The
climate
finance
pioneer
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The European Investment Bank (EIB) is one of the largest providers
of climate-related investment globally.
The EIB’s
unique expertise and financial strength gets climate projects off the
ground. However, the EIB cannot meet the challenge on its own.
Cooperation with
our partners is crucial.
We focus where the
impact of our investments is greatest.
Innovative finance is key.
Jonathan Taylor,
EIB Vice-President for Environment
and Climate Action
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Investing in climate innovation
of finance wordwide
in 2015
over
bn
EUR
20
largest MDB for climate action
finance worldwide
largest MDB issuer of green bonds:
nearly EUR 13bn since 2007
USD 100bn for climate action expected
over the next five years
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As partner to leading climate actors
worldwide, including the Green
Climate Fund, the EIB brings its
resources to mobilise finance in
developing countries.
global target: more than 25% of all lending
is for climate action - nearly 27% in 2015
increased
target of 35%
of lending
in developing
countries
by 2020
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Financial innovation may look
complicated, but here is the bottom line.
In everything we do, people and climate
come first.
Stepping up our climate action finance in developing countries is not just about lending
more money for big projects. We find innovative ways to finance more community-based
projects that generate lasting results for local people to adapt to climate change.
Small scale, big impact
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Runa Foundation worked with us to
incorporate guayusa into our farms to increase
income and create sustainable livelihoods.
Growing guayusa to sell to Runa helped diver-
sify our farms, making us more resilient in the
face of climate change. In addition to the
cocoa that we grow, I planted 300 guayusa
trees on a half-hectare farm, and I expect
my harvest of guayusa to increase.
Ruth Grefa, Farmer in San José, Napo Province, Ecuador.
Runa Foundation is the first company to sell tea beverages made
from the leaves of a native Amazonian tree, guayusa.
We support it through our investment in EcoEnterprises II, a
pioneering impact fund with a women-owned management team.
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Equity funds
An EIB equity-investment provides a “quality stamp” to:
encourage and attract new investors
enable investment into new asset classes
(soil decontamination, biodiversity, land use)
mobilise additional public and private capital
Multiply our impact on the ground
We maximise the positive change to people’s lives and the environment.
This requires leadership and innovation.
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invested to-date by the EIB
in 26 climate-related funds
total capital raised
by these funds
total investment in climate
action projects
EUR
0.8bn
6
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EUR
5bn
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A pioneering private equity fund draws insti-
tutional investors into areas where they might
have hesitated to invest.
Copenhagen
Infrastructure II Fund
Our contribution:
EUR 75m equity investment.
Fund size:
EUR 2bn, mostly from Scandinavian
pension funds.
We invested in a fund
structure cove-
ring large offshore
renewable energy
infrastructure with a
long term investment
horizon.
© Copenhagen Infrastructure Partners
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first equity transaction
under the European Fund
for Strategic Investments
(EFSI)
invests in large greenfield
renewables projects in
Northern and Western
Europe
investments with relatively
lower leverage
enables institutional
investors to engage at
an earlier stage
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A unique new fund mobilises private capital from investors for clean energy projects in
developing countries.
Global Energy Efficiency and Renewable
Energy Fund
– GEEREF
Fund-of-funds advised by the EIB.
Total size: EUR 222m.
innovative partnership bringing together public and private investors
anchors private equity funds, which in turn invest in private sector energy projects
in Africa, Asia, Latin America and the Caribbean
backs first-time funds, early in their development
takes early-stage development risk
helps set up teams and develop investment strategies
13
We’re building
Ethiopia’s first
independent power
project in the extinct
Corbetti volcano.
Once operational it will
produce enough
electricity to supply five
million Ethiopian homes.
Without the EIB it would
have been very, very
hard to get it off the
ground.
Alastair Vere Nicoll,
Founder of Berkeley Energy.
GEEREF has
invested in
10 funds
so far. For
every euro
invested by
GEEREF, over
EUR 50 is
invested in
final projects
on the
ground.
The Corbetti
Geothermal Power
Project is developed
by the EIB and
GEEREF-backed
African Renewable
Energy Fund.
14
When banks and markets can’t help, the EIB figures out a way to do it.
Green for Growth Fund – GGF
Layered-debt fund initiated by the EIB and KfW, supported
by the European Commission and Germany.
Our contribution:
EUR 50m.
Total fund size: EUR 380m of which 15% raised from the private sector
innovative public-private partnership with lean structure, high specialisation
fosters energy and efficiency investments in South-East Europe,
the Eastern Neighbourhood and Turkey
provides financing to businesses and households, mostly through financial
institutions previously inactive in these sectors
Armenian chocolate producer Arcolad
bought new energy-efficient machinery
for chocolate production thanks to a GGF loan.
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attracts private capital to a challenging segment, green energy, and region
quickly deploys capital to generate energy savings and CO
2
reduction
Technical Assistance Facility building capacity within financial institutions
Armenian chocolate producer Arcolad
bought new energy-efficient machinery
for chocolate production thanks to a GGF loan.
© Peter Grosslaub
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We create financial instruments that take on the risk of green investments
so commercial banks will join in.
Private Finance for Energy Efficiency – PF4EE
Managed by the EIB and funded by the EC Programme for the Environment
and Climate Action.
gets risky projects off the ground
promotes energy efficiency lending from commercial banks
combines protection against losses, an EIB loan and technical assistance
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PF4EE is active
since 2015 with
operations in Czech
Republic, Spain and
France. It is expected
to unlock EUR 1bn of
private investment
in energy efficiency
in the EU by 2020.
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We cut the risk for project developers so they can build a pipeline of small scale
renewable energy investments.
