Private Finance for Energy Efficiency (PF4EE) instrument is a joint agreement between the EIB and the European Commission which aims to address the limited access to adequate and affordable commercial financing for energy efficiency investments.
The instrument targets projects which support the implementation of National Energy Efficiency Action Plans or other energy efficiency programmes of EU Member States.
The PF4EE instrument’s two core objectives are:
- to make energy efficiency lending a more sustainable activity within European financial institutions, considering the energy efficiency sector as a distinct market segment.
- to increase the availability of debt financing to eligible energy efficiency investments.
How it works
The instrument is managed by the EIB and funded by the Programme for the Environment and Climate Action (LIFE programme).
The LIFE Programme committed EUR 80m to fund the credit risk protection and expert support services. The EIB will leverage this amount, making a minimum of EUR 480m available in long term financing.
The PF4EE instrument will provide:
- a portfolio-based credit risk protection provided by means of cash-collateral (Risk Sharing Facility), together with
- long-term financing from the EIB (EIB Loan for Energy Efficiency) and
- expert support services for the Financial Intermediaries (Expert Support Facility)