The European cohesion policy? Sorry, I have never heard of it...

Structural funds might be a familiar term to many of you. But do you know their origin?

Already in the 1970s, the European Union (EU) Member States decided to reduce the existing disparities in the development and the well-being of their citizens and regions.

The European cohesion policy was born by the Single European Act of 1986! Its aim is to achieve this goal through two financial instruments: the Structural Funds and the Cohesion Fund.

Both funds represent about 36% of the total EU budget whi is 308 bn EUR in 2004 prices.

Now, if you ask yourself how you are supposed to reduce the development gaps, be aware that within the Lisbon strategy a toolbox with potential solutions already exists: sustainable economic growth, competitiveness, knowledge and employment.

The real question is how sustainable development and energy issues can form an integral part of this particular European roadmap.

EU cohesion policy has 3 priorities. And the answer on the question you will find if you look better at the pictures:

The Structural Funds and the Cohesion Fund: Who will get how much?

The Structural Funds and the Cohesion Fund are available in all the EU countries.

Since 2004 the European funds have been available in 10 “new EU Member States” - Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.

Since January 2007, they have been available in the former Candidate Countries – Bulgaria and Romania.

3 funds are at your disposal:

1. The Structural Funds		European Regional Development Fund (ERDF)  European Social Fund (ESF)
2. The Cohesion Fund (CF)

All in all, 268 European regions can benefit from the funds.

How much will your region get depends mainly on the level of its Gross Domestic Product (GDP) per capita comparing to the EU average. In another words, it depends to which "objective" your region belongs.

EU cohesion policy has 3 objectives:
  ’Convergence’ objective (red & pink regions on the map)
  ’Competitiveness and Employment’ objective (blue & dark blue regions)
  ’European Territorial Cooperation’ objective (all regions)

The objectives determine which regions will benefit from which funds.

Are there any sustainable energy priorities?

YES!!! The European Cohesion policy have the priorities in the field of energy efficiency and renewable energy sources. These priorities are already set up and the projects financed from the Structural Funds will have to be in line with these priorities. So, sustainable energy projects will be able to get financing. See all the priorities of the Cohesion policy in the field of sustainable energy in this section.

EU cohesion policy is based on the strategic document called Community Strategic Guidelines.

This document was elaborated by the European Commission and the EU Member States. It contains several priorities concerning environment and sustainable use of energy (go to pages 7-8) that will be supported from the European Funds.

Each Member State should comply with these priorities when preparing its national strategy and operational programmes.

Moreover, the European Commission can advise you how to invest in your city. Here are its main suggestions concerning sustainable energy use:

 Improving the efficiency of public transport – the promotion of energy-efficient vehicles and alternative transport fuels. New projects should form part of an integrated transport strategy for the urban area.

 Promotion of cycling, walking and other alternative and “soft” forms of transport. This includes: demand-side management, regulated access to or even the pedestrianisation of the city’s sensitive zones, the construction of cycle and pedestrian paths, encouragement of energy-efficient vehicles and alternative transport fuels.

 Implementing measures to tackle congestion, better management of transport demand and raise revenues for transport improvement.

 Attractive and sustainable architecture.

 Limiting urban sprawl and suburbanisation as dispersed settlements have a bigger impact on natural habitats and use more resources (e.g. greater energy use to transport goods over longer distances) generating more pollution.

 Increasing energy and water efficiency in housing (in the context of a long term, integrated redevelopment plan for the affected area. This should create the basis for new economic activity or improve the overall environmental quality of the area).

 Investments to achieve compliance with EU laws on air quality, waste-water treatment, waste management, water supply and environmental noise.

 Promotion of energy efficiency in urban planning, municipal regulations and public procurement; by setting an example and encouraging sustainable construction practices by working with citizens.

 Energy efficiency improvements through investments in district heating schemes and promoting renewable energy.

 Organisation of events, e.g. exhibitions, conferences, workshops and thematic seminars/discussions focused on climate change and energy issues and possibilities of cooperation among local actors (businesses, universities, financial institutions, local authority, NGOs, citizens etc).

 Attracting and training “knowledge workers”, specialists in new technologies (such as renewable energy technologies, sustainable architecture, etc).

 Creation of city networks and exchange of experiences (e.g. about sustainable energy projects).

The Funding Period 2007-2013: What is new, what will be better?

 The number of objectives and financial instruments has been reduced. The 3 objectives will be financed through 3 funds – the European Regional Development Fund, the European Social Fund and the Cohesion Fund.

 The guiding principles of the former URBAN, EQUAL and LEADER community initiatives have been mainstreamed into the ‘Convergence’ and the ‘Regional Competitiveness and Employment’ objective.

 The Cohesion Fund will finance major transport and environmental projects with a strong focus on energy efficiency, renewable energy sources and clean urban and public transport.

