FLAG is among the first 49 institutions accepted as members of the European Energy Efficiency Financing Coalition. The Coalition is a new mechanism for enhanced cooperation between the European Commission and the 27 Member States of the European Union, established as a result of the Joint Declaration on Energy Efficiency Financing of 19.12.2023. The main objective of the Coalition is to stimulate the attraction of more private investment in energy efficiency projects through the active involvement of financial institutions from Member States. It is the first cooperation framework of its kind, which promotes market participation in policy implementation and provides support to EU countries in defining market-based solutions.
The Coalition was announced in the Communication "EU Save Energy", part of the REPowerEU plan, and responds to the call to European leaders to increase investment in energy efficiency by the European Council in its conclusions of 20-21 October 2022 and of 15 December 2022. The legal basis for this initiative is Article 30(7) of Directive (EU) 2023/1791 on energy efficiency.
The first call for membership of the Coalition for Financial Institutions was open from the end of June to the end of September 2024. It was aimed at public and private financial institutions such as banks, investment firms, asset managers and insurance companies authorised to conduct business in the Union, as well as their respective representative associations.
Out of 73 applicants under the first call, 49 were accepted to join the initiative, with a wide range of institutions covering all 27 EU countries. FLAG is the Bulgarian representative in the Coalition. The selected financial institutions will now engage directly with the Commission and the Member States and will participate in the co-creation of the Coalition’s work programme.
Using the experience and specific studies of the Energy Efficiency Financial Institutions Group (EEFIG), the coalition will be organized in three different working directions: policy level, expert group and national centers/hubs. Within the framework of the national level, active interaction between stakeholders will be sought to identify the most appropriate and applicable solutions for financing energy efficiency, tailored to the specifics of the specific market.
In connection with the launch of the implementation of the financial instrument FLAG-FICET for the clean energy transition, aimed at Bulgarian local authorities and more specifically the eligible scheme for financing EE measures in public buildings, the FLAG Fund has developed and is offering since June 2024 a financial product, including free technical support for preparation and an investment loan for project implementation. By participating in the coalition, the FLAG Fund will engage as an active partner for financing EE measures, ready to expand the necessary expertise in order to respond to the increased commitments of public authorities in Bulgaria.
