TECHEU THEMATIC GREEN TRANSITION (VD DEBT) LEIII

The project consists of a Lending Envelope (LE) for Thematic Finance (Debt Type Operations and Equity Type Operations) under InvestEU with eligibility under the sub-set of the Main Policy Priority Areas (MPPAs) for Sustainable Infrastructure Window (SIW) General Debt or Research, innovation and digitisation (RIDW) as defined in Article 5 of Schedule A.2.1 Green Transition, including: 1. Sustainable Investments; 2. Future technologies; and 3. Areas of strategic importance. The LE also includes sub-operations relating to (i) the Green Premium Top-Up Agreement and (ii) the European Battery Manufacturing Top-Up Agreement, to InvestEU.

The aim is to provide venture debt and debt finance to eligible counterparts in all InvestEU eligible countries.

The operation concerns investments that will support the Green Transition of the EU, as defined in InvestEU, more specifically in the fields of: a) Research, development and innovation, b) The development of the energy sector in accordance with the Energy Union priorities, c) The development of sustainable and safe transport infrastructures and mobility solutions, equipment, and innovative technologies, d) Environment and resources, e) The development of digital connectivity infrastructure, f) The development, deployment, and scaling-up of digital technologies and services, g) The rehabilitation of industrial sites and the restoration of such sites for sustainable use, h) Sustainable agriculture, forestry, fishery, aquaculture, and other elements of the wider sustainable bioeconomy, i) The development of the defence industry, j) Space, in particular in relation to the development of the space sector in line with the objectives of the Space Strategy for Europe, k) Seas and oceans, through the development of projects and enterprises in the area of the blue economy and the Sustainable Blue Economy Finance Principles.

It will lead to positive environmental externalities through the market deployment of the concerned technologies, and will contribute to further knowledge creation, accumulation, and diffusion (through patenting and R&D collaborations with universities and industrial partners), and workforce reskilling to operate in the evolving technologies and market context.

All investments in the lending envelope are expected to contribute to the EIB Climate Action and Environmental Sustainability policy objective (90% of total project cost estimated). Depending on the details of the specific sub-project, the investments will contribute to at least one of the following Bank's policy objectives: "Innovation, Digital and Human Capital", ''SME & Midcap Finance", ''Sustainable Energy & Natural Resources" and "Sustainable Cities and Regions".

The EIB financing will support investments addressing the market failures and gaps associated with imperfect competition and incomplete markets for very innovative and still market-entry stage technologies. It will also support investments associated with positive environmental, social and knowledge externalities generation.

The typical types of sub-projects under the Framework Operation are expected to have a high level of residual technological risk and have an inherent high market risk, given their first-of-a-kind/demonstration and/or early-stage commercial roll-out. These risks, often combined with the high level of CAPEX, translate into a notable financing gap in Europe where the depth of the Venture Capital market and appetite for large tickets are not sufficient to meet the needs of breakthrough technology financing. The structuring of the EIB financing via quasi-equity, mezzanine, and larger senior debt position is expected to have a catalytic effect on other fund providers.

The sub-projects will not be able to be carried out to the same extent by the EIB without InvestEU support.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.