European Commission endorses ICP as “best practice” approach to energy efficiency investment

The Investor Confidence Project Europe (ICP Europe) represents “best practice” to maximise investment in buildings requiring energy efficiency upgrades and to advance clean energy market reforms, according to the European Commission.

In a major energy policy update published last week, the Commission proposed a package of measures aimed at keeping the European Union competitive as the transition to clean energy changes global energy markets.

“The potential of the Investor Confidence Project to develop good practice in de-risking energy efficiency investments has been recognised and described in the Commission Staff Working Document on good practice in energy efficiency that accompanies the Energy Efficiency Directive legislative proposal adopted today,” said Paul Hodson, head of the European Commission’s energy efficiency unit. “The ICP approach addresses the needs of investors looking for standardised projects that reduce the time, risk and costs involved in funding energy efficiency building retrofits.”

ICP Europe is a project of the Environmental Defense Fund that aims to enable a marketplace for building owners, project developers, utilities, public programmes and investors to trade in standardised energy efficiency projects.

ICP investor-ready projects are accredited against industry standards and best practices, which ultimately grants them the Investor Ready Energy Efficiency (IREE) certification. According to the Environmental Defense Fund, this reduces transaction costs and increases confidence in energy savings to help engage private capital and scale up energy efficiency investments globally.

“Today’s endorsement will accelerate energy efficiency deal-flow and help us reach the €100bn per year needed to meet the European Union’s energy security and environmental goals,” commented Panama Bartholomy, director of ICP Europe. “Together with our Investor Network and our partnership with Green Business Certification Inc., ICP is on its way to becoming the premier global underwriting standard for energy efficiency projects around the world.”

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