Policy efforts against climate change have now started focusing on achieving the targets of 2030 as the next cornerstone of meeting the Paris Agreement goals.
- environmental protection
- Online only
- External event
As of this year, as part of the new European Green Deal, the European Union (EU) has already updated its greenhouse gas (GHG) emission reduction target for 2030, from 40% to 55%, in order to stay on a path towards climate neutrality by 2050. To achieve the updated target, significant emphasis is expected to be placed on the built environment, and notably on financing energy efficiency actions.
Pay-for-Performance (P4P) schemes are innovative market schemes for supporting investments in energy efficiency. These schemes are interesting since they allow to attract private capital in the energy efficiency market, and they foresee the involvement of energy utilities and aggregators. Thus, they enable energy efficiency to be rewarded as an energy resource and a new grid service while turning the energy efficiency retrofit project’s value into an investable asset for private financing. Despite the conceptual simplicity of these mechanisms, solid and innovative business models are necessary to support their development and implementation.
The P4P approach has been broadly used in the U.S, but its applications are scarce in the EU. Through the past years, the H2020 SENSEI project has been adjusting and developing the concept to match the European market. In this webinar, we will introduce how profitable business models can be designed based on the P4P concept to not only support the Green Deal goals but indeed to make for great business cases. This effort will be supported by a speaker from the U.S. who will share practical examples of the P4P business models and, with that as an onset we will discuss the potential for piloting and implementation of P4P schemes in the European Union.