Cohesion Policy support for Renewable Energy Camelia M. Kovács European Commission Directorate-General for Regional and Urban Policy 1 Regional Policy
Commission proposal for Cohesion Policy 2014-2020 2 Regional Policy
Cohesion Policy 2014-2020 Investment policy supporting Europe 2020: growth, jobs, quality of life and sustainable development European Regional • Development Fund (ERDF) European Social Fund (ESF) • Cohesion Fund (CF) • Total: Around € 322 billion of EU funds, concentrated in less developed regions The map shows eligibility simulation for the ERDF and the ESF . Approximate overall amount and classification of regions based on political agreement on EU Multiannual 3 Financial Framework reached between EP and Council June 2013. Regional Policy
Cohesion Policy 2014-2020 • Cohesion Policy to allocate some 20 billion € (estimate!) to investments in energy efficiency and renewable energy – including in buildings – smart distribution grids and urban mobility , including research and innovation in those areas in complementarity with Horizon 2020; • Cohesion Policy also to allocate resources, mainly in less developed regions, to promote sustainable transport and to remove bottlenecks in key network infrastructures , including energy, in complementarity with the Connecting Europe Facility; • Crucial to ensure that public funding complements private investment . Financial instruments with Cohesion Policy contribution to be used where potential for private revenue or cost savings is large. 4 Regional Policy
Cohesion Policy 2014-2020 • Adoption of Commission proposal in October 2011 • Reduce disparities between Europe's regions strengthening economic, social and territorial cohesion • Contribute to the Europe 2020 Strategy for smart, sustainable and inclusive growth • Focus on thematic concentration • Presently the legislative process is on-going and is in advanced stage (The Trilogue) • In parallel, presently the programming documents are prepared by the MS (Partnership Agreements and Operational Programmes) and informal negotiations take place with the European Commission 5 Regional Policy
Cohesion Policy 2014-2020 • Recognised need to increase the performance and impact of the funds, thus, the following novelties: • Thematic concentration of funds: 11 thematic objectives linked to the Europe 2020 Strategy (Article 9 of Common Provisions Regulation) • Ex-ante conditionalities (Annex V of the Common Provisions Regulation) • 6 Regional Policy
Thematic Concentration – 11 Objectives (Art.9) 1. Strengthening research, technological development and innovation; smart 2. Enhancing access to, and use and quality of, information and communication technologies; 3. Enhancing the competitiveness of Small and Medium-Sized Enterprises (SME) […]; Europe 2020 4. Supporting the shift towards a low-carbon economy in all sectors; sustainable 5. Promoting climate change adaptation, risk prevention and management; 6. Preserving, protecting the environment, promoting resource efficiency 7. Promoting sustainable transport and removing bottlenecks in key network infrastructures; 8. Promoting sustainable, quality employment, supporting labour mobility; inclusive 9. Promoting social inclusion, combating poverty and any discrimination; 10.Investing in education, skills and lifelong learning; 11. Enhancing institutional capacity of public authorities and 7 stakeholders, efficient public administration Cohesion Regional Policy Policy
Concentration of ERDF Research and Innovation Energy efficiency and renewable energy SMEs competitiveness Developed regions & Less developed regions transition regions 6% 20% 60% 44% Thematic objectives are translated into priorities specific to each of the European Structural and Investment Funds and set out in the Fund-specific rules. 8 Regional Policy
Regulations Thematic objectives Proposed by Commission contribute to EU 2020 Translates objectives Common Strategic and targets of EU 2020 Annex I to Common Increasing MS competence into indicative actions of Framework Provisions Regulation high EU added value Partnership Alignment with EU Prepared by MS in dialogue Agreement 2020: evaluation, results with Commission, approval if expected, indicative Commission observations allocation by thematic taken into account objective Operational Strategy consistent with Drawn up by MS in Programmes ESF, thematic cooperation with partners objectives, investment priorities, etc. MS, except major projects, Projects where documentation 9 submitted to Commission, approval needed Regional Policy
