Global climate talks continue in Doha - Supporting electric-car
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04-2012
The EIB – The EU bank 148
Global climate talks
continue in Doha
Supporting electric-car
sharing services in Paris
Portuguese windfarms
are a ray of sunshine
ISSN 0250-3891 www.eib.org
148 The EIB – The EU bank
November 2012
Editorial
As one of the largest providers of finance for climate action,
the EIB firmly supports the EU’s goal of making the Euro
pean economy much more climate-friendly and less energy-
consuming by 2050. By backing investment in cleaner and By backing investment in cleaner and
more climate-resilient technologies, we seek to boost Europe’s more climate-resilient technologies,
competitiveness today and long-term sustainable growth for we seek to boost Europe’s
tomorrow. competitiveness today and long-term
sustainable growth for tomorrow.
Building a low-carbon economy is clearly one of the most
critical global challenges of the day. It is all about achieving
a smarter kind of growth and getting more out of less. It is
also a huge opportunity to boost growth and employment in Contents
Europe – in particular in the long run. Up to 1.5 million ad
ditional jobs could be created by 2020. Making our society EIB IN FOCUS
low-carbon will generate new, green jobs and cutting-edge 03 Global climate talks continue in Doha
technologies. It will reduce Europe’s dependence on import 04 EIB launches public consultation on its energy lending policy
ed energy and bring us lower energy bills, comfortable and 05 News in brief
modern homes, cleaner air and more mobility. This switch to 06 ‘We must tackle the economic crisis, the jobs crisis, the resources
crisis and the climate crisis jointly’
a more resource-efficient and smarter economy is absolutely
vital for Europe if it wants to remain competitive on the global EIB IN ACTION
scale. But it will not happen overnight. 08 EIB climate action in numbers
10 Supporting electric-car sharing services in Paris
By using creative new urban transport solutions, innovative in 12 Backing innovative enzyme research in Denmark
dustrial production processes, energy-efficient building con 14 Portuguese windfarms are a ray of sunshine
cepts and far-sighted resource plans, Europe can move ahead 15 From Bristol to Milan, local sustainable energy investments
by getting better at finding sustainable solutions that make get a lift
economic sense. 16 Marguerite drives new renewable energy and infrastructure
investments
The EIB supports investments that help bring about sustainable 18 Helping the rural economy grow with sustainable forestry in
Hungary
growth, whether by providing its financial backing for projects
20 Partnering for green growth in Southeast Europe
directly, or by lending its expertise or teaming up with other fi
22 Backing South Africa’s first solar tower project
nanciers to achieve more through joint action. By highlighting
some of the projects we support, this edition of the EIB INFO NEW@EIB
shows that the solutions are already out there. 23 an Public-Private Partnerships leverage investment to get Europe
C
out of the economic crisis?
23 New EIB publications
23 Events at EIB
EIB INFO is published periodically by the Communication Department of the European Investment Bank. – Editor in charge: Sabine Kayser – Layout: EIB graphicTeam, Sabine Tissot –
Photos: EIB photographic library, © Walney offshore windfarm, © Enel, © European Commission, © Gemasolar, © Marguerite Fund, © Autolib, Pascal Anziani, © Novozymes, © Eneop2,
© Green for Growth Fund, © Abengoa – Your feedback is welcome. Please send your comments and suggestions to eibinfo@eib.org.
E I B I N F OC US
Global climate talks continue in Doha
The time for international climate negotiations has come around again.
This year, the parties to the United Nations’ climate change convention
are gathering together as of late November in Doha, Qatar, for the 18th
international conference on climate change. As in previous years, the EIB
is present as an observer, showcasing its activities and contributing to the
climate finance debate.
D
ubbed ‘COP (for conference of the
parties) 18’, the climate talks are
expected to mark another step
towards a new international agreement.
