Structural Funds: New simplified rules

By Miriam Eisermann on 28 July 2009

As a response to the current crisis, the European Commission has just announced changes that are intended to facilitate the implementation of Cohesion Policy programmes. Investments in sectors linked to energy efficiency and the use of renewable energies (for ex. in housing) will be encouraged, given their considerable potential to provide growth and jobs.

Local authorities wanting to benefit from financial means to improve their local energy management should consider the following changes:

• Projects under the European Social Fund will be reimbursed 100% by the European Commission (at request of a Member State) by December 2010. This is a Commission’s response to the rapid increase of unemployment in Europe and it will certainly support the creation of green jobs and trainings (e.g. energy managers, technicians, architects, builders, advisory services...)

• The European Regional Development Fund will support the renovation or construction of housing for communities faced with social exclusion, in both rural and urban areas. Previously, the construction of housing was not eligible under the ERDF and only housing in urban areas was eligible for renovation.

• There is a possibility to set up dedicated financial engineering instruments in support of investments in sectors linked to energy efficiency and the use of renewable energies in housing, in addition to the already existing financial engineering instruments for other domains. The Structural Funds will finance: Urban development funds, i.e. funds investing in public private partnerships and other projects included in an integrated plan for sustainable urban development. Funds or other incentive schemes providing loans, guarantees for repayable investments, or equivalent instruments for energy efficiency and use of renewable energy in buildings, including existing housing.

• A single category of ’major project’ was created under the Cohesion Fund. Previously, the Commission’s approval was required for projects where the total cost exceeded € 25 million for the environment and € 50 million for other sectors. The threshold for approval is now set at € 50 million for all areas. Smaller-scale environmental projects will therefore be able to start up more quickly.

In this context, we have the pleasure to inform you that, from now on, the member cities of Bielsko-Biala (PL) and Brasov (RO) will follow up more closely on the EU Regional Policy within the Energie-Cités Board of Directors.

More information: click here

For any further information, please contact Jana Cicmanova

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