive legislative proposal adopted on 30 November,“ said Paul Hodson, Head of the European Commission’s energy efficiency unit. “The ICP approach addresses the needs of investors looking for standardised projects that reduce the time, risk and costs involved in funding energy efficiency building retrofits.”

ICP Europe is a project of Environmental Defense Fund to standardise energy efficiency upgrades in a way that makes them more attractive to investors and building owners alike. ICP investor-ready projects are accredited against industry standards and best practices, which ultimately grants them the Investor Ready Energy Efficiency™ (IREE) certification. This reduces transaction costs and increases confidence in energy savings to help engage private capital and scale up energy efficiency investments globally.

“This endorsement will accelerate energy efficiency deal-flow and help us reach the €100 billion per year needed to meet the European Union’s energy security and environmental goals,” said Panama Bartholomy, Director of ICP Europe. “Together with our Investor Network and our partnership with Green Business Certification Inc., ICP is on its way to becoming the premier global underwriting standard for energy efficiency projects around the world.”

Members of the ICP Europe’s Investor Network, which brings together investors with over €1 billion available for energy efficiency retrofit projects, welcomed the endorsement. Charter Investor Network members include the European Energy Efficiency Fund administered by Deutsche Bank, SUSI Partners, The Carbon and Energy Fund, Menhaden Capital, Joule Assets, Royal Bank of Scotland and Banco BPI.

Many voices in the private and non-profit sector also praised the European Commission’s recommendation of ICP.

“In many ways, the energy efficiency opportunity seems too good to be true: profits from waste, jobs from new investments, cleaner air and savings for customers. If member states follow the European Commission’s endorsement and use the Investor Confidence Project in public funds leveraging energy efficiency investment, the financial community will have far more confidence in these outcomes.” – Jessica Stromback, Chairwoman, Joule Assets Europe

“Our retrofit project in Liverpool was the first in Europe to receive the Investor Confidence Project’s Investor Ready Energy Efficiency™(IREE) certification. Now, we have £100 million worth of projects in the pipeline that will be certified – a clear signal to the market we are open for business.” – David Mackey, Director, Carbon and Energy Fund.

“The European Commission’s endorsement of ICP as a standard approach to energy efficiency investments not only means that financiers can take advantage of a market with tremendous potential, but also makes legislation work for the environment.” – Ben Goldsmith, CEO, Menhaden Capital Management Ltd.

“Standardized energy upgrade approaches such as the Investor Confidence Project accelerate project progress, facilitating a more structured project development approach, which greatly enables access to financing.” – Lada Strelnikova, Director, Deutsche Asset Management and Investment Manager for the European Energy Efficiency Fund (eeef), which provides financing for energy efficiency projects in the public sector in Europe.

Interested parties can find more information on ICP Europe’s Investor Network here. For further details, please email [email protected]