European Investment Bank, Solas in energy efficiency initiative

LUXEMBOURG, 22 February 2022: The Solas Sustainable Energy Fund ICAV, a new EU-focused fund targeting energy efficiency investments, has reached its first close with €140 million. Making the announcement through a Press release, the European Investment Bank (EIB) said it has committed a €30 million cornerstone investment to SSEF, backed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe. EIB said that as one of the largest providers of climate finance, it supports projects that promote the priorities and objectives of the European Union.

According to EIB, the SSEF also signed an agreement with the Private Finance for Energy Efficiency (PF4EE) support scheme, a joint initiative launched by the European Commission via the LIFE programme and the EIB.

One of the goals of PF4EE is to encourage private institutional investors, such as insurers and pension funds, to invest in European energy efficiency infrastructure, particularly in the small- and medium-sized (SME) sector. Further cornerstone investors of SSEF are the Ireland Strategic Investment Fund (ISIF), IDEAL insurance as well as MEAG, the asset manager of the Munich Re group.

EIB said that by virtue of being a specialist investment advisor in the energy efficiency sector, Solas Capital will advise the fund. EIB said Solas Capital partners with a wide variety of leading energy service companies, project developers, equipment manufacturers, and public-sector bodies across the European Union to help facilitate their access to tailor-made financing and enable new investment in energy efficiency.  

According to EIB, SSEF will offer funding for energy-saving business models focusing on the renovation of existing infrastructure, particularly buildings, using established and reliable energy-efficient technologies, such as modern heating and cooling systems, combined heat and power units, solar rooftops, building fabric, LED lighting, etc. Projects in both the public and private sectors will be supported, including the SME sector, which faces more challenges in securing finance, EIB said.

According to EIB, the project would entail an initial investment into a project portfolio of energy efficiency measures in buildings. It added that buildings are responsible for 40% of the European Union’s energy consumption, and 36% of its CO₂ emissions.

To achieve near zero emissions in buildings, crowding-in private institutional capital will be essential, as public funding is not sufficient. SSEF, EIB said, is offering the market a unique financing solution and is closing the gap between energy efficiency funding needs and institutional investor requirements.

Kadri Simson, The Commissioner for Energy, said: “Investing into energy efficiency, renewable energy generation and building renovation is at the core of the European Green Deal and key to bringing down energy bills. The Solas Sustainable Energy Fund will combine the financial support from EFSI and PF4EE to mobilise affordable private financing for investments in the energy performance of buildings, including onsite renewable energy production.

The PF4EE guarantee will set the gold standard for equity investment fund initiatives and engage institutional investors in green assets. This will bring us one step closer to achieving the EU’s Green Deal ambition of becoming climate neutral by 2050.”

Thomas Östros, Vice-President, European Investment Bank, who is responsible for energy financing, said: “As Europe’s climate bank, the EIB is proud to be a cornerstone investor in the Solas Sustainable Energy Fund, which will help bridge the major financing gap for energy efficiency projects. Reducing the energy use in buildings is crucial to achieving a carbon-neutral economy in Europe by 2050. We believe that our commitment in this fund will catalyse further investments to meet the immense building renovation challenge.”

JCI named to FT European Climate Leaders list

CORK, Ireland, 18 May 2021: Johnson Controls (JCI) said it has been named to the inaugural FT Climate Leaders in Europe list.

Europe’s Climate Leaders 2021 is a list of companies across Europe that have shown the highest reduction of their emission intensity – that is, core greenhouse gas emissions in relation to revenues, between 2014 and 2019. Johnson Controls reported that it was one of only 300 companies selected from 4,000 across Europe.

“We are extremely proud to be recognized by the Financial Times as a European climate leader,” said George Oliver, chairman and CEO, Johnson Controls. “Sustainability has long been at the heart of everything we do, and it is an honor to be included on this prestigious list. With COP26 approaching at this critical moment in the battle against climate change, it is important that companies continue to play their part in cutting emissions and delivering clean, sustainable solutions across the entire value chain.”

According to JCI, companies on the list – compiled by research firm, Statista – were invited to submit emissions reported following the emission categories of the greenhouse gas protocol (scope 1, 2 and 3). In addition, Statista scrutinized publicly available data, mainly from financial and non-financial reports as well as from CDP (formerly the “Carbon Disclosure Project”).

Although JCI reports all three emissions scopes, the ranking only considers scope 1 and scope 2 emissions, since not all companies publish their scope 3 emissions, it said. Since 2002, JCI said, it has reduced its emissions intensity by more than 70% – equivalent to the carbon sequestered by 17,000 acres of forest. The company said it has also helped its customers save more than 30.6 million tonnes of CO₂ globally and $6.6 million through guaranteed operational savings.

At the European level, JCI said, it has been effectively supporting the EU’s ambition to become carbon neutral by 2050. The European Commission recently committed to at least 55% cuts in greenhouse gas emissions (from 1990 levels) by 2030 under the European Green Deal. Decarbonizing Europe’s building stock through the European Commission’s Energy Performance of Buildings Directive has a crucial role to play in this effort – 40% of greenhouse gases come from buildings, the company said.

According to JCI, digitalization has been recognized as a key enabler for the building renovation wave in Europe and the rest of the world. Already, JCI said, it has been deploying its OpenBlue digital platform for optimizing buildings sustainability across its entire value chain – drastically improving the company’s own environmental impact and helping customers consume less energy, conserve resources and identify pathways to achieving healthy, net zero carbon communities.

Katie McGinty, Vice President & Chief Sustainability, Government and Regulatory Affairs Officers, JCI, said: “We are making positive change within our own corporation and believe we are uniquely positioned to help customers and suppliers achieve their sustainability goals. By driving global change, we are ultimately creating an environment for healthy people, healthy places and a healthy planet.”

JCI said it is also helping meet the growing demand for energy-efficient technologies. It said it has provided heat pump solutions for customers at more than a dozen district heating and cooling applications in Denmark, Finland, France, Germany, Italy and Norway.

Heat pumps, it said, have an important role to play in decarbonizing buildings and industry. They have long been in the DNA of industrial refrigeration – utilised in food and beverage, dairy and other process industries for reclaiming low-temperature waste heat and turning it into low-cost, high-temperature heat.