As Britain moves towards a low-carbon economy the public sector needs to lead by example. The budgetary rules governing capital expenditure vary across public sector organisations. However, most organisations will follow broadly similar principles in developing an investment/business case. Some public sector organisations, such as councils and universities are able to borrow; whereas others, such as NHS boards in Scotland find it more difficult.
Salix enables public sector organisations across England, Scotland, Wales and Northern Ireland to take a lead in tackling climate change by increasing their energy efficiency. Salix provides 100% interest-free capital for the public sector to reduce their energy costs by enabling the installation of modern, energy efficient technologies and replacing dated, inefficient technologies.
Energy efficient technology cuts carbon emissions and reduces energy bills. However, upfront capital is a common barrier for public sector organisations seeking solutions that cut their energy consumption. Salix, a not-for-profit organisation funded by the Department for Energy and Climate Change, the Department for Education, the Welsh Government, the Scottish Government and Higher Education Funding Council for England, removes this barrier by making this capital accessible to the public sector.
Over the next few years the GIB will continue to support public and private investment in energy efficiency projects and stimulate take up. The GIB expects to commit several hundred million pounds to energy efficiency projects, as it works with public and private sector partners to accelerate energy efficiency investment. In the immediate future both GIB and its fund managers will focus on a broad range of technologies that reduce energy consumption and/or emissions:
Building retrofits (e.g. lighting, insulation, and glazing
Onsite generation (e.g. CHP, renewable heat, heat pumps)
Industrial process (e.g. motors, pumps, kilns)
Infrastructure (e.g. streetlighting, heat networks, transport, smart meters).
The European Investment Advisory Hub is Europe’s gateway to investment support! A joint initiative by the European Commission and the European Investment Bank under the Investment Plan for Europe, the Hub offers a single access point to a 360 degree offer of advisory and technical assistance services with the aim of strengthening Europe’s investment and business environment.
JESSICA – Joint European Support for Sustainable Investment in City Areas, is an initiative of the European Commission developed in co-operation with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). It supports sustainable urban development and regeneration through financial engineering mechanisms.
The Scottish Partnership for Regeneration in Urban Centres (SPRUCE) is a £50m Urban Development Fund funded by the Scottish Government and the European Regional Development fund under the JESSICA initiative (Joint European Support for Sustainable Investment in City Areas).
The European Energy Efficiency Fund (EEEF) was established in 2011 to operate with the mission ‘Advancing Sustainable Energy for Europe’, while mitigating climate change through financing of energy efficiency measures in the public sector, small-scale renewable energy and clean urban transport projects.
The Fund was capitalized with an initial volume of €265million. The EEEF’s innovative private public partnership solution aims to have a European outreach by targeting the European Union’s 28 Member States. The Fund is currently financing 9 projects across Europe and working with 24 Cities and regional authorities in Europe with a commitment to grow its support in the future.