Cohesion Policy 2014-2020 • Commission and Member States negotiate Partnership Agreements (PAs) at national level and Operational Programmes (OPs) at national and/or regional level for 2014-2020; • Programmes managed by "Managing Authorities" (MAs) at national/regional level. Often national or regional Ministry for finance/economy/regional development; • Member States alone select and implement projects in line with priorities of the OPs (principle of 'shared management'). However, 'major projects', i.e. investments with total eligible costs over € 50 million / € 75 million (depending on investment field), are submitted and approved by the Commission; • Overall co-financing rates between 50% (more developed) and 85% (less developed regions); • Different rates for 'revenue-generating' projects. • EU funds always complemented by national, regional, financial institutions (e.g. EIB) funds. 10 Regional Policy
Example of an ex-ante conditionality Thematic Investment Ex-ante Criteria for Objective priorities conditionality fulfilment Nr. 4 Supporting - […] - […] - […] the shift towards - […] - […] - […] a low-carbon - promoting the - Actions have - A national economy in all production and been carried out renewable sectors distribution to energy action of energy derived promote the plan ( consistent from renewable production and with Article 4 of Directive sources distribution 2009/28/EC) of renewable adopted by the energy sources MS; - […] 11 Regional Policy
Investments in Sustainable Energy in 2014-2020 Cohesion Policy Supporting the shift towards a low-carbon economy in all sectors – 5 investment priorities proposed: a) Promoting the production and distribution of Renewable Energy Sources (RES) b) Promoting EE and RES use in SMEs c) Supporting EE and RES use in public infrastructures and in the housing sector d) Developing smart distribution systems at low voltage levels │ 12 e) Promoting low-carbon strategies for urban areas Regional Policy
Investments in Sustainable Energy in 2014-2020 Cohesion Policy "Supporting the shift towards a low-carbon economy in all sectors" – Discussions in the Trilogue on fine-tuning of wording and possible further investment priorities: • Separate investment priorities on research and innovation in low-carbon technologies and on high- efficiency co-generation of heat and power • Support also to large enterprises in this area • Low-carbon strategies for all types of territories, and inclusion of urban mobility Exact levels for ERDF concentration also discussed! │ 13 Regional Policy
Indicative actions for Investments • Innovative renewable energy technologies , in particular technologies mentioned in the SET-Plan and in the Energy Roadmap 2050 , along with 2 nd and 3rd generation biofuels • Supporting marine-based renewable energy production • Investment in the wider use of Energy Performance Contracting in the public buildings and housing sectors • Energy efficiency and renewable heating and cooling in public buildings , in particular demonstration of zero-emission and positive-energy buildings, and deep renovation of existing buildings to beyond cost-optimal levels • EE and RES in SMEs , including information campaigns • Integrated low-carbon strategies and sustainable energy action plans for urban areas , including public lighting systems and smart grids 14 Regional Policy
Implementation Principles – Energy • Mainly private sector investment. Ensure that public funding complements private investment , leveraging it; • Financial instruments to be used where potential for private revenue or cost savings is large; • For infrastructure investment, grants to be used primarily: • to address market failures; • to support innovative technologies; • to support investments beyond cost-optimal EE performance: ensure energy savings and Green House Gas emission reductions above "business as usual"! 15 Regional Policy
Links to Research and Innovation for Sustainable Growth Future Cohesion Policy: Ex-ante conditionality • on 'National or regional research and innovation strategies for smart specalisation ' ("RIS3") Research & Innovation (R&I) needed in the • area of sustainable energy A number of MS and regions expected to • include energy R&I in forthcoming strategies 16 Regional Policy
• Guide issued in November 2012 • How to integrate eco- innovation, RES, EE… in the Research & Innovation Strategies for Smart Specialisation ("RIS3") • Why it makes sense • What authorities & stakeholders can do • Collection of good practices 17 Regional Policy
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