The International Network
for Sustainable Energy

Objectives and the use of funds:

1. Convergence objective (financed from ERDF, ESF, Cohesion Fund).

ERDF will be used for:
· Improving security of supply.
· Clean Transport.
· Improvement of energy efficiency and development of renewable energies.

Cohesion Fund will be used for:
· Transport and environment (as in the previous period but on a sustainable basis and with clear environmental benefit in the field of energy efficiency and renewable energy sources - new approach).

2. Regional competitiveness and employment objective (ERDF, ESF).
ERDF will be used for:
· Stimulating energy efficiency and renewable energy production.
· Development of efficient energy management systems.
· Promoting clean and sustainable transport in urban areas.

3. European territorial cooperation objective (ERDF).

ERDF will be used for:
· Reducing isolation through improved access to energy systems, enhanced inter-operability of national and regiona lsystems.
· Networking, exchange of experiences and good practice.

Distribution of the total EU cohesion policy budget: € 347 billion (current prices) is following :

Which Regions are Eligible for Funding?

The whole EU is covered by one or several objectives of the cohesion policy. To determine geographic eligibility, the Commission bases its decision on statistical data. Europe is divided into various groups of regions corresponding to the classification known by the acronym NUTS.

Cohesion Fund

Member States, which Gross National Income is lower than 90% of the EU average can benefit from cohesion fund: that is all the regions of the following countries: Bulgaria, Czech Republic, Estonia, Greece, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Portugal, Romania, Slovenia, and Slovakia

A phasing-out system is granted to Member States, which would have been eligible for the Cohesion Fund if the threshold had stayed at 90% of the Gross National Income average of the EU at 15 and not at 25. This only concerns Spain.

1. Convergence objective

Regions at level 2 of the NUTS classification whose Gross Domestic Product per inhabitant is less than 75% of the EU average are eligible for funding under the Convergence objective. They include:

• Bulgaria: the whole territory.
• Czech Republic: Støední Èechy, Jihozápad, Severozápad, Severovýchod, Jihovýchod, Støední Morava, Moravskoslezsko
• Germany: Brandenburg-Nordost, Mecklenburg-Vorpommern, Chemnitz, Dresden, Dessau, Magdeburg, Thüringen
• Estonia: the whole territory
• Greece: Anatoliki Makedonia, Thraki, Thessalia, Ipeiros, Ionia Nisia, Dytiki Ellada, Peloponnisos, Voreio Aigaio, Kriti
• Spain: Andalucía, Castilla-La Mancha, Extremadura, Galicia
• France: Guadeloupe, Guyane, Martinique, Réunion
• Hungary: Közép-Dunántúl, Nyugat-Dunántúl, Dél-Dunántúl, Észak-Magyarország, Észak-Alföld, Dél-Alföld
• Italy: Calabria, Campania, Puglia, Sicilia
• Latvia: the whole territory
• Lithuania: the whole territory
• Malta: the whole island
• Poland: the whole territory
• Portugal: Norte, Centro, Alentejo, Região Autónoma dos Açores
• Romania: the whole territory
• Slovenia: the whole territory
• Slovakia: Západné Slovensko, Stredné Slovensko, Východné Slovensko
• United Kingdom: Cornwall and Isles of Scilly, West Wales and the Valleys

A phasing-out system is granted to those regions which would have been eligible for funding under the Convergence objective if the threshold of 75% of GDP had been calculated for the EU at 15 and not at 25:

• Belgium: Province du Hainaut
• Germany: Brandenburg-Südwest, Lüneburg, Leipzig, Halle
• Greece: Kentriki Makedonia, Dytiki Makedonia, Attiki
• Spain: Ciudad Autónoma de Ceuta, Ciudad Autónoma de Melilla, Principado de Asturias, Región de Murcia
• Austria: Burgenland
• Portugal: Algarve
• Italy: Basilicata
• United Kingdom: Highlands and Islands

2. Regional competitiveness and employment objective

All regions which are not covered by the Convergence objective or by the transitional assistance (NUTS 1 or NUTS 2 regions depending on the Member States) are eligible for funding under the competitiveness and employment objective.

A phasing-in system is granted until 2013 to NUTS 2 regions which were covered by the former Objective 1 but whose GDP exceeds 75% of the average GDP of the EU-15.

Regions eligible for transitional assistance under the Competitiveness and Employment objective:

• Éire-Ireland: Border, Midland and Western
• Greece: Sterea Ellada, Notio Aigaio
• Spain: Canarias, Castilla y León, Comunidad Valenciana
• Italy: Sardegna
• Cyprus: tout le territoire
• Hungary: Közép-Magyarország
• Portugal: Região Autónoma da Madeira
• Finland: Itä-Suomi
• United Kingdom: Merseyside, South Yorkshire

The main national documents related to the utilisation of EU funds are called National Strategic Reference Frameworks (NSRF). They are already prepared and the NGOs are strongly encourage to take a closer look at it. In this document each member state defines:

• Strategy.
• National thematic and territorial priorities consistent with Community priorities.
• Regions eligible under Regional competitiveness and employment objective.
• Operational programs.
• Indicative annual allocation by Fund.

Funds are then allocated to thematic Operational Programmes (OP). Each OP contains a set of priorities, eligible actions and beneficiaries. The content of these documents is discussed and negotiated with the European Commission (EC). When two parties reach an agreement, the EC adopts the programmes and provides an advance to the MS to allow them to set the programmes in motion.

Operational Programme is an official document that covers different issue (e.g. OP Human Resources, OP Environment, etc.) and contains practical information such as actions and examples of projects it supports, eligible beneficiaries, co-financing rates, information on managing and implementing authorities etc. Many OP support the actions in the field of sustainable energy although they are not directly linked to environmental issues. Energy is sometimes hidden in the OP such as Environment, Infrastructure, Regional OP or even OP Human Resources that might support “soft actions” financed from the ESF, such as professional trainings for installers of renewable energy technologies or education of energy managers etc.

Managing authorities (usually ministries or regional authorities) and implementing authorities (e.g. governmental agencies) then ensure smooth operation of individual OP. The extent to which the MS include urban and sustainable energy issues into their OP and to which they delegate management of funds to the regional and local authorities varies from country to country.

How the Sustainable Energy is Tackled by the NSRF?

EU cohesion policy is based on the strategic document called Community Strategic Guidelines. This document was elaborated by the European Commission and the EU Member States. It contains several priorities concerning environment and sustainable use of energy that will be supported from the European Funds. Each Member State should comply with these priorities when preparing its national strategy and operational programmes.
There are several OP supporting implementation of sustainable energy projects already approved by the EC and published by member states. Several others will follow soon.

The overview below is based on approved and nagotiated versions of OP in Bulgaria, Czech Republic, Lithuania, Poland, Slovakia, Romania and Slovenia. The negotiated versions are a subject to change. Final versions are scheduled to be approved by the EC by the end of 2007 and published on the websites of relevant managing authorities.

OP in new EU Member States, which include Sustainable energy issues:

• Bulgaria
• Czech Republic
• Hungary
• Lithuania
• Poland
• Romania
• Slovakia
• Slovenia