LIFE is the EU’s financial instrument supporting environmental and nature conservation projects throughout the EU
Under the Natural Capital Financial Facility (NCFF), the European Investment Bank (EIB) will provide loans and investments in funds to support projects which promote the preservation of natural capital, including adaptation to climate change, in the Member States. The total budget for the Investment Facility amounts to € 100 – 125 million for 2014-2017. The European Commission contributes € 50 million as a guarantee for the investments and finances a € 10 million support facility.
The main aim of the NCFF is to demonstrate that natural capital projects can generate revenues or save costs, whilst delivering on biodiversity and climate adaptation objectives. The NCFF is to establish a pipeline of replicable, bankable operations that will serve as a “proof of concept” and that will demonstrate to potential investors the attractiveness of such operations.
Recipients can be public and private entities, including public authorities, land owners and businesses. The size of NCFF projects will typically be between € 5 million and € 15 million. The NCFF intends to provide finance to project developers both directly as well as indirectly through financial intermediaries.