Proposals should set up a financing scheme leveraging private finance for investments in energy efficiency, potentially combined with renewables and energy storage.

The financing scheme should be established in at least 1 eligible country under the LIFE programme, in order to ensure the development of a sound and robust investment pipeline.

The financing scheme should be operational by the end of the project, with credible access to financing sources and a prospective pipeline of investments. The related investments may be implemented after project completion, but proposals are expected to pilot test the financing scheme during the project time.

Proposals can build on and/or upscale financing schemes successfully tested previously, which should be documented as relevant. The financing schemes can involve, for example but are not limited to:

• Equity and debt, potentially combined with non-reimbursable grants (“blending”), in particular for low-income households or SMEs
• Guarantees, risk-sharing, insurance or other de-risking instruments
• Energy services such as energy performance contracting, efficiency as a service, and variants thereof, including the integration of demand-side flexibility, if the service includes the provision of finance for the investments
• White certificates schemes, energy efficiency auctions, and other competitive bidding mechanisms and market-based instruments favouring a cost-efficient and competitive allocations of funding to energy efficiency improvements
• On-bill, on-tax and building-based financing, where the debt is attached to the energy meter or the building rather than the household or company
• Schemes complementing, with a dedicated financing component, already existing local and regional technical assistance facilities, in particular integrated home renovation services
• Schemes targeting the secondary market, including refinancing mechanisms, specialised securitisation vehicles and green bond schemes
• Local investment structures, including citizen financing (e.g. crowdfunding) for energy efficiency
• Market-based instruments relevant for sustainable energy (e.g. carbon finance instruments, energy efficiency obligations, etc.)
• Brokering, aggregation or clearing houses, which facilitate matching of demand and supply of sustainable energy finance.

Proposals should take into account all the following elements:

• Establish an operational financing scheme supporting investments in energy efficiency, potentially combined with renewables and energy storage, in at least 1 eligible country. Proposals only addressing renewable energy, renewable fuel switch, and/or energy storage without addressing energy efficiency will be judged out of scope.
• Address the provision of finance as well as ensure the availability of demand in the form of a project pipeline complying with the requirements of the scheme, in particular at regional and national level. The pipeline does not need to be originated by the proposed activities.
• Define the targeted region(s) and sector(s) and clearly demonstrate the business case and financial viability of the proposed scheme (including e.g. market analysis, investment sizes targeted, transaction and management costs, expected energy/cost savings and other returns, etc.).
• Plan replication and/or rollout of the scheme envisaged beyond the region(s) targeted for the establishment, including the analysis of legal and market conditions for replication.
• Demonstrate support of the targeted stakeholder groups and present in a detailed manner how they will be involved throughout the project.
• Demonstrate the additionality and/or innovation of the proposed financing scheme compared to current market practices in the targeted sector(s) and region(s).
• Where relevant, demonstrate complementarity to available public funds, notably under the EU Cohesion funds in view of the preparation of the multiannual financial framework 2028-2034. Applicants should explain how they build on existing funding programmes and initiatives relevant for the targeted region/sector, in particular related to one-stop shops and project development assistance. If public funding is involved in the proposed financing scheme, proposals should demonstrate support from the relevant managing authorities.
• Coordinate with and potentially participate in the national hubs of the European Energy Efficiency Financing Coalition, when relevant.

Proposals may be submitted by a single applicant or by applicants from a single eligible country.