There have been two recent and interesting announcements for the funding of cleantech within the urban environment.

EU

In 2009, the EU established a €3.98 billion programme to aid economic recovery following the financial crisis. This economic stimulation package was aimed at energy infrastructure, offshore wind and carbon capture and storage projects. Pursuant to the programme the funds have to be committed by 31st December 2010. Research suggests that €115 million will not be committed by this date (the exact figure will not be known until the end of this year - for instance some earmarked projects may fail for various reasons). Following earlier promises made by the EU Commission, the EU's Industry, Research and Energy committee voted last week to approve amending the relevant EU legislation to allow for the balance of the uncommitted funds to be made available for a wider scope of projects (see below) under the Sustainable Energy Financing Initiative. Effectively this amounts to a redefinition of scope and a short extension of time (other aspects will remain the same, for instance the funds are intended to part finance a project, up to 50%). The funds for the new scope of projects (on current proposals) will have to be committed by 31st March 2011.

It is thought that the necessary amending legislation (Regulation 2010/0150 (COD)) will be passed by the European Parliament in October 2010. Under the amending legislation the following projects, and particularly those in urban settings, will be eligible for the balance of uncommitted funding.

  • Projects for public and private buildings incorporating renewable and/or energy efficiency solutions, including those based on the use of ICT,
  • Investments for high efficiency combined heat and power and district heating/cooling networks, in particular from renewable energy sources,
  • Decentralised renewable energy sources embedded in local settings,
  • Clean urban transport to support increased energy efficiency and integration of renewable energy sources, and
  • Local infrastructure, including efficient street lighting, smart metering and smart grids that make full usage of ICT.

The beneficiaries of these facilities shall be public authorities, preferably at regional and local level, or private entities acting on behalf of these public authorities.

To view the draft amending Regulation click here.

London

The European Investment Bank is to select an urban development fund to manage £50 million from the London Green Fund. These monies are to be invested in energy efficiency retrofit of buildings in Greater London. This week the EIB asked for expressions of interest (by 1st October 2010 with an information event to be held on 17th (registration by 13th) September 2010) from those who may wish to manage the fund. For more information click here.

This Energy Efficiency Urban Development Fund is part of the London Green Fund (£100 million), which in turn is part of EIB's and EU Commission's Joint European Support for Sustainable Investment in City Areas.

The Energy Efficiency Urban Development Fund is to invest in:

  • The adaption and/or refurbishment of existing public and/or voluntary sector buildings, and/or
  • Improvements to existing social housing

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 10th September 2010.