Release date: 6 July 2020
Promoter – Financial Intermediary
PRIVATE ENTITY(IES)Location
Description
Subordinated financings (contractually, structurally or legally) of EU-based private entities targeting small and medium energy efficiency (industrial, commercial, public, waste heat recovery, lighting) and renewable energy (biomass, geothermal, thermal solar, cogeneration, wind, PV solar, energy storage) projects.
Additionality and Impact
The EIB
contribution will directly support small and medium size RE and EE promoters to
accelerate the implementation of investments in renewable energy and energy
efficiency projects in Europe, including in EIB Cohesion Priority
Regions.The proposed Programme Loan aims to address the imbalance faced
by small and medium green
mobility, RE and EE
project promoters to access on-balance sheet lending by bridging the equity gap
of these entities.
The operation has a very good ESG impact as it
contributes to the development of the energy efficiency, renewable energy and
heat sector in accordance with the Energy Union priorities, including the 2030
and 2050 climate and energy frameworks and by doing so and reduces carbon
emissions and air pollution negative externalities.
It delivers
positive outcomes in job creation, social and
health benefits to local communities and an improvement of the purchasing power
of EU households.
Finally, it expands financial support to new EIB
clients and new
markets by offering a new financing structure complementing the Bank's
usual financing channels (project finance, bank intermediated lending). The proposed EIB financing would
address the underlying market failure and send a positive signal to the market regarding the
commitment of the borrower to the energy transition which is even more important in the current market turmoil
generated by the COVID-19 pandemic. The underlying projects to be financed via this structure
will benefit from customized terms which demonstrate the EIB's
tailored approach to the client.
Objectives
The development of renewable energy and energy efficiency investments supports national and European objectives related to improving energy efficiency and thus supporting climate change and security of supply objectives in the EU. The project is therefore eligible under Article 309 point (a) projects for developing less-developed regions and point (c) common interest. Overall, this operation should lead to increased investment volumes from developer to renewable energy and energy efficiency schemes and, consequently, higher lending volumes from the Bank to this priority sector with clear impact on employment and growth.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 500 million
Total cost (Approximate amount)
EUR 1000 million
Environmental aspects
This operation intends to bring environmental benefits by supporting projects that reduce energy consumption and help to mitigate climate change. The individual schemes to be financed within the sub-operations under this Programme Loan are small and are expected to have limited negative environmental impacts. Given the scale, location and nature of the sub-projects an environmental impact assessment (EIA), as defined under the EIA Directive 2011/92/EU, would normally be not required. The Bank will assess the capacity and procedures of the financial intermediaries to ensure compliance with national and European environmental and biodiversity regulations of the individual sub-projects as well as its capacity to support the Bank's Public Disclosure Policy, which aims at facilitating access by the public to environmentally relevant information.
Procurement
The Bank will assess, for each underlying Framework Loan, whether the Promoter is a private company not subject to EU rules on public procurement or concessions. If after this assessment, the EIB were to conclude that the promoter is subject to EU public procurement legislation, then the Bank would require the promoter to ensure that contracts for the implementation of the underlying schemes will be tendered in accordance with the relevant applicable EU procurement legislation as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.
Status
Approved - 11/03/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).