Fiche récapitulative
Purchase by the EIB of Green Bond instruments issued by Eesti Energia under its Green Finance Framework, the proceeds of which will finance new investments in projects promoting the climate neutrality and resilience of Estonia's energy supply - Electricity distribution networks, Renewable energy generation and storage.
The aim is to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular to climate mitigation, and pollution prevention and control. The operation is in line with Article 309 point (a) projects for developing less developed regions and point (c) common interest of the Treaty on the functioning of the European Union.
The operation is expected to facilitate EESTI Energia's access to the debt capital market by anchoring its future green bond issuances, by diversifying its investor base and providing signalling to other investors. It will thereby support an objective of the Savings and Investment Union.
The green bonds will in part finance electricity distribution network investments primarily in Estonia. Renewable energy generation (Onshore wind, battery energy storage systems, some Solar PV) will also form part of the green bond financing, thereby contributing to Estonia and the Baltics' Long-Term Climate 2050 Strategy set out in the National Energy and Climate Plan (NECP), as well as EU policies on energy and climate, including the REPowerEU action plan, by enhancing critical infrastructure for decarbonisation.
The project helps fill the growing investment gap in European electricity grid infrastructure, which is needed to support the European Energy Transition, as identified, among others, in the EU Clean Industrial Deal, the EU Affordable Energy Action Plan, and the EU Grid Action Plan.
The project addresses negative climate and environmental externalities and contributes to the provision of public goods such as security of supply. This financing contributes to the Bank's lending priority objectives on energy and is deemed to have very high contribution to Climate Action (climate change mitigation).
The project's overall economic viability is expected to be good and the broader social benefit is expected to be rated as very good. The promoter is an experienced operator of electricity distribution infrastructure and generation assets in Estonia and the Baltics and has the necessary capacity to manage the implementation and operation of the underlying project schemes.
Some schemes covered by the operation may be subject to an Environmental Impact Assessment (EIA). These schemes will fall under Annex I or II of the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, requiring either an EIA including public consultation, or screening by the national competent authority on the basis of Annex III of the same Directive, to determine the need for an EIA. The promoter will need to comply with sustainability-related disclosure requirements under national and EU legislation, which is applicable to its activities, e.g. publication of EIAs. If EIAs of the underlying schemes are not published by the competent authorities, the promoter will need to ensure the EIAs are made public, to ensure compliance with the Bank's Transparency Policy. In any case, the promoter will need to keep the EIAs on file and ensure that the environmental permit requirements are adequately implemented. Environmental and social due diligence will focus on the capacity of the promoter to identify, assess, manage and monitor environmental, climate and social effects, and to ensure that underlying schemes comply with national and EU legislation, as applicable, and with EIB Environmental and Social Standards (ESS) and relevant guidelines. The due diligence will be based on public and non-public information.
The Bank 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 2014/25/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.