This has to be concluded by 2015 with the
establishment of the future international
climate regime replacing the Kyoto Pro
tocol as of 2020. its strong catalytic role in attracting public by the United Nations to provide universal
and private finance, the Bank is very well access to modern energy services and to
On several occasions, the European Union placed to support the objective of a low- double both the global rate of improve
has offered to go beyond the 20% emis carbon and more climate-resilient society ment in energy efficiency and the share
sion reduction target set in its “20-20-20 within and outside Europe. of renewable energy in the global energy
by 2020 initiative”, should other key emit mix by 2030. The Bank has developed a
ters decide to join its efforts. But the EU is The EIB provides financial support for in number of new instruments together with
also looking further ahead: the so-called novative climate action via its lending to other institutions to finance renewable
Roadmap 2050 sets out a path for a more key sectors including renewable energy, energy and energy efficiency especially
cost-effective transition to a low-carbon energy efficiency, sustainable transport, in Sub-Saharan Africa to the tune of more
society. Climate finance also remains high water, flood management and forestry. than EUR 1bn. These are expected to be
on the agenda. Further progress is expect But it also develops innovative financial operational in the course of 2013. The EIB
ed at COP 18 to make the Green Climate instruments that can bear higher finan is building on existing mechanisms such
Fund operational by early 2013 now that cial risk in cooperation, for example, with as the Global Energy Efficiency and Re
the operating budget and host country, the European Commission. Another as newable Energy Fund and the EU-Africa
South Korea, have been decided. pect of climate finance is improving the Infrastructure Trust Fund, and is working
adaptation of our societies to the ef in close collaboration with the EU Energy
Together with other international financing fects of climate change. At the EIB, this Initiative.
institutions, the EIB is closely involved in requires climate resilience to be factored
setting up the fund, which by 2020 should into the assessment of all the projects it The EIB is also an active member of the
make some USD 100bn per year available finances. The Bank provides both advice Green Growth Action Alliance (G2A2).
to finance both climate change mitigation and finance for projects contributing to Chaired by Mexico’s former President
and adaptation in developing countries. climate adaptation. This is very much in Felipe Calderón and coordinated by the
line with developments at EU level, with World Economic Forum, this initiative
the European Commission planning the brings together government, business, in
EIB support for low-carbon and adoption of a Climate Adaptation Strat ternational finance institutions and civil
climate-resilient growth egy in 2013. society leaders to promote sustainable
growth through innovative financing. It
At a time of economic austerity and social aims to unlock financing for key technol
distress, when the risk is for climate finance Partnering on sustainable energy ogies like renewable energy, energy effi
to be down-sided by more urgent preoccu and green growth ciency, water infrastructure and biofuels.
pations, the issue nevertheless remains a The results will be shared with key plat
priority for the EIB. With a third of its lend The EIB is also supporting the Sustainable forms such as the G20 and the United Na
ing supporting climate action projects and Energy for All (SE4All) initiative launched tions Climate Change process. p
EIB INFO 4 – 2012 3
EIB IN FOCUS
EIB launches public consultation on its
energy lending policy
How can EIB financing best sup-
port EU energy policy and con-
tribute to an energy system
that meets society’s economic,
social and environmental needs?
Where does our financing have
the biggest positive impact in
transforming and decarbonis-
ing the energy sector in line with
EU energy policy? To get some
answers, ideas and perspectives,
the EIB has launched a public
consultation.
S
takeholders and experts from the lending for renewable energy and ener energy sector and EUR 85bn per annum
energy sector, as well as the wider gy efficiency projects increased to half of in energy efficiency.
public, are invited to contribute total energy sector lending (from 32% to
to this exercise by submitting written in over 52%), reflecting the strong growth in These investment needs look even more
puts until the end of the year and engag those markets and the high priority given challenging against the backdrop of the
ing with the Bank at a public consultation to these sectors. This trend is expected to current economic crisis, which has led a
meeting on 7 December in Brussels. The continue in the future. number of EU Member States to reduce
EIB expects to adopt a revised lending their support for renewable energy tech
policy in the summer of 2013. nologies.
