Transcript Tilman Seibert præsentation

Financing Green Growth –
Part of the Solution for
the Economic Crisis?
Tilman Seibert
Copenhagen, 30 April 2009
THE EUROPEAN INVESTMENT BANK
• The European Union’s financing institution ...
• Created by the Treaty of Rome in 1958, to provide long-term finance for
projects implementing the EU’s policies
• Subscribed capital: EUR 232.4bn as of 1.4.2009
• EIB shareholders: 27 Member States of the European Union
• 2008: Lending EUR 57.6bn
Borrowing from the Capital Markets EUR 59.5 bn
• Priority Lending Activities
Environment + Energy
R&D Knowledge Economy
Trans-European Networks for Transport and Energy (TEN)
Small and Medium-sized Enterprises (SMEs)
Economic and Social Convergence of Member States
EIB and the Policy Context
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EIB CONTRIBUTION TO THE EUROPEAN
ECONOMY RECOVERY PROGRAMME
EIB to maintain rigorous focus on priority lending areas and funding of viable
investments in a sustainable environment
Additional financing of investment of EUR 15 bn p.a above pre-crisis trend
scenario
 2009 : EUR 66.4 bn
 2010 : EUR 67.7 bn
Additional lending of EUR 15 bn p.a. in 2009 and 2010 to focus on :
 energy, carbon capture, infrastructure, clean transport : EUR 6.0 bn
 small and medium sized companies : 3.5 bn
 convergence areas : EUR 2.5 bn
 “flexibility reserve” : EUR 3.0 bn
EIB and the Policy Context
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ENVIRONMENTAL SUSTAINABILITY
•
Climate change initiatives, sustainable development and social welfare
•
Minimising the adverse environmental impact in all projects
•
Direct loans of EUR 15.7 bn in 2008 for
–
–
–
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–
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mitigating climate change
promoting waste management and sustainable use of natural resources
improving the urban environment
reducing pollution
protecting biodiversity
Total lending for these investments of EUR 68 bn since 2004
EIB and the Policy Context
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GREEN GROWTH THROUGH
COMPREHENSIVE APPROACH
•
EIB has a broad definition of environmental projects:
– tackling climate change, including energy efficiency and
renewable energy
– protecting and enhancing biodiversity
– safeguarding the environment and health (e.g. reduction of
industrial pollution, provision of water and wastewater
treatment)
– promoting the sustainable use of natural resources and waste
management, including minimisation, recycling, re-use and
disposal of domestic, commercial and industrial waste
– improving the quality of life in the urban environment,
particularly through urban renewal and regeneration
– sustainable urban transport projects, and health and healthcare
projects.
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ENERGY AND ENVIRONMENT:
EU POLICY CONTEXT
Environmental sustainability
•
Energy accounts for 80% of greenhouse gas emissions in the EU
(European Environment Agency)
•
EU Commitment: 20% reduction of GHG emissions by 2020
compared to 1990
•
EU target: Renewable Energy to account for 20% of EU energy mix
by 2020 (up from less than 7% in 2005)
Security of supply
•
Diversification of energy sources
- Securing geographical diversification
Lisbon Agenda
•
Employment and competitiveness in the low carbon economy
EIB and the Policy Context
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ENERGY INVESTMENT TRENDS IN THE EU
•
EU energy objectives will lead to a substantial expansion of energy
investments, notably in Renewable Energy and Energy Efficiency
•
Policy uncertainties can impede the realisation of these investments
•
Renewable Energy investments expected at around EUR 600-800 bn up
to 2020
•
Potential investments in Energy Efficiency probably larger than for
Renewable Energy
•
Large investment needs to replace/modernise existing power stations
and grids
EIB energy lending target for 2008 : EUR 6.5 bn
•
EIB effective energy lending in 2008 : EUR 10.2 bn
EIB energy lending target for 2009 : EUR 12.0 bn
EIB and the Policy Context
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RENEWABLE ENERGY
EU POLICY CONTEXT
•
•
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Long term political commitment to develop Renewable Energy (Energy
package of 2008)
Binding objective for Renewable Energy to account for 20% of EU energy
mix by 2020 (up from less than 7% in 2005); minimum 10% of biofuels in
petrol and diesel.
Support for emerging Renewable Energy technologies.
