REgional-based FINancing schemes to pool private investments in tailored Energy Efficiency plans for SMEs of strategic value chains.

Introduction

The EU industry is responsible for a significant share of primary energy demand and GHG emissions. However, most SMEs have not tackled the clean transition challenge, mainly due to the lack of internal technical capacity and financial resources to implement ambitious energy efficiency plans tailored to their productive sites’ specificities.

Challenges Faced by SMEs

On the other hand, private investors are reluctant and still view this type of investment as risky, fragmented, complex, or insufficiently profitable.

Project Overview

The REFINEE consortium will design, test, and compare place-based solutions to the above situation in two EU regions:

1. Friuli Venezia Giulia (IT)
2. Istria (HR)

Both regions are characterized by a high share of small industries.

Objectives

The project will help a cohort of 45+ SMEs make the transition to low-carbon technology by providing technical support to access public-private financial innovative schemes that reward companies’ collaborative approaches.

Financial Instruments

A basket bond for energy sustainable SMEs will be launched in FVG, targeting strategic value chains and blending public (ERDF) and private financial sources. In Istria, a hybrid instrument will promote the creation of the first Industrial Energy Communities located in the entrepreneurship zones.

Expected Outcomes

Overall, triggered investments in sustainable energy will reach up to 53 million EUR and lead to the creation of over 300 new jobs.

Maximizing Private Finance

REFINEE will unlock and maximize private finance by giving investors a range of reliable investment opportunities and providing them with a third-party evaluation tool. Moreover, the blending with public funds will reduce their risks, making their participation in the initiative more attractive.

Replication and Advocacy

Slovenia is going to be the EU replication laboratory at a national scale and advocate for adopting similar instruments leveraging the project’s lessons learned. The REFINEE idea has conveyed the interest of a qualified pool of stakeholders, including large commercial banks and regional financial companies eager to replicate the project results.