CAIXABANK RISK SHARING EUROPE CLIMATE ACTION II

Promoter – Financial Intermediary

CAIXABANK SA

Location

• Italy
• Spain

Description

The operation consists of a funded delinked risk sharing with Caixabank in respect of an existing portfolio of project finance loans in the renewable energy and infrastructure sectors. Through EIB resources, new loans will be granted to eligible renewable energy and storage transactions in Italy, Spain and across Europe.

Additionality and Impact

This operation increases renewable energy generation capacity as well as flexibility of the power system in the EU, contributing to the EU 2030 climate objectives, also in the context of the RePowerEU Action Plan. The operation will finance multiple renewable energy and energy storage projects, each of them producing electricity from low carbon sources, facilitating the integration of increasing share of renewables and providing flexibility to the electricity system.

The operation will address the market failure of negative climate and environmental externalities by reducing carbon emissions and other air pollution compared to fossil-fuel generation. The project is expected to generate a positive economic rate of return and broader social benefit by producing renewable electricity at a cost below the cost of fossil-fuel based alternatives.

CaixaBank is an experienced and well-known EIB counterpart with a good track record of similar projects with the Bank. The FI has shown a good track record in the renewable energy sector, a good governance system and strong project management capabilities to appraise and monitor the sub-projects. The Bank will provide a meaningful part of the total financing needs of the projects, which are expected to mainly rely on revenues from the market. This operation improves market efficiency and competition in a sector characterized by incomplete markets.

EIB funding contribution to projects through CaixaBank, in structures with customized debt terms, favourable financing conditions and long-term tenors, is critical for projects with a high Climate Action component, which typically require longer investment periods. EIB will support CaixaBank's participation in these higher risk structures to achieve the desired impact.

Objectives

The aim is to provide new loans to support eligible renewable energy transactions in Spain and across Europe. The operation contributes to the EU-wide target of 32% of energy from renewable sources in gross final energy consumption (RES) by 2030 as set out in the EU RE Directive (Directive (EU) 2018/2001). Additionally, it contributes to the national renewable energy targets, including Spain's Integrated National Energy and Climate Plan (NECP), which aims for 42% renewable energy in the final energy consumption (RES) by 2030. It is envisaged for a number of projects to be located in EIB Cohesion Priority Regions. The project is therefore eligible under Article 309 (a) projects for developing less-developed regions and (c) common interest. The financing of this project would contribute to the EIB's lending priority policy on social cohesion, renewable energy and climate action.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 150 million

Total cost (Approximate amount)

EUR 300 million

Environmental aspects

The EIB will verify that the projects and associated transmission lines fall within Annex II of the Environmental Impact Assessment (EIA) Directive (Directive 2011/92/EU amended by the EIA Directive 2014/52/EU 2011/92/EU). All the projects shall be screened in by the competent authority and be subject to an environmental impact assessment (EIA) process, in order to obtain the required environmental permits. All the projects and associated infrastructure shall be located outside Natura 2000 sites or other protected areas. The authorisation procedure and compliance with the relevant EU directives, specifically Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively), will be further assessed at appraisal, in particular the potential cumulative impacts assessment and the impacts on protected flora and fauna, including Natura 2000 sites.

Procurement

The expected final beneficiaries have been assessed by the EIB as being private companies not being subject to EU rules on public procurement or concessions. However, the Bank will require CaixaBank to take all the requisite measures to ensure that the procurement procedures carried out by the final beneficiaries for the sub-projects comply with the relevant EU legislation and the applicable national legislation.

Status

Signed - 26/11/2024