I. Title of the Best Practice
Guaranty Fund for Long Term Investments to Prevent GHG Emissions
II. Overview of the Best Practice
A. Characteristics of the measure
1. Objectives
Small companies face difficulties to get long or medium term loans from banks : the risk on their activity prevent the access to capital. A guaranty fund is created by the French Agency on Environment and Energy Efficiency (ADEME) to guaranty loans contracted by small and medium size companies through banks to finance investments on energy savings.
2. GHG targeted
Mainly CO2 but potentially any gas
3. public targeted
Small and medium size companies (industrial or commercial)
4. Design of the measure
A fund (117 Millions Francs e.g. 18 Millions Euros) is created by the French agency for environment and energy efficiency and managed by a public financial institution (SOFARIS) ; the projects of investments in energy efficiency proposed by small and medium companies to bankers could get a guaranty on 70% of the loans (any bank have access to the fund).
A project is systematically eligible to the guaranty fund if it has been identified through a diagnostic supported by ADEME (French agency on environment and energy efficiency) and if the length of the loan is above ten years (see best practice 1). In other cases the project has to be evaluated by ADEME to be eligible.
The projects concerned are in the field of energy efficiency or renewable energy implementation.
B. Reasons for inclusion as a Best Practice
This procedure is a new measure implemented in France (evaluation is ex-ante).
The public cost is limited since the risks are mutualized. The risk is assessed to represent, in average, 10% of the fund, 100 Millions Francs generating 1 billion Francs of investments.
The impact, at the national level, to 2010 is estimated to 15 billion Francs (2,3 billion Euros) of cumulative investments inducing a reduction of CO2 emissions of 2 Million tons of carbon equivalent in 2010.
III. Categorizing the Best Practice
1. classification : incentive
2. social actors involved :
3. Sectors
4. Target (Greenhouse Gases)
IV. List of Attachments
V. Contacts
F. Moisan Director of strategy and Communication
ADEME : Agence de l'Environnement et de la Maîtrise de l'Energie
27 Rue Louis Vicat, 75015 Paris France. |
