European Fund for Structural Investment (the EFSI)
ESFI is targeted towards overcoming the investment gap in the EU by mobilizing private financing for strategic investments in key sectors, including strategic infrastructure such as: digital, transport and energy; education, research, development and innovation; expansion of renewable energy and resource efficiency; and support for smaller businesses and midcap companies.
The EFSI further supports projects which aim at: the use of renewable energy; energy efficiency and energy saving initiatives; and the development of infrastructure interconnections for energy.
According to the EFSI Regulation in order to be eligible for EU support projects must:
- be economically viable according to a cost-benefit analysis performed in consistence with EU standards;
- be consistent with EU policies and the objectives of smart, sustainable and inclusive growth, quality job creation and economic, social and territorial cohesion;
- provide additionality;
- maximize where possible the mobilization of private sector capital; and be technically viable.
Additionality, as defined in the EFSI Regulation, the support is directed to projects that address market failures or sub-optimal investment situations that would otherwise not be carried out. The projects must be economically viable and compatible with EU state aid rules and have a higher risk than EIB standard lending.