Enormous investment needs
A public consultation therefore pro
A wider review of energy lending Achieving the EU policy goal of establish vides a timely opportunity to discuss
ing a sustainable, competitive and secure how EIB investments can be put to best
The public consultation is part of a wider energy system that meets society’s eco use in achieving these ambitious targets
review of the EIB’s energy lending policy, nomic, social and environmental needs throughout the transition to a low-carbon
which was developed in 2006 and 2007. will require enormous investment. The energy system. More information about
Driven primarily by EU policies (renewa European Commission’s estimates are in this public consultation is available at
ble energy, energy efficiency, and security the order of EUR 120bn per annum for the www.eib.org. p
of supply) the Bank translates these into
lending objectives and project screening
criteria for financing. While energy has tra
ditionally been one of the key sectors for
EIB lending, it only became a top priority
in 2006. Since then, our energy lending
has tripled, from EUR 4bn to EUR 12.8bn in
2011, mostly in the EU (EUR 10.8bn in 2011).
In addition, energy projects make a signifi
cant contribution to the Bank’s climate ac
tion objective. Over the 2007-2011 period,
4 EIB INFO 4 – 2012
E I B I N F OC US
In brief
EU High Representative and Project bond pilot scheme launched
EIB President visit Egypt
The pilot phase of the project bond initiative is ready for roll-out following the sign
ing of a cooperation agreement between the European Commission and the EIB.
“The initiative provides an opportunity for re-opening capital markets as a source
of financing for crucial infrastructure projects in the fields of transport, energy and
communications, which are essential for ensuring growth and competiveness in
Europe,” said EIB President Werner Hoyer. “The pipeline of potential projects looks
promising, with first signatures expected for early next year”, he added.
Supporting sustainable growth and The project bonds scheme seeks to attract institutional investors such as pension
jobs in the Southern Mediterranean funds and insurance companies to capital market financing of long-term infra
countries in transition is a priority for structure projects. “The project bond initiative is an innovative means of unlock
both the European Commission and ing private investment in infrastructure, enhancing competitiveness and helping
the EIB. Demonstrating this coordi to boost growth and job creation,” European Commission Vice-President Olli Rehn
nated response to the Arab Spring, commented.
EU High Representative Cathy Ashton
and EIB President Werner Hoyer trav
elled to Cairo in November to meet
with top Egyptian officials. Joint support for Europe’s automotive sector
On this occasion, the EIB signed a first The Commission and the EIB will continue their cooperation through the CARS 2020
EUR 200m tranche of the EUR 600m action plan, which aims to reinforce the competitiveness and sustainability of the
loan approved by the Bank for the EU’s automotive industry between now and 2020. Reducing transport-related CO2
extension of the Cairo Metro and a emissions is a key objective of the Bank. The EIB funds projects aiming at develop
EUR 45m loan for a Community De ing cleaner transport modes such as electric vehicles and related infrastructure.
velopment Programme. Both projects
represent the Bank’s first response to
the new administration’s priorities in
this sector. Joint Action Plan for
“With the Arab Spring, Egypt and Growth in Central and South Eastern Europe
Europe are embarking on a new era
in their relations. The challenge for The EIB Group has agreed to com
the new Egyptian government is now mit a minimum of EUR 20bn to
to restore confidence in the econo a new Joint Action Plan with the
my. Developing infrastructure, such World Bank Group and the Euro
as ensuring mobility, and fostering pean Bank for Reconstruction and
business through the Community De Development, aimed at supporting
velopment Programme is key to pro economic recovery and growth in
moting growth and employment,” EIB Central and South Eastern Europe.
President Werner Hoyer commented.
The Action Plan is a direct response to the continuing impact of eurozone problems
on the economies of emerging Europe. It includes more than EUR 30bn of joint com
mitments for the period 2013-2014. This support will address priority areas such
as SMEs, renewable energy and energy efficiency, innovation and convergence.
EIB INFO 4 – 2012 5
EIB IN FOCUS
‘We must tackle the economic crisis, the jobs crisis,
the resources crisis and the climate crisis jointly’
At the Doha climate conference the European Commission and the EIB are sharing more than just a joint stand.
