Cohesion support for Renewable Energy Camelia M. Kovács European Commission Directorate-General for and Urban 1
Commission proposal for Cohesion 2014-2020 2
Investment policy supporting Europe 2020: growth, jobs, quality of life and sustainable development European Development Fund (ERDF) European Social Fund (ESF) Cohesion Fund (CF) Total: Around 322 billion of EU funds, concentrated in less developed regions Cohesion 2014-2020 The map shows eligibility simulation for the ERDF and the ESF. Approximate overall amount and classification of regions based on political agreement on EU Multiannual Financial Framework reached between EP and Council June 2013. 3
Cohesion 2014-2020 Cohesion to allocate some 20 billion (estimate!) to investments in energy efficiency and renewable energy including in buildings smart distribution grids and urban mobility, including research and innovation in those areas in complementarity with Horizon 2020; Cohesion also to allocate resources, mainly in less developed regions, to promote sustainable transport and to remove bottlenecks in key network infrastructures, including energy, in complementarity with the Connecting Europe Facility; Crucial to ensure that public funding complements private investment. Financial instruments with Cohesion contribution to be used where potential for private revenue or cost savings is large. 4
Cohesion 2014-2020 Adoption of Commission proposal in October 2011 Reduce disparities between Europe's regions strengthening economic, social and territorial cohesion Contribute to the Europe 2020 Strategy for smart, sustainable and inclusive growth Focus on thematic concentration Presently the legislative process is on-going and is in advanced stage (The Trilogue) In parallel, presently the programming documents are prepared by the MS (Partnership Agreements and Operational Programmes) and informal negotiations take place with the European Commission 5
Cohesion 2014-2020 Recognised need to increase the performance and impact of the funds, thus, the following novelties: Thematic concentration of funds: 11 thematic objectives linked to the Europe 2020 Strategy (Article 9 of Common Provisions Regulation) Ex-ante conditionalities (Annex V of the Common Provisions Regulation) 6
inclusive sustainable smart Europe 2020 Thematic Concentration 11 Objectives (Art.9) 1. Strengthening research, technological development and innovation; 2. Enhancing access to, and use and quality of, information and communication technologies; 3. Enhancing the competitiveness of Small and Medium-Sized Enterprises (SME) [ ]; 4. Supporting the shift towards a low-carbon economy in all sectors; 5. Promoting climate change adaptation, risk prevention and management; 6. Preserving, protecting the environment, promoting resource efficiency 7. Promoting sustainable transport and removing bottlenecks in key network infrastructures; 8. Promoting sustainable, quality employment, supporting labour mobility; 9. Promoting social inclusion, combating poverty and any discrimination; 10.Investing in education, skills and lifelong learning; 11. Enhancing institutional capacity of public authorities and 7 stakeholders, efficient public administration Cohesion
Research and Innovation SMEs competitiveness Concentration of ERDF Energy efficiency and renewable energy Developed regions & transition regions Less developed regions 6% 60% 20% 44% Thematic objectives are translated into priorities specific to each of the European Structural and Investment Funds and set out in the Fund-specific rules. 8
Thematic objectives contribute to EU 2020 Regulations Proposed by Commission Translates objectives and targets of EU 2020 into indicative actions of high EU added value Alignment with EU 2020: evaluation, results expected, indicative allocation by thematic objective Common Strategic Framework Partnership Agreement Annex I to Common Provisions Regulation Prepared by MS in dialogue with Commission, approval if Commission observations taken into account Increasing MS competence Strategy consistent with ESF, thematic objectives, investment priorities, etc. Operational Programmes Drawn up by MS in cooperation with partners Projects MS, except major projects, where documentation submitted to Commission, approval needed 9
Cohesion 2014-2020 Commission and Member States negotiate Partnership Agreements (PAs) at national level and Operational Programmes (OPs) at national and/or regional level for 2014-2020; Programmes managed by "Managing Authorities" (MAs) at national/regional level. Often national or regional Ministry for finance/economy/regional development; Member States alone select and implement projects in line with priorities of the OPs (principle of 'shared management'). However, 'major projects', i.e. investments with total eligible costs over 50 million / 75 million (depending on investment field), are submitted and approved by the Commission; Overall co-financing rates between 50% (more developed) and 85% (less developed regions); Different rates for 'revenue-generating' projects. EU funds always complemented by national, regional, financial institutions (e.g. EIB) funds. 10
