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Crisis & Climate Action at the EIB
Christopher KnowlesHead of Climate Change & Environment DivisionEIB
Brussels, 15th March 2011
2
The European Investment Bank (EIB)European priority objectives
Within the Union:– Cohesion and convergence – Small and medium-sized enterprises (SMEs) – Environmental sustainability– Knowledge Economy– Trans-European Networks (TENs) – Sustainable, competitive and secure energy
3
The European Investment Bank (EIB)European priority objectives
Outside the Union:– Private sector development– Infrastructure development– Security of energy supply– Environmental sustainability– Support for EU presence in Asia and Latin America
via Foreign Direct Investment (FDI)
4
Large Volumes of Issuance
0
20
40
60
80
100
120
EIB IBRD - WorldBank**
ADB IADB IFC** EBRD AfDB NIB
0
20
40
60
80
100
120
140
160
180
200
220
240
260
Italy Germany UK* France Spain EIB Nether-
lands
Belgium Portugal Ireland Austria Greece Finland Denmark
EU
R b
nE
UR
bn
*Gross financing requirement for FY2010-11
** Fiscal years from July to June
Source: Barclays Capital research as of 26 January 2011Data collated from a mixture of official reports and bond market analysis systems such as Dealogic
Volume of issuance compares with that of certain EU Governments …
… and is larger thanthat of other supranationals
5
EIB Signatures 1958-2010
6
Signatures and Disbursements from 2006 to 2010
EUR bn
Signatures
Disbursements
7
EIB Signatures 2010 (in EUR)
8
Climate Change > 25% of overall lending by 2012; RE > 20% of total energy
Current EIB Framework for Climate Action
EIB’s corporate objectives, targets, principles and standards :
Mainstream climate change considerations across Bank operations - building up staff awareness, capacity, and expertise.
Ensure that sector lending policies emphasise reduced GHG emissions
Mobilise & leverage private investment for developing LICs and MICs - incl. reinforcing the carbon markets and related mechanisms beyond 2012.
Accelerate development & diffusion of low-carbon technologies, including those mitigating emissions from fossil fuel technologies e.g. CCS, engines
Scale up financing and TA for urgent adaptation e.g. water;
EIB COP KPI
Aligned with the EU and international evolving climate policy
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Climate Change Action
The EIB’s climate action focuses on:– low-carbon investments that mitigate greenhouse gas
emissions – climate-resilient projects that improve adaptation to
climate change impacts.
Loans of EUR 20.5bn in 2010 for:– energy – transport – water, wastewater, solid waste – forestry– research, development and innovation (RDI)
Total loans of EUR 37.4bn since 2009
10
EIB Climate Change actionClimate change is a growing course of action for EIB in four major sectors of activity:
0
5,000
10,000
15,000
20,000
25,000
2008 2009 2010
OPSB
Other
RD & I
Energy efficiency
Renewable Energy
Sustainable transport
• Renewable Energy
• Energy Efficiency
• Sustainable transport
• RD&I
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0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
EUR m
2006 2007 2008 2009 2010
Alternative and renew - mixed sectors Bio fuel manufacturingBiomass Geothermal power stationsHydropower Solar energySolar energy manufacturing Wind energyWind energy manufacturing
EIB’s RE Lending2006-2010 – EUR 15,753m
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54%
11%
5%
24%3%
1% 2% 0,39%
Wind Energy Solar Energy
Hydroelectric pow er stations Geothermal pow er stations
Biofuel - manufacturing Biomass/Biofuel
RE - Transmission infrastructures Multi sub-sectors
Wind Energy projects accounted for 54%
of EIB’s Renewable Energy Financing in 2010
EIB’S renewable energy financing in 2010
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Global reach of EIB action in climate changeDirect investments
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Offshore wind
Belwind Project
Capacity: 165MW (55 wind turbines,
3MW/ unit)
Location: 46 km off the Belgium coast,
depth 20-37 m
Sponsors: Colruyt, Econcern, Financial
Investors
Total project cost: EUR 619.4 M
Construction contracts: Vestas & Van
Oord
Long term O&M by Vestas
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Offshore Wind PowerThe C-Power Project (Phase II)
• Sponsors: RWE Innogy, EDF Energy Nouvelles, Deme, local Belgian shareholders
• Total project cost: EUR 1.3bn
• Construction contracts: Deme & Repower
• Long term O&M by Repower
• Capacity: 295MW (48 wind turbines, 6MW / unit)