They are also working together ‘on the ground’ in a number of initiatives. EU Commissioner for Climate Action
Connie Hedegaard talks to EIB INFO about the EU 2050 low-carbon roadmap, climate action in times of eco-
nomic crisis and increasing cooperation with the EIB on innovative financing instruments for maximum results.
Beyond the climate talks in Doha, next year on a 2030 target for emissions sure that adaptation considerations are
do you see the EU well on track and energy. addressed in all relevant EU policies.
for moving towards a low-carbon
economy in 2050? Would you say we are building Earlier this year, the Commission already
momentum for an increased focus launched a web portal on climate change
We have managed to decouple emis on adaptation? adaptation (http://climate-adapt.eea.eu
sions from economic growth. Emissions in ropa.eu/), which provides information
Europe are continuing to go down: we are As a result of global warming, extreme about the expected impact of climate
now 18% below 1990 levels. So we are on weather events are increasing in frequency change in Europe and the vulnerability
track to meet the EU’s 2020 climate and and magnitude. We need to protect peo of the various regions and sectors. The site
energy targets if we implement all envis ple, buildings, infrastructure, businesses will be a valuable instrument to help deci
aged measures. and ecosystems from the impacts. Action sion-makers choose the best solutions for
taken now will avoid greater costs and the benefit of their citizens.
But if we are to halt global warming joint losses later.
ly with our international partners, the EU’s In times of economic crisis, has
emissions must be reduced by 80-95% by Adaptation efforts are already under way climate action fallen out of fashion?
the middle of the century. The Commis across the EU but in a piecemeal manner;
sion’s 2050 low-carbon roadmap, pub fewer than half of the Member States cur Unfortunately, the climate crisis has not
lished last year, showed this is doable rently have a strategy in place. The Euro gone away just because we are now busy
and offered pathways for different eco pean Commission is working to develop with the economic crisis. Opinion polls
nomic sectors. As a next concrete step, an EU adaptation strategy which is due to show that people are more than ever con
the Commission intends to start working be adopted next spring and aims to en cerned about climate change. It gets very
6 EIB INFO 4 – 2012
E I B I N F OC US
Interview
duction of smart meters which will allow
consumers to better control their energy
use. Currently, we are only halfway towards
the agreed target of increasing energy ef
ficiency by 20% within this decade. It is
important that all Member States swiftly
implement all agreed measures, if we want
to reap the benefits of energy efficiency.
The European Commission and the
EIB are already working together
on a number of areas, such as
renewable energy and energy
efficiency in cities, supporting
investment funds that help cut GHG
emissions. How do you see this
cooperation ‘on the ground’?
Making the transition to a low-carbon
economy requires big upfront invest
ments, for example in renewable energy,
Connie Hedegaard,
EU Commissioner for smart energy and transport networks and
Climate Action insulating our building stock. We also have
a duty to assist developing countries in
making their economies climate-friendly
and in adapting to the consequences of
climate change.
Both here and in the South, the EIB has
"Both here and in the South, the EIB has an important role to play in providing an important role to play in providing fi
financial support and leveraging additional national and private funds". nancial support and leveraging additional
national and private funds. Positive results
have been achieved through the ELENA
facility and the JESSICA initiative for sup
porting sustainable energy investments
by local and regional authorities in the
real when you see images of Sandy in the found that many great things are already EU, and GEEREF for developing countries.
US, for example. Leaving the climate crisis being done, in parallel to policy efforts.1
to be solved only later would come with a This will now be complemented by the
very high price tag, as emissions will keep How do you see the contribution new EU project bonds for infrastructure
on growing and the consequences of cli energy efficiency can make in this investments. In the next budget period,
mate change will be felt increasingly. context. Is this low-hanging fruit from 2014 to 2020, we want to increas
waiting to be picked? ingly make use of this kind of innovative
Therefore I believe we must tackle the eco instrument, to achieve maximum results
nomic crisis, the jobs crisis, the resourc Energy efficiency is crucial to achieving with a limited budget. p
es crisis and the climate crisis jointly, not our climate goals and to building a low-
consecutively. Moving to a low-carbon carbon economy over the next decades.
economy is not only about tackling cli Not only is it the cheapest way of cutting
mate change; it will also help us create emissions, reducing our energy consump
new growth and jobs, while decreasing tion will also drive down our energy bills
our dependency on energy imports and and thus improve the competitiveness of
improving our living environment at the European business. There is still low-hang
same time. ing fruit to be picked in the buildings sec
tor, for example.
