LYON URBAN REGENERATION

The framework loan will support the multi-sector investment programme of the City of Lyon. as well as the implementation of its urban development and climate city strategies. The project includes, among others, investments in urban renewal and regeneration, green areas and open spaces, sustainable mobility and construction and rehabilitation of public buildings.

Lyon aims to become climate neutral and a resilient city to climate change by 2030. This is in line with the urgency outlined in the Paris Agreement and establishes the City of Lyon as an international leader among municipalities on climate action, demonstrating its commitment to achieve climate neutrality by 2030. The project addresses a number of market failures and will bring important economic and social benefits, contributing to achieving a more integrated, sustainable, mixed and inclusive development, improving the living conditions of the citizens and other people visiting or living in the city. The Project will contribute to promote progress toward multiple Sustainable Development Goals, the most significant one being the contribution to sustainable cities and communities. The project is thus fully consistent with the European Green Deal target of ensuring no net emissions of greenhouse gases by 2050. It is also aligned to the existing European Commission proposals set to reduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.

This Project comprises an urban Framework Loan (FL) supporting the investment programme of the Municipality of Lyon (Plan de Mandat 2020-2026 and subsequent) and supporting the implementation of the urban development strategies, including the City Climate Plan. Furthermore, this is a sub-operation under the 2024-0437 - EU CNC MISSION CITIES LENDING ENVELOPE (approved by the Board of Directors in September 2024), aiming at co-financing the Action Plans and Investment Plans of EU Cities labelled under the EU Mission for 100 Climate-Neutral and Smart Cities by 2030.

In this regard Lyon is aiming at becoming climate neutral and a resilient city to climate change by 2030. This is in line with the urgency outlined in the Paris Agreement and establish the City as an international leader on climate action, demonstrating its commitment to achieving its climate neutrality by 2030. 

The Project is thus fully consistent with the European Green Deal target of ensuring no net emissions of greenhouse gases by 2050. It is also aligned to the existing European Commission proposals set to reduce net greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.

The Project is consistent with the EU Framework for Urban Development and Regeneration. It is also aligned with the EU Energy Performance of Building Directive, the Energy Efficiency Directive as well as other EU Directives applicable to relevant sectors covered under this Project. Furthermore, the Project is consistent with the EIB strategies and guidelines related to eligible sectors, including the Bank's Urban Lending Review, the Energy Lending Policy and the Transport Lending Policy.

The Project is aligned to the Climate Bank Roadmap. In this regard, the Project's contribution to the Bank's climate action and environmental sustainability objectives is estimated at approx. 83.5% of the total cost.

Given the above, the Project contributes to two of the EIBG core strategic priorities: Social Infrastructure and Climate Action and Environmental Sustainability.

The Project addresses a number of market failures and will bring important economic and social benefits, contributing to achieving a more integrated, sustainable, mixed and inclusive development, improving the living conditions of the citizens and other people visiting or living in the city. The Project will contribute to promoting progress toward multiple Sustainable Development Goals, the most significant one being the contribution to sustainable cities and communities.

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 schemes under the Framework Loan should have an overall positive impact on the environment by promoting sustainable urban development and reducing energy consumption. The project is expected to contribute to climate action and environmental sustainability (CA&ES) objectives, in particular climate mitigation. The promoter's environmental management capacity to properly apply the relevant EU Directives will be verified during appraisal, in particular EU EIA Directive 2011/92/EU as amended by Directive 2014/52/EU, EU SEA Directive 2001/42/EC, EU Habitats Directive 92/43/EEC and EU Birds Directive 2009/147/EC, EU Energy Performance of Buildings Directive EU/2024/1275 and the Water Framework Directive 2000/60/EC. The status of environmental studies and public consultations related to the construction and refurbishment investments will also be further assessed during project 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, Directives 2014/24/EU and 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EE as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.