EIB LENDING ACTIVITY
•
Strong increase of EIB lending for Renewable Energy investments from
EUR 0.5 bn in 2002 to EUR 2.2 bn in 2008
DEVELOPMENT OF NEW INSTRUMENTS
Energy Efficiency Finance Facility
Wind energy facilities to be developed for small scale on shore sector
Roll out to the photovoltaic and solar power sector in due course
Renewable Energy
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EIB’S ENERGY FINANCING IN 2008
Total Lending to the Energy Sector 2008
EUR 11.8 bn
Distribution
36%
Other 2%
Renewable
Energy 19%
Conventional
Energy 43%
Renewable Energy Financing in 2008 amounted to EUR 2.2 bn
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Renewable Energy
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EIB’S RENEWABLE ENERGY FINANCING
IN 2008
Wind
34%
Biofuel/
Biomass Hydro
9%
3%
Multi sector
26%
Solar
28%
Wind Energy projects accounted for 34%
of EIB’s Renewable Energy Financing in 2008
Renewable Energy
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ENERGY EFFICIENCY LENDING
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Most EIB projects lead to energy ‘savings’ – energy efficiency as a side
effect
Projects targeting Energy Efficiency averaged EUR 2.2 billion per annum
(8% of total EIB lending)
Includes demand side and supply side projects
- Power production has focused on combined heat & power and district
heating (EUR 405 million in 2007 – 4.8% of energy signatures)
- Smaller demand side projects (principally benefiting SMEs) supported
through dedicated energy efficiency global loans
(EUR 917 million in 2007)
- Significant investment in automotive R&D, almost exclusively for
improved energy efficiency and CO2/NOx reduction
Many examples of energy efficiency investments as components of
industrial or accommodation investments
Energy Efficiency
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ENERGY EFFICIENCY: INDUSTRIAL
PROJECTS
•
Modernisation of critical equipment
- e.g. replacement of boilers in Pulp & Paper industry,
10-20% gains in EE
•
Replacement (and expansion) of existing capacity
Energy Efficiency
- e.g. process improvements
in the chemical sector allowing
15-30% gains in EE
•
Use of residues (biomass) for power generation
- e.g. food industry
•
R&D aimed at product / process improvement
- e.g. automotive sector, 3-5 % EE gains
Energy Efficiency
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NEW COURSES OF ACTION
• An EU Sustainable Energy Financing Package
• Energy Efficiency, Renewable Energy, Technical Assistance, Smaller
Actors, Municipalities, SMEs
• Maximise leverage effect of EU financing
• Financial Support of EU SET (Strategic Energy Technology Plan)
• Objective to accelerate deployment of low carbon demos
• 1st gap analysis; 2nd implement financing measures e.g. CCS
• European Clean Transport Facility
• Ensure sustained Research & Development in all modes of transport
equipment despite slowdown
• Hybrid, electric, hydrogen
New Courses of Action
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EIB LOAN PRODUCT
Large-Scale Projects (typically > EUR 50m investment cost)
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Corporate Loans and Project Finance
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Project could consist of single or multiple sites
•
Comprehensive loan appraisal justified by project size
•
Where EIB takes full project risk, loan may fall under SFF => EIB loan amount
capped at 200m € (maximum amount could be lower depending on riskiness of
project)
Small-to-Medium Scale Projects (typically < EUR 50m investment cost)
•
•
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Programme or Framework loan to corporate or intermediary
Traditionally, intermediaries were financial entities – global loans
EIB now aslo provides loan facilities to developers for bundling small-scale projects
EIB Strategy:
•
Increase exposure to small-to-medium scale wind energy projects through:
- Intermediated loans on a risk-sharing basis; and
- Facilities for developers.
Financial Instruments
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CONCLUSIONS
 Lending to the energy sector one of the EIB’s top priorities
 Nordic and Baltic Sea area clients amongst the lead borrowers in the
energy sector, particularly renewable energy
 EIB to expand its lending programme by EUR 15 bn p.a
 Additional activity to focus on investments in sustainable growth and
cohesion of European regions
 Credit demand fully taken up by European industry and infrastructure
providers, but especially by SMEs
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CONTACT
Adam Bruun, Senior Loan Officer, Denmark
[email protected]
Michael O’Halloran, Head of Division, Nordic and Baltic Countries
[email protected]
Tilman Seibert, Director, Baltic Sea Department
[email protected]
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Annexes
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Climate Change Initiatives
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Mainstreaming climate change issues in all investments
Compliance with EU environmental principles and standards enshrined in
the European Principles for the Environment (EPE): www.eib.org/epe
The EIB can finance up to 75% of the costs of projects and offer other
attractive financing features
Other EIB climate change initiatives include:
• Carbon Funds with partner institutions
• EUR 10m Climate Change Technical Assistance Facility (CCTAF)
• EUR 3bn Facility for Energy Sustainability and Security of Supply – for
projects in partner countries
• Global Authorisation Mechanism, for small and medium-scale projects
outside the EU
• Studies on climate change
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Climate Change Technical Assistance Facility
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Supporting preparatory work for CDM and JI mechanisms
EUR 10m managed by the Bank – EUR 5 million from the EIB, EUR 5m
from external resources
EIB project development expertise, combined with that of consultants
Conditional funding reimbursed once the project has yielded carbon credits
Activities include:
– Carbon credit feasibility studies
– Preparation of carbon credit documentation
– Validation of the Project Design Document
– Registration of the project
– Carbon credit commercialisation activities
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Carbon Funds in Partnership with IFIs
Developing carbon markets while promoting environmental lending
• Acquiring carbon credits on behalf of participants in the funds, both private
and public
• Acting as a carbon credits sales outlet for EIB project promoters
• Stimulating and complementing the private sector in the carbon market
• EIB Funds:
– Multilateral Carbon Credit Fund (MCCF) with the EBRD – EUR 190m
– Carbon Fund for Europe (CFE) with the World Bank (IBRD) – 1st
tranche
EUR 50m
– The EIB/KfW Carbon Programme with KfW – EUR 100m
– Post-2012 Carbon Credit Fund, with Caisse des Dépôts, ICO, KfW and
NIB – EUR 100m
– Fonds Capital Carbone Maroc with Caisse des Dépôts et de Gestion,
France's Caisse des Dépôts – EUR 26.5m (target size)
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EIB’S PARTICIPATION IN EQUITY FUNDS
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Strategy to also support Equity Funds for Renewable Energy (RE)
Investment of Funds to be counted eligible for EIB have to comply
with economic benchmark (and other criteria)
Green Alliance
Enercap
DIF Renewable
Energy
Espirito Santo
Infrastructure
Fund
Target Size
Sector
Focus
120 M EUR
Onshore wind, Solar
PV, biodiesel
100 M EUR
Principally onshore wind
120 M EUR
Principally onshore
wind
100 M EUR
Onshore wind,
solar
Geography
ES, PT
CE, SEE
Pan EU
Iberian Peninsula
M. Oriol Serra
[email protected]
Tel:+34 932 722 980
M. Michael White
[email protected]
Tel:+420 227 316 222
M. Jean-Pierre Sweerts
[email protected]
Tel:+31 20 655 47 06
Contact
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