UNECE Launches EUR 250 million Eastern European Energy Efficiency and
Renewable Energy Investment Fund
Geneva, 27 April 2007 -- The UNECE Energy Efficiency 21 Project
(EE21) is to assist in the development and launching of an Investment Fund
to reduce greenhouse gas emissions in Eastern Europe, Central Asia and South-Eastern
Europe. The UNECE has received grants totalling US$ 7.5 million
from the United Nations Foundation (UNF), Fonds Français pour l’Environnement
Mondial (FFEM) and the Global Environmental Facility (GEF) for ‘Financing
Energy Efficiency and Renewable Energy Investments for Climate Change Mitigation’.
This technical assistance project will launch a public-private equity Fund
under the auspices of the Global Environment Facility, assist local experts
to develop investment projects for financing and work with local authorities
on the energy policy reforms to support these investments.
The Energy Efficiency 21 Project promotes the formation of an energy efficiency
market in Eastern Europe so that cost-effective investments can provide a
self-financing method of reducing global greenhouse gas emissions. During
the last few years, the UNECE has demonstrated that it is possible to identify,
develop and finance energy efficiency investment projects in Eastern Europe.
But it has also shown that this is a time consuming and labour intensive process
that needs to become much more fluid or business-as-usual in order to succeed
on any meaningful scale.
The market for energy efficiency projects with a payback period of less
than five years is estimated to be between EUR 5 and 10 billion. But the capital
investment requirements needed to tap this potential are so large that only
commercial sector finance on a significant scale can actually deliver meaningful
results. This market will need to provide opportunities for the commercial
sector to make large investments with low transaction costs that make adequate
returns at acceptable risk within a reasonable period of time.
The Energy Efficiency and Renewable Energy Investment Fund is designed to
provide a bridge between demonstration investments financed under special
conditions in selected Eastern European locations to the establishment of
an investment fund that can serve as a vehicle for the large scale participation
of private sector investors in partnership with public entities including
current and planned GEF projects.
The United Nations Environment Programme (UNEP) will be the GEF Implementing
Agency and the UNECE is the Executing Agency for the project. Part of the
funding from UNF, FFEM and GEF will be used to structure the Investment Fund,
examine legal and fiscal issues, and solicit public and private sector investors
who will select an experienced Fund Manager. The investment fund will not
be managed by UNECE or UNEP but will be a separate legal entity aligned with
Energy Efficiency 21.
The EE21 capacity building activities will be aimed at developing
the skills of public and private sector experts to identify, develop and finance
energy efficiency investment projects for submission to the Fund Manager.
The project will also work with national administrations and local authorities
to introduce economic, institutional and regulatory reforms needed to support
these investment proposals.
An announcement by Mr. Marc-Antoine Martin, Secretary General, Fonds Français
pour l’Environnement Mondial (FFEM) concerning support for the Investment
Fund will be made to the 60 th anniversary session of the Economic Commission
for Europe at 12:00 on Friday 27 April in Salle XIX of the Palais des
Nations. Mr. Martin, together with senior representatives
of the UNECE secretariat and Mr. Bernard Jamet, GEF Climate Change
Coordinator, will be available for further information and to answer questions
about the Fund on Friday 27 April at 12:30 in Salle X of the Palais des
Nations.
For further information on the Investment Fund please contact:
Mr. Bernard Jamet
GEF Climate Change Co-ordination
Division of Technology, Industry and Economics
United Nations Environment Programme
39-43, quai André-Citroën
F-75739 Paris Cedex 15, France
Telephone: +33 (0)1 44 37 18 58
Fax. +33 (0)1 44 37 14 74
E-mail: [email protected]
Website: http://www.unep.fr/ozonaction/
For
further information on the Energy Efficiency 21 Project please contact:
Gianluca Sambucini
Energy Efficiency 21 Project
Sustainable Energy Division
United Nations Economic Commission for Europe
Palais des Nations, Bureau 462
CH - 1211 Geneva 10, Switzerland
Telephone: +41 (0)22 917 1175
Telefax: +41 (0)22 917 0178
E-mail: [email protected]
Website: http://www.unece.org/ie/ and http://www.ee-21.net
Ref: ECE/SED/07/P02