Activities of the working groups
Working groups are at the core of EEFIG activities. The participants include practitioners and policy experts working on key issues related to various aspects of EE financing in buildings and industry. On average, each WG is supported by at least 20 organisations, sharing best practice, delivering studies, standards and strategies and coordinating expert events, including technical inputs and policy recommendations to the European Commission’s Directorate-General for Energy.
Working Group – Applying the Energy Efficiency First Principle in Sustainable Finance
Working Group - Collecting and monitoring of data on energy efficiency investments and financing
Working Group - Stimulate consumers’ demand for energy efficiency investments
Main take aways from the EEFIG Annual Plenary in May 2022
Over two hundred members of EEFIG came together online to review progress and provide direction for the group’s activities. Given the urgent need to improve energy security and respond to high energy prices, the results provided by EEFIG members have never been more pivotal to support the acceleration needed for energy efficiency investments.
The development of practical tools that can facilitate the energy efficiency market is one of the objectives of EEFIG work. Both the DEEP Database and Underwriting Toolkit are intended to support financial institutions in energy efficiency investment decisions.
The EEFIG De-risking Energy Efficiency Platform (DEEP)
- DEEP is an open-source database for energy efficiency investments performance monitoring and benchmarking.
- DEEP provides an improved understanding of the real risks and benefits of energy efficiency investments by providing market evidence and investment track records.
- Includes almost 38,000 energy efficiency projects in buildings and industry from more than 30 data providers.
- New data and improved functionality is added regularly.
- DEEP can be accessed at https://deep.ec.europa.eu/ using an EU login which can easily be established through https://ecas.ec.europa.eu/cas/login if you do not already have one.
Why should I use the EEFIG DEEP?
- DEEP provides anonymized historical data structured along major project characteristics (geography, energy efficiency measures, verification status, industry / type of building, multiple benefits, etc.).
- DEEP platform provides insight on financial performance indicators such as Payback Time (allows assessment of minimum loan tenure needed) and Avoidance Cost (allows assessment of financial viability at different interest rates and energy prices). Avoidance Cost is the equivalent of Levelized Cost of Energy (LCOE).
- These clearly document the existence of many investment opportunities within energy efficiency in both buildings and industry.
- Financial institution may upload their own individual projects or portfolios as private projects and benchmark them against user-selected sub-sets of the projects in DEEP.
Why should I become a data provider to EEFIG DEEP?
- Through data sharing with DEEP you may contribute to the de-risking of energy efficiency financing in buildings and industry and through this to decarbonization of the EU economy.
- Energy efficiency in buildings and industry is not only the cheapest fuel for the EU economy but also generate many non-energy benefits (reduced air pollution, improved indoor comfort, reduced respiratory deceases).
- DEEP is owned by the European Commission DG Energy and the data you share will be kept confidential, not shared with third parties and only shown through aggregated analysis.
- It is possible to enter data directly into the web interface, but an excel based input sheet allows easy data entry for multiple projects. An API for easy data upload and access to aggregated DEEP analysis is under development.
- The 20 most important data fields are included in the Simple Data Entry, whereas the Detailed Data Entry provides options for registering more detailed project data. New projects are quality assured and uploaded quarterly.
EEFIG underwriting toolkit
Leading financial institutions are increasingly active in energy efficiency and there are four main reasons for this:
- it represents a significant new business opportunity.
- it can reduce client risk through improving cash flow and reducing the risk of stranded assets through tightening energy efficiency regulations.
- it delivers environmental objectives which are a key component of Corporate Social Responsibility programmes.
- banking regulators are increasingly looking at climate risks and energy efficiency is a major factor in mitigating those risks.
These four reasons can encourage other financial institutions to enter the market.
The EEFIG Underwriting Toolkit is designed to assist financial institutions to scale up their deployment of capital into energy efficiency. It was compiled with several objectives in mind:
- to help originators, analysts and risk departments within financial institutions better understand the nature of energy efficiency investments and therefore better evaluate both their value and the risks.
- to provide a common framework for evaluating energy efficiency investments and analysing the risks that will allow training and capacity building around standardised processes and understanding.
- to help developers and owners seeking to attract external capital to energy efficiency projects to develop projects in a way that better addresses the needs of financial institutions.
- to foster a common language between project developers, project owners and financial institutions.
Although the focus is on value and risk appraisal, additional material on the size of the potential market, methods of financing and the project life cycle have been included to give a fuller picture and help build capacity within financial institutions.
or download the EEFIG Underwriting Tookit in pdf format below:
The authors would like to acknowledge all members of EEFIG for their input and specifically the following organisations which have made direct contributions to the writing of this Toolkit: ABN Amro, Adelphi, Amber Infrastructure, Ameresco, Aon, Aurubis, Barclays, BASE, Belifus, Berlin Hyp, Better Building Partnership, BMGI-Consulting, BPCE, Bulgarian Energy Efficiency and Renewable Sources Fund, Caisse des Depots et Consignations, Carbon & Energy Fund, CEN/CENEC, Cycle 7, Danfoss, DENEFF, Deutsche Bank, DG Energy, EFIEES, EEIP, EEP University of Stuttgart, EEVS, Eiffel Fund, EESL, EuroACE, European Energy Efficiency Fund, Eurima, European Investment Bank, Finerpol EPC, Green Investment Bank, Hermes, IFFR, Investor Confidence Project, ING, Italcogen, KEA Baden-Wurtenberg, Komercni banka, LABEEF, Lux Nova Partners, Münchener Hypothekenbank, PACENow, PIB Insurance, PostBank, OpenExp, RdA Climate Solutions, Romanian Green Building Council, Saint-Gobain, Santander Group, Serimus, SUSI, Tera srl, The Carbon Trust, The CO Firm, The Curve, Triodos, Turboden, UK Department for Business, Energy & Industrial Strategy, UNEP FI, University of Geneva, University of Stuttgart, Verco Advisory Services, Vesta Conseil & Finance, VIPA.