Signature(s)
Summary sheet
- Industry - Construction
The facility, in partnership with energy service companies, will co-finance a lending platform that supports small-scale energy efficiency and distributed renewable energy generation projects across Europe.
The aim is to support energy services companies (ESCOs) to develop energy efficiency and small distributed renewable schemes. Therefore the project supports both national and EU's energy lending priorities as well as climate goals and the security of energy supply objective.
The underlying investments will support the EU's and Bank's priority in the energy sector (energy efficiency) and the EIB's climate action objectives,. The operation (100%) will contribute to climate change mitigation objectives.
The implementation of the EE projects financed under this operation will contribute to the EU and national targets for EE and contributes to the security of energy supply and environmental objectives. The operation will support the EU Competitiveness Compass and the EU Action Plan on Affordable Energy. The operation is fully aligned with the "EU Energy Performance of Building Directive - EU/2010/2031" as amended in 2018 and with the "Energy Efficiency Directive", as well as the "Green Deal Renovation Wave" and "REPowerEU".
The project will support ESCOs (Energy Service Companies) by purchasing the receivables of the new energy efficiency projects developed by the ESCOs and thereby providing financing to the ESCOs through project debt facilities and off-balance sheet framework agreements to help ESCOs to scale up quicker. This is a niche market where many investors/financiers are reluctant to provide financing. Thanks to the EIBG intervention, the Fund will be able to attract other investors, crowding in investors and developing the financing of EE projects.
The Fund Manager has accumulated reasonable experience and track-record in the targeted sectors and markets. The project is supported by adequate governance and capabilities of the fund manager and through external advisory.
Details of the Fund's environmental and social due diligence procedures for ensuring compliance with national legislation, the principles and standards of relevant EU legislation and EIB's Environmental and Social Standards, as well as the capacity of the Promoter to assess and monitor environmental and social risks and impacts, will be reviewed during appraisal.
The Bank will require the Promoter to take all the requisite measures to ensure that contracts for the implementation of the projects financed by the sub-fund will be tendered in accordance with the relevant applicable EU procurement legislation.