Investor Ready Energy Efficiency Launches in Europe
On 30 June, the Investor Confidence Project (ICP) Europe launched a new system of ensuring energy efficiency projects deliver the savings they promise and meet the needs of interested investors. ICP’s new Investor Ready Energy EfficiencyTM (IREE) certification, aimed at reducing transaction costs and increasing confidence in savings, will help engage private capital and scale up energy efficiency investments globally.
A National Health Service (NHS) retrofit project in Liverpool is the first to use the certification in Europe, which leverages best practices that reduce transaction costs and help ensure projects achieve the desired savings. The £13-million project was developed by the Carbon and Energy Fund with financing from Macquarie Group and energy performance contractor Engie (formerly Cofely).
“This is a landmark deal in energy efficiency financing”, says David Mackey at the Carbon and Energy Fund. "We have £100 million worth of projects in the pipeline which will be IREE certified - a clear signal to the market that we are open for business."
Supported by the European Commission’s Horizon 2020 programme, ICP Europe is a project of the Environmental Defense Fund developed to standardise energy efficiency upgrades using rigorous measurement and verification metrics in a way that makes them more attractive to investors and building owners alike.
“We need to harness the power of the market to turn energy efficiency into a true asset – cutting pollution, increasing economic productivity and bringing solid returns to investors,” said the Right Honourable Lord Barker of Battle, former UK Minister of State for the Department of Energy & Climate Change, who serves on the Environmental Defense Fund Europe board. “By standardising energy efficiency projects, ICP has the potential to connect investors with one of the most effective ways to achieve environmental results.”
IREE-certified retrofit projects have been originated by a credentialed project developer and verified by a credentialed quality assurance provider. Thus, owners and investors can rest assured projects were developed using best practices by the best professionals, and every calculation has been checked and verified by an independent body before they consider the investment.
“This new Investor Ready Energy EfficiencyTM certification has the potential to unlock Europe’s building retrofit market, which is worth upwards of EUR 100 billion per year,” said ICP project director Panama Bartholomy. “Launching the certification in Europe is a milestone for our project – and for enabling mass-scale investment across the sector.”
Interested parties are invited to contribute to ICP Europe’s efforts through the Technical Forum and help make energy efficiency a global asset class by joining the ICP Europe Ally Network.