As Scotland moves towards a low-carbon economy the public sector needs to lead by example. The budgetary rules governing capital expenditure vary across public sector organisations. However, most organisations will follow broadly similar principles in developing an investment/business case. Some public sector organisations, such as councils and universities are able to borrow; whereas others, such as NHS boards in Scotland find it more difficult.
Funded by the Scottish Government, we have been working with the public sector in Scotland for eight years. Our clients have invested approximately £21.4 million in energy efficiency projects in Scotland to date, saving the public sector more than £74 million over the lifetime of the projects.
We can offer loans to all of the Scottish public sector which are subject to the Public Bodies Duties in the Climate Change (Scotland) Act 2009. This includes Scottish Government and its executive agencies (such as Transport Scotland and Scottish Enterprise) 32 local authorities, universities, and non-departmental public bodies.
The Scottish Green Investment Portfolio is jointly resourced by Scottish Government, UK Green Investment Bank and Scottish Enterprise.
The primary sources of funding that we aim to access are the UK Green Investment Bank funds and Scottish Government’s Renewable Energy Investment Fund (REIF) managed by the Scottish Investment Bank.
Over the next few years the GIB will continue to support public and private investment in energy efficiency projects and stimulate take up. The GIB expects to commit several hundred million pounds to energy efficiency projects, as it works with public and private sector partners to accelerate energy efficiency investment. In the immediate future both GIB and its fund managers will focus on a broad range of technologies that reduce energy consumption and/or emissions:
Building retrofits (e.g. lighting, insulation, and glazing
Onsite generation (e.g. CHP, renewable heat, heat pumps)
Industrial process (e.g. motors, pumps, kilns)
Infrastructure (e.g. streetlighting, heat networks, transport, smart meters).
The European Investment Advisory Hub is Europe’s gateway to investment support! A joint initiative by the European Commission and the European Investment Bank under the Investment Plan for Europe, the Hub offers a single access point to a 360 degree offer of advisory and technical assistance services with the aim of strengthening Europe’s investment and business environment.
JESSICA – Joint European Support for Sustainable Investment in City Areas, is an initiative of the European Commission developed in co-operation with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). It supports sustainable urban development and regeneration through financial engineering mechanisms.
The Scottish Partnership for Regeneration in Urban Centres (SPRUCE) is a £50m Urban Development Fund funded by the Scottish Government and the European Regional Development fund under the JESSICA initiative (Joint European Support for Sustainable Investment in City Areas).
The European Energy Efficiency Fund (EEEF) was established in 2011 to operate with the mission ‘Advancing Sustainable Energy for Europe’, while mitigating climate change through financing of energy efficiency measures in the public sector, small-scale renewable energy and clean urban transport projects.
The Fund was capitalized with an initial volume of €265million. The eeef’s innovative private public partnership solution aims to have a European outreach by targeting the European Union’s 28 Member States. The Fund is currently financing 9 projects across Europe and working with 24 Cities and regional authorities in Europe with a commitment to grow its support in the future.