ENERGY EFFICIENT RENOVATIONS

Energy efficiency improving investment program of residential buildings in Finland.

The project consists of the renovation of existing residential buildings owned by the Promoter in metropolitan areas in Finland, improving their energy efficiency performance and thus reducing energy consumption and CO2 emissions.

The proposed operation aims to finance energy efficiency ("EE") in Finland in residential buildings. The project will support the EU's and Bank's priority in the energy sector, the EIB's climate action objectives and the European Green Deal and particularly in the Renovation Wave.

EE investments in buildings suffer from a chronic lack of investments. Through energy savings, energy efficiency projects reduce carbon emissions and air pollution, increase comfort and air quality in the buildings, social and public benefits that are not fully internalised by private investors.

In addition, given the labour-intensive nature of the building sector, largely dominated by local businesses, renovation of buildings also plays a crucial role in job creation and the economic recovery after the COVID-19 pandemic. The project has a very good Economic Rate of Return and will generate good social benefit.

The EIB support to this operation is expected to accelerate the implementation of the underlying EE schemes, by lowering the associated cost of funding and offering a maturity beyond the tenor usually offered by commercial banks.

A part of the project is located in transition regions (Tampere and Turku) and the project will stimulate the local construction industry.

The project relates to investments related to energy efficiency, and can also include some building integrated renewable energy sources, and will be implemented in existing residential buildings without changing the already authorised scope and would therefore not require an EIA under the EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU. The Bank's services will nevertheless review during the project appraisal whether any of the investments could fall under Annex II of EIA Directive, as well as any other environmental aspects. The renovation works to be carried out in built-up urban areas are deemed to have minor negative environmental and social impacts during the renovation process and these impacts are expected to be mitigated by proper works management. If applicable, works related to asbestos removal must be performed in accordance to the existing regulations for asbestos removal and disposal.

The Promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions .