A new financing initiative aims to connect property developers with investors seeking energy efficiency projects that deliver environmental and financial results.
The Investor Confidence Project Europe (ICP Europe) said that its Investor Network was developed to help address the needs of investors looking for standardised projects that reduce the time, risk and costs involved in funding energy efficiency building retrofits.
The network brings together investors with over €1bn (£775m) available for energy efficiency retrofit projects. Charter members include: the European Energy Efficiency Fund administered by Deutsche Bank, SUSI Partners, Suma Capital, CleanTech Leasing, the Carbon and Energy Fund, Menhaden Capital, Energy Efficiency and Renewable Sources Fund, Joule Assets, PIB Insurance, Triodos Bank, Royal Bank of Scotland, Banco BPI, Amber Infrastructure, and Cut Power.
Some of the members offer developers incentives such as accelerated underwriting, reduced transaction fees, and preferable terms for certified projects.
Funded by the European Commission’s Horizon 2020 programme, 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.
According to the organisation, its Investor Ready Energy Efficiency (IREE) certified projects are accredited against industry standards and best practices, which reduces transaction costs and increases confidence in savings to help engage private capital and scale up energy efficiency investments globally.
“The potential market for building retrofits in Europe is worth upwards of €100bn (£77.5bn) per year, presenting a massive, untapped investment opportunity,” commented Panama Bartholomy, director of ICP Europe. “Offering investors a common language to compare risks and savings makes projects simpler, decisions easier, and project performance more reliable. We invite cities, building owners, and local governments that develop these types of projects to meet with our Investor Network to help finance them.”