Irish Regions Office Website

May 06, 2010

Local energy support pledges: EUR115 million for CO2 reduction

Climate change mediation is increasingly being seen in EU terms as an area where the local level is best placed to deliver informed grassroots solutions which also touch on other policy areas such as regeneration and the environment. This priority was underlined in a speech by energy Commissioner Gunther Oettinger at the Covenant of Mayors Ceremony in the European Parliament on 4 May.

This Commission-backed declaration gained another 500 adherents at its first birthday celebration with representatives of these cities and regions formally pledging to play their part in significantly curtailing CO2 emissions through local plans and actions. Covenant signatories are now set to benefit from access to a windfall of at least EUR115 million, unspent as part of the European Economic Recovery package, in order to implement their sustainable energy policies. The funding is intended to be specifically used as a leverage mechanism to raise significant further investment from financial institutions such as the European Investment Bank (EIB) and the Council of Europe Bank (EBRD) and is hoped to act as a low carbon economy and employment creating stimulation tool.

The announcement was accompanied by a series of further Commission commitments to support the Covenant and local actions in sustainable energy including heightened levels of cooperation with ''regional and national administrations, that support both in technical and financial terms the implementation of the Covenant in smaller cities''. The ELENA financing package which arose from the Covenant as a means of providing technical assistance to structure and implement viable project proposals under local/regional sustainable energy strategies has already been doubled to a EUR30 million annual fund after strong levels of uptake. ELENA has been a key factor in mobilising EUR1 billion worth of investment (much of this through EIB loans) in just a few months - and is set to be further reinforced over the coming years.

According to the Commissioner, other supportive instruments with cities particularly in mind are also under consideration including 'carbon-funding instruments'. Looking to the longer term, work is ongoing to develop a dedicated 'Smart Cities' initiative in support of urban energy technologies within the Eight Framework Programme for Research and Technology. The Commissioner also announced his intention to bring forward a new Energy Efficiency Strategy for Europe which would give particular focus to regional and local actors.

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Posted by iroronan at May 6, 2010 10:36 AM