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Climate Change

The EIB finances projects that lead to significant greenhouse gas emission reductions or contribute to adaptation to climate change and climate variability. The Bank offers attractive financing features such as longer grace periods and maturities and the possibility to finance up to 75% of the project cost on eligible projects including:

See also the section on EIB Products and Services.

Climate change considerations are systematically included in the Bank’s internal appraisal procedure. All projects are routinely screened for their potential to mitigate climate change and generate carbon credits and adaptation requirements are considered at design stage to make the projects climate-proof.

EIB Climate Change Initiatives

The EIB has established a simplified and accelerated process, the Global Authorisation (GA) Mechanism, for the financing of small and medium scale projects (public or private) outside the EU aimed at promoting climate change mitigation and adaptation investments, with special emphasis on carbon credit generating projects.

The EUR 5 million Climate Change Technical Assistance Facility (CCTAF) provides advance funding for activities associated with the development of project-based carbon credits under the Joint Implementation (JI) and Clean Development (CDM) mechanisms of the Kyoto Protocol on a conditional loan basis. It may involve three stages of support:

  • Phase I (carbon feasibility study);
  • Phase II (preparation project documentation for submission to the CDM Executive Board (or JI equivalent);
  • Phase III JI/CDM project validation and registration.

EIB & Carbon Finance

The Multilateral Carbon Credit Fund (MCCF) is designed to develop the carbon market in countries in transition and to help EBRD and EIB shareholders and other parties to meet their mandatory or voluntary emission reduction targets. The Fund only sources and purchases carbon credits from projects financed by the EBRD and/or the EIB in countries eligible for EBRD operations. The Fund also facilitates “Green Investment Schemes” in which the proceeds of state-to-state trading of carbon credits are used to finance climate friendly projects in the selling country. The MCCF aims to stimulate and complement private sector participation in the carbon market. The size of the MCCF has aggregate commitments of EUR 190 million of which EUR 150 million for project-based carbon credits and EUR 40 million for green investment schemes.

The Carbon Fund for Europe (CFE) is co-managed by the World Bank and EIB and has at its disposal EUR 50m.. It is designed to help European countries and companies in the EU ETS meet their Kyoto commitments. It helps developing countries achieve sustainable development by fostering investment in clean technology projects. The CFE can also buy carbon credits generated after the end of the Kyoto commitment period in 2012 – up to a limit of 40%.

The EIB/Kreditanstalt für Wiederaufbau (KfW) Carbon Programme, a risk sharing arrangement between the EIB and KfW, focuses on helping EU-based small and medium-sized enterprises to access carbon credits for voluntary or statutory compliance purposes. It is directed at the market participants normally excluded from such funds due to their limited purchasing requirements and lower credit standing.

The Post 2012 Carbon Credit Fund is designed to support environmentally beneficial projects from 2012 onwards and is the first dedicated facility of its kind. The fund gives a clear signal to the market of the EIB and its partners’ confidence in the development of a post Kyoto regime. It has been established in collaboration with Caisse des Dépôts, Instituto Crédito Oficial, KfW, and the Nordic Investment Bank. The fund will exclusively purchase and trade Post 2012 credits, thereby supporting the development of projects that help the environment by extending their carbon-based revenue stream. A consortium comprised of Conning Asset Management (Europe) Limited and First Climate has been selected as Fund manager.