BENEFITS OF THE BEEF MODEL: Latvia
Without a robust financial market, Europe will not (1) effectively reach its ambitious climate goals and (2) attract financial investment in energy efficiency projects including building renovations. By participating in REFINE, The Funding for Future (F3) team aim to create a financially viable environment in Europe that facilitates building renovation.
Funding for Future established and now manages Latvian Building Energy Efficiency Facility (LABEEF), a Special Purpose Vehicle that forfaits future receivables from service providers after implementation of deep building renovations. These renovations allow the service provider to guarantee not just Energy savings, but more importantly, long-term Safety, Health and Comfort to residents.
During the project, F3 has provided its knowledge and experience and contributed to the analysis, as well as developing tools and reports. Our participation in the conceptual development and structuring of instruments and services has been extremely fruitful, working on the development of the Energy Efficiency project Rating Tool together with CAIXABANK stands out as a strong point.
The tool ensures a sound refinancing decision and correct pricing based on core project risks: default risk, project risk and Energy Efficiency Service Contract risk. It weighs risks from 3 different perspectives- EES providers, clients and the project itself.
The F3 team looks forward to presenting this tool in national training events in Latvia to showcase to stakeholders how EES projects can be objectively evaluated and use the tool themselves to assess projects.
While we have come a long way with many lessons learned, we believe that LABEEF can scale up the building renovation rate in Latvia. We have found that close cooperation with local stakeholders is fundamental, e.g. cooperation with Ekubirojs, which is an NGO in Latvia that supports and guides citizens and homeowners in their decision-making process of renovation as well as throughout the whole process to deliver safe and comfortable homes. Working together, F3 and Ekubirojs share knowledge to build a strong network that aims to provide projects with substantial social and environmental impacts of building renovation (Ekubirojs) and sustainable project financing and capital to create a project pipeline (F3).
Learn more about the BEEF model in the REFINE Refinancing Market Assessment Report.