• GNE Finance is Bringing an Innovative PACE financing to Europe

  • Brussels: November 13, 2017

     

    We are delighted to announce that GNE Finance, in collaboration with 7 partner organizations, won a prestigious Horizon 2020 grant of €2.4 million to bring “Property-Assessed Clean Energy” (PACE) Financing to Europe under the initiative “EuroPACE”.

    The objective of the project is to implement an innovative on-tax financing mechanism to boost energy efficiency investment in existing residential homes and buildings. EuroPACE will pioneer the mechanism in a city-wide pilot programme in Spain and then develop a standardized implementation toolkit for replication and scale-up across Europe.

     

    EuroPACE aims to dramatically increase energy generation and efficiency investments in the residential stock in Europe. The project impact will go far beyond energy savings to produce a positive social impact for each Euro invested in home renovations. It will contribute to the creation of resilient and vibrant communities that enjoy economic growth and healthy environments while also addressing climate change goals.

    Dr. Steve Fawkes, Managing Partner, EnergyPro Ltd & Senor Adviser, Investor Confidence Project noted: “Over the last few years PACE financing has transformed the energy efficiency market in the US. Although Europe is more diverse than the US in its property tax systems the EuroPACE project will address the barriers and test practical solutions. It is a great first step to introducing PACE type mechanisms into Europe and everyone with an interest in accelerating the uptake of energy efficiency should be following its progress closely.”

     

    David Gabrielson, Executive Director of PACENation said: “We are happy to see the PACE model being adopted in Europe. In the US, the PACE market reached over $4 billion and created over 45,000 jobs.”

    Sean Kidney, CEO of Climate Bonds Initiative commented: “Household energy efficiency improvements are vital to cut energy bills, create jobs as we upgrade — as well as helping to deliver the 40% of Europe’s emission reductions that need to come from the built environment.” This project will be an important contributor.”

    EuroPACE is inspired by a successful PACE financing model pioneered in the US. The PACE market in US has reached over $4 Billion in funded projects. PACE is used to pay for energy efficiency, renewable energy, and water conservation upgrades to buildings. PACE financing covers up to 100% of a project’s soft and hard costs and is repaid as a charge added to a property tax bill over a term of up to 20 years.

     

    PACE can pay for new heating and cooling systems, lighting improvements, solar panels, water pumps, insulation, and more for almost any property – homes, commercial, industrial, non-profit, and agricultural. The PACE mechanism solves one of the critical barriers to energy efficiency and renewable energy investment by providing homeowners with long-term financing that stays with the property upon sale.

     

    EuroPACE will adopt best practices from the US PACE market and further enhance its reach, scope, and overall impact to adapt it to Europe.

     

    For more information please contact Kristina Klimovich via email: k.klimovich(at)gnefinance.com.

    About Global New Energy Finance

    Global New Energy Finance (GNE Finance) is an Advisory and Investment Manager for Sustainable Infrastructure and Climate-Aligned Projects that brings the expertise, track-record and network to promote, structure, and finance clean energy projects. GNE Finance is based in Barcelona, Spain and Amsterdam, the Netherlands. GNE Finance’s mission is to bring PACE financing to Europe by leading the EuroPACE project and promoting the idea with the public and private sectors. The company is positioned to be the first PACE provider in Europe and launching a EuroPACE platform for investment aggregation and securitization.