The European Investment Bank (EIB) and the Česká Záruční a Rozvojová Banka (Czech Guarantee and Development Bank; CMZRB) have agreed that the European Investment Advisory Hub (EIAH) will support CMZRB in developing an investment platform for energy efficiency measures in the building sector in the Czech Republic.
EIB Vice-President Vazil Hudák commented: “Through the establishment of an investment platform dedicated to energy efficiency building refurbishment managed by CMZRB, we expect to strengthen support for local project promoters and energy service companies.”
Despite the huge potential for energy savings and job creation, energy efficiency investments into buildings can still be hindered by a number of technical, financial, budgetary or behavioural barriers. The EIAH support will help design and develop an innovative investment platform that will aim to stimulate the potential for financing energy saving measures in the form of Energy Performance (EPC) and Performance Based (PBC) contracts.
The platform will attempt to address the main market barriers by providing long-term sustainable financing to energy service companies, covering the default and performance risks related to EPC and PBC as well as supporting the best practices and contract standardisation to facilitate promoters.
This innovative approach, led by CMZRB, involves key stakeholders in the energy efficiency market in the Czech Republic and will be supported by key EIB Advisory experts. “The key aspect is that such cooperation will result in the support of economically viable and sustainable measures, where energy savings are specifically guaranteed,” stated Jiří Jirásek, chairman of CMZRB’s Board of Directors. “The role of our bank will be to interconnect the financial resources of EIB, commercial banks and European structural funds allocated to the Czech Republic (within the framework of OP EIC), and thus to ensure the long-term financing of energy efficient projects with public and private investors on preferential terms.”
Support for increasing energy efficiency investments is a priority for the EIB and is in line with EU policies. Energy efficiency contributes to climate action, lower costs and strengthened competitiveness. Investments in energy efficiency also have the potential to create a significant number of employment opportunities. The EIB supports projects that contribute to reaching the EU’s goal of increasing energy efficiency in the Union by 32 per cent by the year 2020.
The support is made available by EIB experts through the EIAH, a key component of the Investment Plan for Europe (or Juncker Plan), which aims to stimulate much needed investments in European countries.