Cities have a major role to play in scaling up investment in energy efficiency to meet climate goals. Standardization of energy efficiency project development and documentation is an essential part of building the financing framework but not the only part. The Investor Confidence Project's Investor Ready Energy Efficiency system provides an operational standardization framework that has been applied across 13 countries and building types to reduce risks, lower costs, and increase investment in energy efficiency projects.

1. The role of cities in increasing
investor confidence in energy
efficiency
Steven Fawkes
Covenant of Mayors
February 2018

3. To scale up we need to assemble the jigsaw of energy
efficiency finance
2017: USD 231
billion a year
invested into EE
2050: USD 3,000
billion a year
invested into EE
To achieve “66% 2oC” scenario
requires average investment
into energy efficiency > USD 1
trillion a year between 2016
and 2050

4. Cities can play a major role in assembling the jigsaw of
energy efficiency finance
Aggregate own estate
Local regulations and
standards e.g. MEES
Convene other real
estate owners
Standardised development &
documentation through Investor
Confidence Project
Enable low cost finance
including bonds and funds
Support innovative finance
mechanisms such as PACE
Link to vocational training
and education
Lead on quality standards
Standardized systems &
Underwriting

5. Standardization

6. Lack of standardization results in:
Greater performance risk
Uncertainty limiting demand
Higher transaction costs
Difficult to build capacity
Difficult to aggregate

7. An international framework that brings standardization, thus reducing
owner and investor risk, lowering due diligence costs, increasing
certainty of savings achievement and enabling aggregation.
Ensures transparency, consistency and trust-
worthiness through best practice and
independent verification.

8. The Investor Ready Energy Efficiency™ Certification
IREE™ is the quality mark like
BREEAM or LEED but for an ENERGY
EFFICIENCY RETROFIT PROJECT
IREE™ can be used with any building performance indicator – it is
certifying individual energy efficiency projects

9. Underwriting
Period
The IREE™ Certification is delivered prior to investment
decision
Development
Period
Invest Performance
Period

10. Industry
Buildings
- Apartment blocks
- Tertiary
What project types can be IREE™ certified?
District energy systems
Street lighting upgrades
Under
development
for EU2
2 Supported by Horizon 2020 grant Number: 754056
Available for
US & all EU1
countries
1 Supported by Horizon 2020 grant Number: 649836
Available for
EU2

11. IREE’s independent review and
certification of proposed projects:
• Gives owners confidence in
project development and savings
achievement.
• Enables the comparison of
projects and access to more
project investment.
• Can function as a “Tender in a
box” and underwriting criteria
for buildings and portfolios.
Benefits:
Project owners

12. • IREE reduces due diligence costs and
speeds underwriting.
• opens access to quality projects
through Credentialed Project
Developers
• increases confidence in project
fundamentals and engineering.
• Standard projects and document
packs with third party allows for the
aggregation of projects across
borders and programmes.
Benefits:
Investors

13. • Offers a repeatable project
process, aiding Quality Assurance
• Enables more project approvals
due to industry standards and 3rd
party review
• Differentiates your company and
increases credibility with customers
• Increases ability to connect with
finance, insurance, utility
programmes, without additional
transaction costs
Benefits:
Project developers

14. • Investor Ready Energy EfficiencyTM
is based on internationally
recognized and off-the-shelf
technical standards ready to
deploy.
• Ready made provider credentialing
and training programme.
• Allows for the ability to distribute
Quality Assurance costs to the
market.
Benefits:
Government
programmes

15. Paul Cullum HSV+B
quote

16. 2012 2013 2014 2015 2016 2017 2018
• 34 projects & programmes using
buildings Protocols
• 13 countries
• EU wide recognition
• >200 Allies
• 14 investors in Investor Network
with > €4 bn to invest
• HSB MunichRe confirming lower
risk & costs
• Industry Protocols launched

17. Summary
• We HAVE to massively scale up investment into EE
• Cities have a MAJOR ROLE to play in scaling up investment into EE
• Programmes need to address the 4 parts of the EE financing jigsaw
– Finance
– Build capacity
– Build pipeline
– Standardization
• STANDARDIZATION of project development and documentation is an essential part of
building the EE financing jigsaw - but not the only part
• Investor Confidence Project’s Investor Ready Energy EfficiencyTM system:
– is operational and available to use across buildings, industry & soon street lighting
– can be applied in all EU countries thanks to EC support
– reduces risks and transaction costs – validated by HSB MunichRe

18. Contacts
Steven Fawkes
ICP Senior Adviser
077 0223 1995
steven.fawkes@energyproltd.com
The ICPEU and I3CP projects have received funding from the European Union’s Horizon 2020 research and innovation programme
under grant agreement Numbers 649836 and 754056. The sole responsibility for the content of this document lies with the authors. It
does not necessarily reflect the opinion of the European Union. Neither the EASME nor the European Commission are responsible for
any use that may be made of the information contained therein.
Quitterie de Rivoyre
ICP Europe Project Manager
077 8022 1491
quitterie.derivoyre@eeperformance.org
europe.eeperformance.org
@icpeurope