GLOBAL ENERGY EFFICIENCY AND RENEWABLE
ENERGY FUND (13809/06)
Letter from the Chairman to Ian Pearson
MP, Minister of State for Climate Change and the Environment,
Department for Environment, Food and Rural Affairs
Sub-Committee B considered this document, and
your Explanatory Memorandum, at its meeting on 22 January 2007.
We share your welcoming of this "novel
approach" to the issue of improving energy efficiency. We
hope that this fund will play a vital role in financing projects,
which have an important role to play in the security and sustainability
of energy supply, which might not otherwise have got off the ground,
particularly in the developing world.
You mention in your EM that the proposal has
been put to Council. We would be grateful if you could give us
an indication of the response it received from the Member States,
as well as for your expectations on where the minimum additional
€20 million capital will be found. The Committee will return
to the issue in due course to review the success of the scheme.
In the mean time we would be grateful to you for your assessment
of how effectively the allocation of funds will be monitored to
ensure that they are used as intended by the Commission purely
to finance these projects. We are content to lift scrutiny on
this document.
25 January 2007
Letter from Ian Pearson MP to the Chairman
I am writing in response to your letter of 25
January 2007 on the European Commissions' Global Energy Efficiency
and Renewable Energy Fund (GEEREF).
You asked for further views on three issues,
the response of member states to the proposal, the source of the
necessary additional $20 million and the governance and monitoring
of the funds by the Commission regarding their allocation and
proper use. My officials have sought clarification from the Commission.
On the first of these points, the reaction of
member states has, as expected, been very positive. The launch
of the fund comes at a time when much attention is focused on
the issues surrounding climate change, development and the necessary
investment in sustainable sources and usage of energy. The GEEREF
fund is acknowledged as providing a useful mechanism to accelerate
the transition to a global low carbon society whilst retaining
a focus on the development needs of areas such as Sub-Saharan
Africa.
Secondly I am pleased to tell you that in addition
to the initial €80 million pledged by the Commission towards
the initial minimum closing value of $100 million there have been
pledges from the German and Italian Governments of €24 million
and €8 million respectively and expressions of interest from
the Dutch and Norwegian Governments.
Regarding the appropriate allocation of funds,
the Commission has appointed Triodos Investment Management as
the fund managers for GEEREF. Triodos have a strong track record
in this sector including 25 years involvement in sustainable "green"
banking. €2.5 billion assets under management with €1.1
billion in specialised investment funds, renewable energy funds
in the UK and Luxembourg and 12 years experience in developing
countries including management of €70 million in microfinance
funds. The funds board of directors will be appointed by its shareholders
and this board will provide the main governance input to the GEEREF.
With a minimum of €10 million required for a seat currently
Germany and the Commission are eligible to be board members. Underlying
the board will be an investment committee that will make individual
investment decisions. There is a regular (annual and quarterly)
reporting and planning procedure.
Given the strong track record of Triodos as
fund managers and the clear reporting structure described to us
by the Commission I am content that the funds will be allocated
as intended.
If you require any further clarification or
information I would be happy to provide it.
26 February 2007
Letter from the Chairman to Ian Pearson
MP
Thank you for your letter of 26 February, which
Sub-Committee B considered at its meeting on 12 March.
We were very grateful to you for setting out
the level of support from other Member States; the additional
money pledged by Germany and Italy; and the corporate governance
structure for the GEEREF. We trust that you will update us should
any significant developments be made.
19 March 2007
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