Example of an ex-ante conditionality Thematic Objective Investment priorities Ex-ante conditionality Criteria for fulfilment Nr. 4 Supporting the shift towards a low-carbon economy in all sectors - [ ] - [ ] - promoting the production and distribution of energy derived from renewable sources - [ ] - [ ] - Actions have been carried out to promote the production and distribution of renewable energy sources - [ ] - [ ] - A national renewable energy action plan (consistent with Article 4 of Directive 2009/28/EC) adopted by the MS; - [ ] 11
Investments in Sustainable Energy in 2014-2020 Cohesion Supporting the shift towards a low-carbon economy in all sectors 5 investment priorities proposed: a) Promoting the production and distribution of Renewable Energy Sources (RES) b) Promoting EE and RES use in SMEs c) Supporting EE and RES use in public infrastructures and in the housing sector d) Developing smart distribution systems at low voltage levels e) Promoting low-carbon strategies for urban areas 12
Investments in Sustainable Energy in 2014-2020 Cohesion "Supporting the shift towards a low-carbon economy in all sectors" Discussions in the Trilogue on fine-tuning of wording and possible further investment priorities: Separate investment priorities on research and innovation in low-carbon technologies and on highefficiency co-generation of heat and power Support also to large enterprises in this area Low-carbon strategies for all types of territories, and inclusion of urban mobility Exact levels for ERDF concentration also discussed! 13
Indicative actions for Investments Innovative renewable energy technologies, in particular technologies mentioned in the SET-Plan and in the Energy Roadmap 2050, along with 2 nd and 3rd generation biofuels Supporting marine-based renewable energy production Investment in the wider use of Energy Performance Contracting in the public buildings and housing sectors Energy efficiency and renewable heating and cooling in public buildings, in particular demonstration of zero-emission and positive-energy buildings, and deep renovation of existing buildings to beyond cost-optimal levels EE and RES in SMEs, including information campaigns Integrated low-carbon strategies and sustainable energy action plans for urban areas, including public lighting systems and smart grids 14
Implementation Principles Energy Mainly private sector investment. Ensure that public funding complements private investment, leveraging it; Financial instruments to be used where potential for private revenue or cost savings is large; For infrastructure investment, grants to be used primarily: to address market failures; to support innovative technologies; to support investments beyond cost-optimal EE performance: ensure energy savings and Green House Gas emission reductions above "business as usual"! 15
Links to Research and Innovation for Sustainable Growth Future Cohesion : Ex-ante conditionality on 'National or regional research and innovation strategies for smart specalisation' ("RIS3") Research & Innovation (R&I) needed in the area of sustainable energy A number of MS and regions expected to include energy R&I in forthcoming strategies 16
Guide issued in November 2012 How to integrate ecoinnovation, RES, EE in the Research & Innovation Strategies for Smart Specialisation ("RIS3") Why it makes sense What authorities & stakeholders can do Collection of good practices 17
Potential final beneficiaries worth paying attention to: 1. Publication of the new Regulations. 2. Publication of the Funds related National documents (e.g. strategies, eligibility rules, PAs, OPs, etc.). 3. Whether their investment plan fit in the any of the 11 thematic objectives. 4. Whether their investment plan fit in the MS PA/OPs objectives, priorities. 5. Whether their investment plan contains eligible types of components (works, services, equipment, etc.). 6. Not underestimating the resources needed (financial, human, time) for a successful project cycle. 7. Future calls of interest, public procurement announcements by the MS. 18
More information Expert Evaluation Network reports on RES and EE in housing: http://ec.europa.eu/regional_policy/information/evaluations/index_en.cfm#1 Commission proposals for Cohesion 2014-2020: http://ec.europa.eu/regional_policy/what/future/proposals_2014_2020_en.cfm List of Cohesion funds Managing Authorities: http://ec.europa.eu/regional_policy/manage/authority/authority_en.cfm Smart specialisation platform: http://s3platform.jrc.ec.europa.eu/home 19
THANK YOU FOR YOUR ATTENTION! 20