The PF4EE Expert Support Facility: Stimulating energy efficiency financing by European banks (phase 1)

Energy efficiency plays a significant role in meeting international objectives on climate change, promoting economic competitiveness, and increasing energy security. In this context, improving energy efficiency in important areas such as buildings and industries across Europe constitutes a key component of the European Union’s energy and climate policy. Reaching the EU targets on greenhouse gas reductions and energy savings, however, requires significant investments with a need to scale up commercial financing.

In order to increase the availability of debt financing for energy efficiency investments, the European Investment Bank (EIB) and the European Commission have jointly developed the Private Finance for Energy Efficiency (PF4EE) instrument. The instrument also aims to strengthen energy efficiency financing as a sustainable activity across European financial institutions. PF4EE is implemented by EIB partner banks in the European Union that offer preferential energy efficiency financing in their respective national markets.  Participating partner banks benefit from a portfolio-based credit risk protection (the Risk Sharing Facility) and expert support services for supporting the implementation of PF4EE (the Expert Support Facility). The instrument may also be combined with long-term financing from the EIB through a loan. The PF4EE instrument is funded by the Programme for the Environment and Climate Action (LIFE Programme) under the auspices of the Directorate General for Climate Action and by the EIB.

From 2015-2021, adelphi led phase 1 of the PF4EE Expert Support Facility and thus supported the deployment of the PF4EE instrument. adelphi’s main responsibility was to provide technical assistance services such as staff training and other capacity building initiatives to suit individual partner banks’ needs and requirements. In addition, adelphi supported partner banks in monitoring, reporting, and verification of PF4EE loans and provided tailored support on pipeline and loan portfolio development. adelphi has also developed the PF4EE WebCheck / EEQuest online tool that is accessible to partner banks and their clients to estimate energy savings and to conduct preliminary PF4EE eligibility tests. Already since 2020, the PF4EE Expert Support Facility continues in its second phase, which is also led by adelphi.