Energy Efficient Investing

Increasing energy efficiency has become strategically important for the EU. This is due to energy price instabilities and the desire to transition to a more competitive low carbon economy. Investing this way is a cost effective way for the EU to mitigate the risks associated with global warming and increase opportunities associated with climate change and energy security.

It also helps improve productivity and efficiency and reduces energy consumption, and costs, for everyone. The EU is focused on sectors where the savings will be greatest, such as buildings, and has set itself an ambitious 20% energy savings target by 2020, which is the equivalent of turning off 400 power stations.

The European Investment Bank’s (EIB) approach to investing in energy saving projects means it supports projects that promote sustainability by using renewable energy resources, reducing emissions and dependence on non-renewable sources of energy. Research, development and innovations into energy-efficient technology is also a high priority.

Proactive Steps to Support Energy Efficiency

Numerous measures have been implemented by the EU to encourage investing in energy efficiency. It wants each member state to make energy efficient renovations to at least 3% of state owned and occupied buildings. When buildings are sold or rented, the building must come with a mandatory energy-efficient certificate. Products such as boilers, household appliances and lighting must have a minimum energy efficiency standard label. Member states must prepare a National Energy Efficiency Action Plan every three years, and large companies must conduct an energy audit every four years.

Energy-efficient projects usually include retrofitting, expanding social and urban infrastructure and services.

The EIB is investing in energy efficiency projects across Europe and has projects running globally in India, Senegal and Brazil.

“Tackling climate change is a top priority for the EIB,” says EIB Vice-President, Jan Vapaavuori. “Investing in energy efficiency is one of the most cost effective and rational ways of reducing emissions.”

Scandinavian Companies Lead the Way in 2017

The majority of energy efficiency projects financed by the EIB in 2017 have been in Scandinavian countries. VVO Group is Finland’s largest residential property company. It holds roughly 35,000 rental homes in Finland’s largest urban growth centres like Helsinki, Vantaa, Espoo and Tampere.

The EIB has backed VVO with an investment of €170m. The finance will be used to build several new near-zero-energy buildings (NZEBs), totalling around 1,800 new housing units. The goal is to reduce energy consumption and lower CO2 emissions by 18% compared to current construction standards.

The trend of investing in energy-efficient projects is projected to continue gaining momentum given the EU’s commitment to the sector in the coming months and years.

Cornfield & Partners provides information about the most attractive and lucrative markets and can guide you toward new sales channels in energy investing. For more information call us on +44 (0) 20 7692 0873 or email info@cornfieldpartners.com.

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