 The European initiative INTERREG III will continue within a new ‘European Territorial Cooperation’ objective under the name INTERREG IV. It appears that exchange of experiences and networking has been “promoted” and gained a more important position to become an objective in itself. It has to be noted, though, that the budget allocated to this type of activities has not increased. Moreover, there are 27 Member States now using a lower budget than before. It still rests a major programme for exchange of experiences and best practice.

 Housing will be eligible for financing from the European Regional Development Fund but only as a part of an integrated urban development plan in all Member States that acceded the EU on or after 1 May 2004.

 Regional Initiatives and Fast Track Projects in the ‘European territorial cooperation’ programmes will ensure that good practice is exchanged between the cities and regions and their fast mainstream to the programmes financed under the first 2 objectives. Thus, the exchange of experience can rapidly be transferred into real action.

 Managing authorities can be directly involved in theprojects (e.g. URBACT II programme) in order to ensure the mainstreaming of the action to the main objectives.

TO GO BEYOND:

New funds, better rules : Overview of new financial rules and funding opportunities 2007-2013 : A beginners’ guide - European Commission, 2007 The guide, intended for newcomers to EU funding, depicts new rules in European funds and is divided in four parts:  overview of main funding opportunities  practical improvements of the new EU programmes for 2007-2013  transparency and effectiveness of the control  new programmes related to the Financial Framework 2007-2013   Beginners’ guide - 1.2 Mb

Get your project financed through the European programmes

Each EU Member State can benefit from the European funds under the "European Territorial Cooperation" objective.

The goal of the "European Territorial Cooperation" objective is to enhance the exchange of experiences between the European regions and find joint solutions on problems encountered. The main idea is to prevent the "re-inventing of wheel"and replicate faster successful policies and strategies implemented elsewhere. The added value of such projects is sometimes intangible – improved knowledge, capacities, contacts, and new experiences, sometimes pilot actions and hard investments are financed.

All EU Member States (and in some cases Switzerland, Norway and other non EU countries) can benefit from the cooperation programmes under the "European Territorial Cooperation" objective

3 types of cooperation are supported under this objective:

 Trans-national: Pilot projects, investment preparation and light investments are allowed within this type of cooperation. Regions (cities) are committed to a joint action . About 13 Interreg IV B Operational Programmes were approved for 13 different zones within the EU. Direct links to most of the official websites are in the table below.

 Interregional: Projects are strictly focused on the exchange of experiences and some light pilot initiatives - testing methodologies and tools. Investment activities will not be supported. 2 types of projects can be carried out: Regional Initiative and Capitalisation (later on Fast Track) projects. Only one zone exists that covers all EU territory.

 Cross-border: Eligible zones lie along all interior borders of the EU. Each zone consists of two or more Member States and is managed by one Managing Authority. Example of such cooperation is the Interreg IV A programme Czech Republic-Slovakia.

All programmes support sustainable energy projects! The links below will bring you directly to the programmes’ official websites where you can find news on calls for proposals, programme documents, application forms etc.

Trans-national cooperation	Interregional cooperation	Cross-border cooperation
INTERREG IV B  North West Europe  Alpine Space  Central Europe  South East Europe  Baltic Sea Region  North Sea Region  Atlantic Area  South West Europe  Mediterranean Area  Northern Periphery	INTERREG IV C  URBACT II  INTERACT II  ESPON II	INTERREG IV A

DON’T WASTE YOUR TIME

Save your time and have a look on the SUMMARY OF THE PROGRAMMES that we prepared for you. Should you need more information, visit the official websites and download the entire Operational Programmes documents.

Check the calls for proposals to be opened this autumn!

TO GO BEYOND

Financing sustainable energy projects through the Structural Funds and the Cohesion Fund in 2007-2013 This publication is useful for European municipalities, private companies, associations, energy agencies and other actors who plan to finance their sustainable energy projects from the Structural Funds and the Cohesion Fund in the next programming period 2007-2013. You will find here:  Overview of the European Funds and the European priorities in the field of sustainable energy in 2007-2013 .  List of Operational Programmes that will support sustainable energy projects in Bulgaria, Czech Republic, Lithuania, Poland, Slovakia, Romania and Slovenia in 2007-2013.  Concrete examples of the projects co-financed from the European Funds in the years 2000-2006.  Advises on project design.  Overview of other financial sources.  Useful contacts and documents. WelcomEurope WelcomEurope gives information on European funds and programs by sector updated 2007-2013. The website comprises a database which aims at finding the EU programs and funds to finance your project. It informs you of calls for proposal from EU institutions and of their deadlines.

Get your project financed from the national Operational Programmes

The European Cohesion Policy is practically implemented at national, regional and local level. The Member States (MS) analyse the situation in their country, identify their needs, areas in difficulty and disadvantaged social groups and set priorities for further development.