• Location: 35 km off the Belgium coast
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Offshore Wind PowerThe Baltic I Project
• Capacity: 53MW
• Location: German sector of the Baltic Sea
• Sponsors: EnBW
• Total project cost: EUR 200m
• Turbine Provider: Siemens
• O&M by Siemens
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Financing Instruments
EIB’s traditional loan products
New financial instruments for sustainable energy– Carbon Finance platforms– Equity Platforms– Debt Funds
Funds also for forestry, soil decontamination, energy efficiency, biodiversity
Technical Advisory
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INTERNATIONAL CARBON FUNDS
• Multilateral Carbon Credit Fund (MCCF)• Carbon Fund for Europe (CFE)• EIB/KfW Carbon Purchase Programme• Post 2012 Carbon Fund
RENEWABLE ENERGY FUNDS• Enercap Power Fund I• DIF Renewable Energy• Espirito Santo Infrastructure Fund• Platina European Renewable Energy Fund• SE European Energy Efficiency Fund
OTHER FUNDS• Dasos Forestry• Gingko Soil Decontamination
OTHER FUNDS UNDER PREPARATION• Bio Diversity• Waste Recycling
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Global reach of EIB action in climate changeCarbon Funds
Carbon Funds (ERPAs)
China29%
India15%
Russia11%
Other CEE11%
Other South Asia
9%
Other Central Asia
10%FEMIP
4%
Brazil 5%
OtherLATAM 6%
AFRICA1%
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• The EIB is scaling up support to accelerate the development, commercialization and diffusion of cost-effective early-stage low-carbon technologies such as:
• Photovoltaics• Off-shore wind• Concentrated solar power • 2nd generation biofuels• Carbon Capture and Storage
• Recent further emphasis to RDI activities such as; – Engine and fuel technologies which reduce emissions from
cars and airplanes – Energy-efficient smaller cars
• Lending for CC-related RDI has grown considerably and reached about € 4.7bn in 2009
Climate-friendly Lending: technology
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European Investment Bank Contacts
Climate Action Operations:Christopher Knowles, [email protected] Zöllner, [email protected]
Climate Action Policy & Safeguards:Peter Carter, [email protected] Pinna, [email protected]
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Climate Action = Growth Opportunities
"Climate change is a result of the greatest market failure the world has seen. The evidence on the seriousness of the risks from inaction or delayed action is now overwhelming. We risk damages on a scale larger than the two world wars of the last century. The problem is global and the response must be a collaboration on a global scale.”
R. Stern
2323
Green Components of National Economic Stimuli ($bn)
GermanyECUKSpainFrance
15.3
10.4
3.3
2
2.1
0 5 10 15 20
Germany
EC
UK
Spain
France
Source: Bloomberg Energy Finance. EC analysis includes: EERP, Energy Efficient Buildings and Green Cars.
24
Green Components of National Economic Stimuli ($bn)
10.4
15.3
24.7
46.9
66.6
0 10 20 30 40 50 60 70
EC
Germany
S Korea
China
US
Source: Bloomberg Energy Finance. EC analysis includes: EERP, Energy Efficient Buildings and Green Cars.
25
EIB RE & EE lending in the EU Region* 2005-2009 in €m
• EIB has invested EUR 10 bn in the deployment of EU renewable energy (close to 30% of total energy lending)
• A significant part of this investment (22%) has supported European RE manufacturing industries
• In addition, EE investments have mounted to €2.2bn in the last two years
* Includes EU 27, potential candidates and candidate countries
765
55
64
27
490
134
784
1385
316
200
996
147
863
109
2270
595
1241
140
3
221
3
130
42
3
125
3
48
5
26
EIB lending to EU* solar energy 2005-2009 in €m
• EIB lending has supported Innovative concentrated solar power (CSP) plants in Andalucia, Spain: Solucar Solar Thermal Power, Andasol and Solnova
• EIB lending has also backed regional RE programmes such as Poitou Charentes photovoltaics regional plan and solar roofs in Germany
* Includes EU 27, potential candidates and candidate countries
8582
300
1285
27
• Active in offshore wind since 2002• Funding volume: ~3,415 Meur• Supported capacity: 2,710 MW• Belwind (BE): first signed EIB PF project• Offshore wind involves larger project size
than onshore windfarms• Offshore wind is still an emerging
technology• High demand for EIB financing• Significant support to EU manufacturers
* Includes EU 27, potential candidates and candidate countries
EIB lending to wind energy in the EU Region*
300
64
490
127
200
2
34 65
4811030
30
849
2005-2009 in €m
