ICF CATALUNYA EE SOCIAL HOUSING

The project will finance the promotion of 7.000 social and affordable housing with high-energy efficient standards to rent in the region of Catalunya.

The aim is to reduce energy consumption, which in turn contributes to mitigate the effects of climate change, lower air pollution and increase security of supply. Additionally, the project will contribute to alleviate the unmet demand for social affordable housing in the region.

The Project addresses sub-optimal investment flows into highly energy efficient new buildings, as a result of non-internalized positive externalities from energy savings and GHG emission reductions, split incentives between tenants and landlords, as well as information asymmetries.

The Project is expected to increase the supply of social and affordable housing for rent, improving the social mix across the region of Catalonia and promting greater social inclusion. The Project will contribute to sustainable urban development also with the provision of high-quality and energy efficient housing accommodation including climate mitigation and adaptation measures. It will reduce GHG emissions, will improve the living conditions of households with increase thermal comfort, and will reduce the energy bills, alleviating therefore energy poverty.

The underlying investments in energy efficiency in residential buildings will support the Bank's lending priority in the energy efficiency sector and 100% of the operation will contribute to the EIB's Climate Change Mitigation objective.

The operation supports EU energy efficiency objectives and is fully aligned with the EU Energy Performance of Building Directive (EPBD) and the Energy Efficiency Directive (EED).

The Project is in accordance with the provisions of the new Leipzig Charter for sustainable urban development, and the 2022 Nice Declaration on affordable, sustainable and resilient housing. The financing proposed offers features such as revisable rates and longer grace periods and tenors than available in the market at present. These features improve the affordability of the Project.

The project, which will comply with the EU Directive (2018/844/EU) on the Energy Performance of Buildings, will bring positive environmental benefits by reducing greenhouse gas (GHG) and air pollution emissions. At the construction stage, its implementation may lead to an increased noise and vibration level as well as affect air quality. Adequate mitigation measures will be taken together with the enforcement of best practices. The promoter's environmental management capacity to properly apply the relevant EU Directives will be verified during appraisal - particularly with regard to EU Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by 2014/52/EU, EU Strategic environmental assessment (SEA) Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. Some of the projects may fall under Annex I or Annex II of the Directive EIA Directive 2011/92/EU amended by 2014/52/EU. In these cases the promoter has to act according to the provisions of the aforementioned Directive leaving it to the competent authority to decide in line with the Directive whether an EIA procedure is needed or not. The project will be appraised and monitored in line with the EIB's policies, including the Environmental and Social Sustainability Framework.

The final beneficiaries, social housing providers, fall under public procurement. The promoter has to ensure that contracts for the implementation of the projects are tendered in accordance with the relevant applicable EU procurement legislation.