Taking into account the European priorities, they prepare a strategic document called National Strategic Reference Frameworks and decide how the EU funds will be spent.

Funds are then allocated to thematic Operational Programmes (OP). Each OP contains a set of priorities, eligible actions and beneficiaries.

The content of these documents is discussed and negotiated with the European Commission. When two parties reach an agreement, the European Commission adopts the programmes and provides an advance to the MS to allow them to set the programmes in motion.

Managing authorities (usually ministries or regional authorities) and implementing authorities (e.g. governmental agencies) then ensure smooth operation of individual OP.

The extent to which the MS include urban and sustainable energy issues into their OP and to which they delegate management of funds to the regional and local authorities varies from country to country.

In this section, you can find the overview of the Operational Programmes financing sustainable energy projects in the respective countries.

COMPARE YOUR COUNTRY WITH OTHERS!!!

TO GO BEYOND

EUROPEAN COHESION POLICY National Strategic Reference Frameworks For each European country, the booklet describes:  the investment allocated to the country for the 2007-2013 period in accordance with the 3 objectives  the targets of the National Strategic Reference Framework (NSRF) and the priorities chosen to achieve it  the translation of these priorities into Operational Programmes. Cohesion Policy 2007-2013: National Strategic Reference Frameworks Cohesion Policy 2007-2013: Factsheets The Inforegio website provides information about eligible european regions and financial allocations. For each country, it depicts the National Strategic Reference Framework and gives a summary of the current Operational Programmes. Cohesion Policy 2007-2013 SUSTAINABLE ISSUES IN OPERATIONAL PROGRAMMES EU Cash in Climate Clash The Central and Eastern European Bankwatch Network and Friends of the Earth Europe published the report «EU Cash in Climate Clash». They compared planned allocations for sustainable energy and public transport in the operational programmes of Central and Eastern European countries (CEE-10). The result? The analysis has revealed that energy effi ciency and renewable energy have each been allocated only 1% of all EU funds –-1.8 billion EUR in the CEE-10 countries taken as a whole! Read more about the results of this report (p. 9) and get know its author through the interview (p. 11) published in our publication TIME to use the Structural Funds for sustainable energy projects.

Examples of the projects co-financed from the Structural Funds

All around Europe there are many sustainable energy projects co-financed from the Strcutural Funds. They prove that it is possible to use these funds for such type of projects.

Do you want to refurbish your public buildings and reduce your energy bills?

Do you want to offer an energy efficient public lighting to your citizens?

Do you want to create new jobs and improve air quality through local production and use of biomass for heating?

Are you interested in any other projects that help you reduce energy bills in your municipality and invest them better in your community?

CHECK the projects already implemented elsewhere and INSPIRE YOURSELF. Your citizens will thank you.

Our database is available in 5 languauges: bg, cs, en, lt, pl, sk.

 Projects from all over Europe top web

  Projects from the New Member States down web

TO GO BEYOND

Projects coordinated by Energie-Cités and co-financed from the Structural Funds: REVE Jura-Léman Programme: Interreg III A France-Suisse Main objective:  Develop the European Display® Campaign encouraging local authorities to publicly display the energy and environmental performances of their public buildings using the same energy label that is used for household appliances.  Introduce the European Energy Award® in 8 French municipalities. RUSE project Programme: Interreg III C West Main objective: Encourage local actors to use the Structural Funds for financing sustainable energy projects. One of the main outputs are the overviews of the European and National Operational programmes financing sustainable energy projects, Good Practice Case Studies of the projects co-financed from the Structural Funds and other interesting information collected in the 7 issues of the RUSE Newsletter. All RUSE outputs are available in 6 languages: bg, cs, en, lt, pl, sk.

Financing sustainable energy projects through other financial sources

The Structural Funds and the Cohesion Fund are one of the major financial sources in the European Union but they are not the only ones.

Sustainable energy projects are often financed also through national and other grants, typical forms of financing such as bank loans credits and guarantees, innovative forms such as public-private partnership investments etc.

We recommend you to read the following documents summarising the financing opportunities for municipalities:

 New Forms of Financing Municipal Sustainable Energy Projects

The collection of 10 case studies from the ‘Old’ and ‘New’ Member States provides the overview of 10 different forms of financing that can be used in municipalities to finance sustainable energy projects.

 Financing Intelligent Energy Project in Municipalities

The outcomes of the 3rd BISE Forum focused on financing. The presentations and proceedings are a valuable source of information and experiences coming directly from European municipalities, institutions and private companies. The BISE Forum is the annual event organised by Energie-Cités and partners from the New Member States, Candidate Countries, Western Balkan and Ukraine within the European BISE Initiative.