Summary sheet
The project consists of an intermediated lending facility in support of small to mid-sized renewable energy projects in France (onshore wind, photovoltaic, geothermal, hydro, biomass and waste treatment/biogas).
This project supports national and European targets related to renewable energy (RE) generation and it will hence contribute to EU energy objectives, notably security of energy supply and tackling climate change.
Despite a strong increase in recent years, installed electricity generation capacity from renewable sources in France remains below national targets, leading to a sub-optimal investment situation in this crucial sector in the fight against climate change. The projects will produce electricity from low carbon sources (primarily solar PV, especially rooftop solar PV and onshore wind) and address negative climate and environmental externalities, a market failure, through the reduction of carbon emissions and other air pollution. Therefore, the financing contributes to France's 2030 decarbonisation goals.
The Project will contribute to the timely deployment in the next years of RE production capacity in France, which will be key to meet the mid/long term national and EU energy objectives. The Project will also support the EIB's priority lending objectives concerning RE and will contribute fully towards the Bank's CA objectives. EIB's intervention will take the form of a funding line to BPCE, a well-known intermediary of EIB's support to the RE sector in France. BPCE will on-lend the EIB funds at attractive financing conditions to eligible projects, thereby facilitating their implementation.
The main Climate action element of the operation, renewable energy and energy efficiency projects, reduces negative carbon and air pollution externalities and increases comfort and air quality in the dwellings, social and public benefits that are not fully internalised by private investors.
Overall, the projects are expected to yield good quality and results, thanks to avoided carbon emissions and employment creation. Moreover, the projects will be supported by adequate governance and capabilities of the FI. The operation is also eligible under Article 309 (a) projects for developing less-developed regions (over 50%).
This operation is intended to generate environmental benefits by supporting projects that help mitigate climate change. The Bank will assess the capacity and procedures of the financial intermediary to ensure compliance with the national and European environmental and biodiversity regulations as well as their capacity to support the Bank's public disclosure policy, which aims to facilitate access by the public to environmentally relevant information.
Final beneficiaries will be requested to comply with applicable national and EU Procurement Directives, as appropriate.