European Investment Bank (EIB)

1.    Multilaterals Sources of Funding

•    Requirement of competitive bidding processes for the granting of exploration and/or operating licenses by the government.
•    In-depth (some would say cumbersome) due diligence.
•    High transparency and accountability standards.
•    Monitoring and reporting obligations.

The EIB is the world’s largest public international financial institution. The EIB supports the political and strategic objectives of the European Union by granting long-term loans for economically sound investment projects. In 2008, the EIB raised nearly € 60 billion. As of 31 December 2008, the EIB’s outstanding debt amounted to € 253 billion. The EIB is instrumental in implementing the EU’s development and economic cooperation policy in countries outside the Union. In 2008, the Bank provided finance totalling € 8.6 billion to support projects meeting its energy objectives within the European Union. Outside the EU, the energy sector accounted for € 1.6 billion. Renewable energy projects, including manufacturing, totalled €2.2 billion. In 2008, individual loans for capital projects relating to the environment amounted to €15.7 billion within the EU and €2.3 billion outside the European Union, together accounting for 31% of total financing. These loans centred on sustainable communities (€9.3 billion) for urban renewal and sustainable transport projects as well as environmental protection (€8.7 billion) for combating climate change, protecting natural resources and improving the environment and health.

Renewable Energies and Energy Efficiency
Renewable energy and energy-efficiency projects are at the heart of the EIB’s energy investment efforts and contribute to making Europe’s energy supplies more sustainable, competitive and secure. Their development and expansion are widely recognised as the best way to help the European Union achieve its energy and climate action objectives by 2020. These are:
•    to reduce greenhouse gas emissions by 20% compared to 1990 levels;
•    to raise the share of renewable energy in final energy consumption by 20%, and;
•    to increase energy efficiency by 20% in comparison with projections.


EIB lending to renewable energy
EIB lending for renewable energy has grown dramatically over the last few years to reach EUR 4.6bn in 2009. The share of renewable lending in the overall EIB energy portfolio tripled from below 10% in 2006 to nearly 30% in 2009. The majority of this lending is directed to wind and solar power generation. The Bank has become a key source of finance to the market in these sectors.

Increased support to energy efficiency
The EIB has also considerably boosted its lending for energy efficiency, which doubled in 2009 to EUR 1.5bn and is expected to continue increasing in the future. EIB financing for energy-efficiency projects covers both the supply side (e.g. combined heat and power – CHP, district heating) and the demand side (mainly public and private buildings). Energy efficiency considerations are mainstreamed into all the projects appraised by the Bank.
As part of its renewed emphasis on energy efficiency, the Bank gives priority to the financing of two broad categories of projects:
•    Those which result in improvements in energy efficiency equal to at least a 20% reduction in energy consumption compared to the situation without the project;
•    Those which, while improving energy efficiency by less than 20%, generate energy savings that account for at least 50% of the total investment cost.


EIB renewable energy and energy efficiency financing
Beyond sheer lending volumes, the EIB has developed other financing means, such as equity and carbon funds, to further support renewable energy and energy-efficiency projects. The Bank also works upstream with project promoters providing technical assistance to develop projects. The EIB is involved in a significant pipeline of clean energy projects both inside and outside the European Union. It is also managing and participating in several other initiatives or programmes related to energy and climate change, such as the Mediterranean Solar Plan (MSP) and the GEEREF (Global Energy Efficiency and Renewable Energy) fund of funds.

Furthermore, a number of recent joint EC/EIB initiatives provide further support for energy efficiency:
•    ELENA

For further information on the EIB activities in the renewable energy and energy efficiency areas, please consult The European Investment Bank: Promoting Renewable Energy and Energy Efficiency.

Enquiries regarding the financing facilities, activity, organization and objectives of the EIB
Information Desk, Communication Department
(+352) 43 79 – 22000
(+352) 43 79 – 62000

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