F3, Sunshine member, created Latvian Baltic Energy Efficiency Facility (LABEEF), a facility to repurchase the long-term investments necessary for multifamily building renovation. LABEEF has one purpose: finance the Energy Performance Contracting (EPC) receivables from contracts it designs. These contracts are embedded in the guidelines for each type of EPC to further reduce risk and transaction costs: the process is standardized and transparent.
In more detail, the focus of LABEEF has been in derisking projects by proper identification of both risks and sources of risks, allocating risk to the stakeholder best able to control it. As a result, LABEEF purchases contracts from builders (the execution risk belongs to them) once the works have been completed according to the LABEEF contracts and guidelines. These rigorous guidelines were developed according to the expertise of professionals with long experience in the field and based on evidence from academic research and through consultations with all stakeholders. This includes due diligence by multilateral institutions such as the EBRD or the EIB. The guidelines will be reviewed annually to confirm their compliance with the most up-to-date protocols such as those of Investor Confidence Project or Transparense.
While the European Union supports up to 50% of investments in Energy Efficiency (EE) measures, LABEEF is leveraging this subsidy to develop an industry which will be subsidy free while providing owners with the necessary financing to fully renovate their homes. Otherwise, what is the point of investing in EE if the building suffers structural damages?
LABEEF receives funding from public and private investors. Currently one of the investors of the fund are European Bank for Reconstruction and Development.
At present, in the Multifamily Building Renovation Program, LABEEF offers financing for 80 multifamily building renovation and accepts three EPC packages: EPC, EPC+ and EPC++.