Renewable Energy Performance Platform – REPP
Managed by the EIB with the support of Camco Clean Energy and Greenstream.
improves the bankability of projects by providing access to risk-mitigation tools
supports the development of small-scale renewable energy projects in sub-Saharan
Africa
reimbursable grants for development costs
financial structuring assistance
results-based ‘top-up’ finance to enhance equity returns
19
© 2016 Camco
Management Limited
REPP advisors at work
to support project
developers in getting
access to long term
lending and risk
mitigation
instruments.
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We invented Green Bonds, called Climate Awareness Bonds (CABs),
to stimulate green investment from institutional investors.
Climate Awareness Bonds
EUR 4bn raised in 2015
EUR CAB due November 2019 is the largest Green Bond outstanding in any currency
build a Green reference yield curve in EUR
offer the opportunity for socially responsible investments
promote transparency and accountability in its Green Bond reporting
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The Tafila wind farm has brought valuable jobs and business to the area, and paved the
way for improvement of the region.
Um Ibrahim, Local resident, Tafila, Jordan.
In 2007 the EIB
pioneered the green
bonds market by
issuing the first
“Climate Awareness
Bond”. CABs have
supported more
than 100 energy
projects in over 40
countries.
The Tafila wind farm in
the Jordanian desert
received allocations
from CABs.
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We pioneer financial structures like the mini-bonds of Italian water utilities pooled for an
asset-backed securitisation.
Viveracqua hydrobond
Our EUR 145m investment bought a portfolio of mini-bonds of regulated water sector
utilities in Italy.
first securitisation of mini-bonds
first systemic operation among integrated water system companies in Europe
reaches smaller and financially weaker water utilities
big scaling-up and replication potential reduces the cost of capital for weaker
borrowers
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The EIB gave
a much needed
boost for water
investments in
Italy. Thanks to the
EIB’s involvement,
this operation
has been visible
to other investors
who may show
their interest in
the operation,
now and in the
future.
Fabio Trolese, President of the Viveracqua Consortium.
3.5 million inhabitants in the region of Veneto
in Italy will benefit from greater water security.
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InnovFin – EU Finance for Innovators
a
debt-based instrument, including guarantees, direct loans and advisory services
supports the smallest to the largest research and innovation projects in the EU and
countries associated with Horizon 2020
InnovFin Energy Demo Projects finances innovative first-of-a-kind projects in
renewable energy and hydrogen/fuel cells
We empower innovators to invest in cutting-edge climate technology.
InnovFin products are expected to unlock more than EUR 24bn of financing for research
and innovation by 2020. This finance is expected to support up to EUR 50bn of final investments.
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By supporting proven innovative concepts that address key chal-
lenges in offshore wind, the EIB is encouraging private investment
in the right technologies for commercial deployment.
Carlos Martin Rivals,
Managing Director of
WindFloat Atlantic
© Ecotierra
The EIB-backed
floating wind
farm WindFloat is
expected to light
up more than
20 000 Portuguese
households.
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We promote pioneering approaches to sustainable land-use for the protection of
biodiversity.
The award-winning
Althelia Climate Fund
Our contribution:
EUR 15m for a fund size of EUR 110m.
projects to mitigate carbon emissions by reducing
deforestation in Africa, Latin America and Asia
combines revenue from carbon credits and
production of sustainable certified
commodities in a payment-for-performance approach
Over 42m tonnes
of CO
2
avoided by
2021 – equivalent to
nearly three times
the emissions from all
flights departing from
London’s Heathrow
Airport in a year.
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I am happy to be part of the
Tambopata Bahuaja REDD+ project
because it provides us with techni-
cal assistance throughout the whole
production process, from preparing
the soil and planting the seeds, to
applying organic fertilisers. Thanks to
improved agricultural practices, our
sustainable cocoa will have direct
access to international markets.
Laura Silva Camargo, Farmer, Tambopata
Candamo Farmers cooperative, Peru.
© Ecotierra
Winner of 2015 Environmental Finance Award
for Sustainable Forestry Deal of the Year.
Althelia’s sustainable cocoa project in Peru won
the UN’s 2015 Momentum for Change Award.
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We support new business models
generating revenues to support private
capital, instead of grants.
Natural Capital Financing
Facility
– NCFF
Our contribution:
EUR 125m, with the support of the European
Commission.
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promotes the conservation of natural
capital to meet the EU nature,
biodiversity and climate adaptation
objectives
tests different financing options to
finance natural capital
covers green infrastructure, payment
for ecosystem services, biodiversity
offsets, pro-biodiversity and
pro-adaptation businesses such as
sustainable agriculture, forestry,
aquaculture and eco-tourism
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We sponsor funds that use resource-efficient techniques to decontaminate industrial sites.
Brownfields Regeneration, Gingko I & II
Backed by EIB and Caisse des Dépôts.
EIB total commitment:
nearly EUR 70m for funds targeting EUR 320m at their final closing.
strong and unique expertise in a niche market already active in France, Belgium, UK,
Luxembourg and Spain
state-of-the-art techniques for remediation, promoting the circular economy
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Ginkgo II: EFSI
guarantee helps the
Fund reach its target
size more quickly.
Gingko I: demolition and remediation
work turning the brownfield site
of Mont-Saint-Guibert, Belgium,
into a healthy greenspace and residential
area for walking, recreation, and other physical
activities.
© Ginkgo Advisor
Before
After
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© EIB 04/2016
print: QH-02-16-267-EN-C ISBN 978-92-861-2712-0 doi:10.2867/27936
digital: QH-02-16-267-EN-N ISBN 978-92-861-2711-3 doi:10.2867/029870
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