LEVERAGE Accelerator Glossary

Taking into account the fact that some of the terms that are important in the context of the LEVERAGE Accelerator are not used in a uniform way throughout Europe, we present the following list of definitions:

  • Public bodies (PB): According to EED 2023/1791 public bodies are defined as national, regional and local authorities and entities directly financed and administered by those authorities but not having an industrial or commercial character.
  • Private finance partners (PFP): Private financial institutions that are involved in the implementation of an innovative financing scheme. E.g. thematic investment funds, commercial banks, crowdfunding platforms, and others.
  • Outsourcing models: Models where an external third party implements, operates and finances a sustainable energy investment in order to then refinance from regular fees for the provision of a long-term service (building operation, achieving a cost saving, energy supply, etc.). The technical responsibility for the investment and a (large) part of the economic risk shifts to the external third party.
  • Energy service model: A specific outsourcing model, where an energy service provider improves the energy efficiency in a client’s facility. The improvement of energy efficiency shall be measured and verified over a contractually defined period of time through contractually agreed methods. If the energy service includes financing of investments, the energy service provider is refinanced by regular performance-based remuneration. In this case, the energy service model provides the basis for innovative financing schemes.
  • Public Private Partnership (PPP) model: A specific outsourcing model where a long-term contract between a private party and a government entity is concluded, for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance. PPP models provide the basis for innovative financing schemes.
  • Innovative financing scheme: Any kind of scheme that enables public bodies to overcome debt limits and other financing barriers for the implementation of sustainable energy investments.
  • Project finance: The funding of long-term public infrastructure or public service projects using non-recourse or limited recourse financial structure.
  • Concessional finance: Concessional finance is below market rate finance provided by major financial institutions, such as International Financial Institutions to accelerate specific development goals (in the case of the LEVERAGE accelerator, more sustainable energy investments).
  • Sustainable energy investment: Capital-intensive energy efficiency and decarbonisation investment, in the context of the LEVERAGE accelerator related to investment in public buildings, public lighting, water supply, wastewater management and public vehicle fleet.
  • Implementation projects: Implementations projects are defined in the LEVERAGE acclerator as projects derived from a public bodies’ portfolio where a term sheet has been signed. The signing of the term sheet is the critical benchmark as this indicates a commitment to fund the project and is achievable within the life of the project.