As a concrete response, I have just launched a world you like
a campaign that will run until the end of Some new measures were adopted this with a climate you like
europa.eu
2013: ‘A world you like’ is looking at what autumn to boost the refurbishment of
happens in the Member States, because we public buildings and to roll out the intro 1
http://world-you-like.europa.eu/en/
EIB INFO 4 – 2012 7
EI B IN AC TION
EIB financing for climate change mitigation and adaptation
is one of the largest among international financial institu-
tions. The Bank financed 166 climate action projects
with a total of EUR 18.5bn in 2011 alone.
EIB
climate
action
in numbers
8 EIB INFO 4 – 2012
E I B I N AC TION
The EIB supported
25 solar energy
projects amount-
ing to EUR
2.3bn*
*figures cover the last four years
(2008-2011)
The EIB helped to finance
42 wind farm
operations with
some EUR 7bn
Energy efficiency measures were
supported with a total of EUR 6bn
Support for
environmentally-
friendly techno
logies and related
R&D amounted to
EUR 12bn
The EIB lent some
EUR 26.5bn for
sustainable transport,
thus helping to reduce
greenhouse gas
emissions
EIB INFO 4 – 2012 9
EI B IN AC TION
Supporting electric-car
sharing services in Paris
More than 1 750 electric cars are already touring the French capital,
making it one of the first cities in Europe to introduce a comprehensive
open-access infrastructure for electric vehicles. One year since its launch,
the car-sharing service is on track to become a success and a mobility
model for other cities. The EIB is lending EUR 75m to fund these services
that are helping Paris go green.
hicles is expected to double as new mu
nicipalities join. Some 38 800 people have
signed up for the service, which is open to
any individual or business. The Bluecars
can be used for only a few minutes to a
few hours, going from one car-sharing sta
“
This new EIB loan will allow us to Revolutionising urban travel tion to another. In fact, the vast majority
develop new innovations and ap of trips, some 90%, are one-way.
plications in the strategically im Paris’ bike-sharing system, introduced five
portant area of electrical storage,” says CEO years ago, has been a roaring success and Another novel feature of the system is that
Vincent Bolloré, whose company devel a model that has been replicated in cities it allows you to reserve a parking place in
oped the so-called Bluecar used by the across Europe. Since last year, the French advance. Given the constant scarcity of
car-sharing service. capital has also offered a car-sharing sys parking space in Paris – an important part
tem to get around the city using 100% of traffic in the city is generated by peo
The recent funding will go towards the de electric vehicles. The Bluecars were rent ple only looking for a parking spot – this
ployment of an interconnected roadside ed more than 500 000 times in the first is a very attractive selling point for people
parking, renting and recharging network, 10 months. with a fixed destination.
as well as research, development and in
novation (RDI) concerning subscription, Recently celebrating its first birthday, the This innovative urban scheme is a real test
billing, recharging and fleet-management car-sharing system already has over 1 750 case for electric vehicles, which still struggle
systems. This follows a EUR 130m loan in Bluecars cruising around the French capi to gain market acceptance, and the recently
2011 to support the RDI process for Bol tal, which has put in place 710 recharging developed battery technology. The Bluecar
loré’s battery technology. and parking stations. The number of ve is already one of the country’s most popular
10 EIB INFO 4 – 2012E I B I N AC TION
Supporting electromobility in Europe
Reducing transport-related CO2 emissions is a key objective of the EIB’s lending
for climate action. As part of its efforts to foster low-carbon transport solutions,
the EIB supports the development of electric vehicles and related infrastructure.
Electromobility can help to reduce the impact of climate change, increase the
EU’s energy supply from renewable sources, and improve the quality of life in
urban areas. It also has the potential to strengthen the competitiveness of the
European automotive industry by linking it to low-carbon technologies, as used
for hybrid, plug-in hybrid and battery electric vehicles.
