GRENOBLE METROPOLE URBAN REGENERATION

This framework loan will co-finance multi-sector schemes included in the 2023-2030 Investment Programme of the Grenoble-Alpes Metropole, in particular its climate and environmental objectives.

The project aims at supporting the implementation of the Climate, Air and Energy Plan 2020-2030. Eligible sectors comprise, among others, energy renovations in buildings, social housing, energy transition, sustainable mobility, urban renovation, air quality and green areas.

The Project is structured as a Framework Loan to support selected investments included in the Grenoble-Alpes Metropole (GAM) 2021-2030 Pluriannual Investment Plan, which ambition is to address climate change, biodiversity protection and achieve carbon neutrality. These goals are set also considering the need to ensure the principles of solidarity and social justice within the territory as well as the necessary economic development and provision of services to the residents.

The Project is thus supporting the implementation of the GAM's Development and sectoral strategies, including, among others, the 2020-2030 Metropolitan Climate, Air, Energy Plan and the Intercommunal Local Urban Plan. The Strategic Framework supported under this Project is deemed as sound and provides for an integrated, mixed, sustainable, and resilient development in the territory.

The Project is consistent with the EU Framework for Urban Development and Regeneration, Energy and Water and Sanitation, which are the key sectors addressed in this Project. Furthermore, the Project is also aligned to the EIB strategies and guidelines on Urban Lending Review, the Energy Lending Policy, the Transport Lending Policy, and the Water Sector Lending Orientation.

The Project addresses several market failures as eligible sectors include public goods (e.g. wastewater treatment) and quasi-public goods (e.g., bicycle trails, parks and open spaces) in which the public administration is investing. In addition, the Project addresses externalities linked to sub-optimal investment flows into highly energy efficient (RE), renewable energy (RE) and resilient public infrastructure addressing climate action and environmental sustainability. The Project is thus expected to generate positive economic and social externalities. It also contributes to address

climate and environmental externalities delivering significant positive effects.

The advice provided to this Project is deemed as Good. It has contributed to the structuring of the operation to align it better with the goals of the EIB Climate Bank Roadmap (CBR) and to maximize the Project's contribution to the EIB Climate Action and Environmental Sustainability (CA&ES) objectives.

This Project is deemed aligned with the CBR and to a low carbon and resilient pathway, consistent with the Paris Agreement goals and principles. Its contribution to the Bank's CA&ES objectives is estimated at approximately 94% of the total project investment cost.

Finally, the EIB's involvement in the financing of the project will lead to the improvement of the promoter's financial profile by diversifying its funding base, increasing its debt maturity structure and lowering its average cost of funding.

The compliance with the relevant EU Directives will be verified during appraisal: Directive 2014/52/EU amending the Environmental Impact Assessment (EIA) Directive 2011/92/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC. For new and refurbished buildings, the compliance with EU Directive 2010/31/EU on Energy Performance of Buildings will be further examined during appraisal.

The EIB will require the promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/23/EU / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC] as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.