Financial instruments are a type of financing often characterised by the combination of EU funds and public or private sector finance, above all banks, but also credit unions, savings, and loans associations or investment companies. Such a cooperation aims to trigger investments on the ground to deliver policy objectives, such as economic, social and territorial cohesion and support environmental policy, such as climate action.
In Europe, the European Investment Bank is one of the main banks which supports cities’ climate ambition, however national banks also have a strong role to play in supporting the financing of Covenant of Mayors signatories Sustainable Energy and Climate Action Plan (SECAP).
The EIB already supports public authorities with a variety of instruments:
Financial instruments, such as investment loans, framework loans, multisector urban and regional projects through EFSI (European funds for strategic investments), guarantees for local authorities and infrastructure investments or indirect financing through commercial and public sector banks at national level.
Advisory services such as the European Investment Advisory Hub (EIAH or the Hub) which act as a single access point to various types of advisory and technical assistance services.
Project development assistance, such as JASPERS and ELENA which provides grants for technical assistance focused on the implementation of energy efficiency, distributed renewable energy and urban transport programmes (see the dedicated Covenant booklet on project development assistance).
This publication is part of a series of 4 leaflets to guide local authorities through the wide variety of financing and funding opportunities for your energy and climate actions.