But developing electric vehicles is just part of the answer. An intelligent and
workable charging infrastructure is also required. This includes a whole range
of new technologies and applications beyond electricity supply, such as intelli-
gent communication networks, smart and efficient charging and billing systems,
as well as auxiliary services. Building an accessible, safe and customer-friendly
infrastructure is a complex multi-industry challenge.
Its development must ensure that electricity remains available at all times and
that energy is used efficiently by including a continuously increasing share
of renewable energy sources. Hence, the unused excess energy generated by
renewable sources, mostly at night, can be offset and put to use by the electric
vehicles, recharged during the off-peak and night periods. As part of its EU 2020
Flagship Initiative “resource-efficient Europe”, the EU is seeking to promote the
development of the infrastructure needed to support “green vehicles” in gen-
“We are supporting cutting-
eral and electromobility in particular.
edge technology because this is
the key to sustainable economic
development and job creation for
young people.”
electric vehicles. These days it is even hard collective equivalent of 660 tonnes of CO2 pilot projects to test electric vehicles and
to spend time in the streets of central Paris emission savings. Once all 3 000 cars are related infrastructure. The EIB can support
without seeing one of them pass by. on the streets, they are expected to trav electric vehicle infrastructure promoters –
el 60 million zero-emission kilometres a both public and private – in various types
year, collectively reducing emissions by of project, ranging from pure research and
Blue is greener the equivalent of 22 500 cars in the French development to manufacturing and the im
capital. plementation of the related infrastructure.
Because electric vehicles do not generate
local pollution and are quieter than ordi The promotion of electromobility in “This demonstrates our firm commitment
nary vehicles, their use is particularly well Europe also opens up a new economic sec to innovation, research and development,”
suited to cities, where air pollution and tor with strong potential for job creation. says EIB Vice-President Philippe de Fon
noise are real issues. Within the first few months of operation, taine Vive. “We are supporting cutting-
the Bluecar has helped to create some edge technology because this is the key
Electric vehicle powertrains are by their 1 000 new jobs. to sustainable economic development and
nature more energy-efficient than conven job creation for young people.”
tional engines. They can also help to lower
CO2 emissions further by increasing the Innovative mobility schemes on The EIB supports RDI in the automobile
use of renewable energy during off-peak the green track sector to help deliver innovative and ef
hours and using the vehicle batteries as ficient transport solutions with lower car
renewable energy storage. The electric vehicle infrastructure and bon intensity. In 2011, the Bank gave its
charging services market in Europe is still backing to some EUR 8.7bn worth of in
So far Paris’ Bluecars have covered a dis at an early stage of its development. How dustrial and energy RDI investments across
tance of over 5 million kilometres, with a ever, more and more cities are setting up the EU. p
EIB INFO 4 – 2012 11EI B IN AC TION
Backing innovative
enzyme research
in Denmark
Bioinnovation can help make everyday products, from washing detergents to fuels,
more efficient and environment-friendly. The EIB backs research and development
concerning innovative enzyme products in Denmark.
A
EUR 100m loan to Novozymes, the In 2011, the worldwide application of
world’s largest producer of industri Novozymes’ products helped its cus
al enzymes based in Copenhagen, tomers reduce their CO2 emissions by an
is supporting its research, development and estimated 45 million tonnes. The com
innovation (RDI) projects in enzymes, novel pany has set itself the goal of enabling a
proteins and micro-organisms. 75 million tonne reduction of CO2 emis
sions in 2015.
“In nature, enzymes catalyse biochemi
cal reactions in all living organisms. It is
enzymes that convert food in our stom Supporting leading-edge
achs into energy and enzymes that turn bioinnovation
the falling leaves in the forest into com
post. Here at Novozymes, enzymes help us Together with customers across a broad
make products more efficient,” says Mads array of industries, the company is creat
Bodenhoff, Vice-President of Finance at ing tomorrow’s industrial biosolutions, im
Novozymes. “They can turn agricultural proving its customers’ business, and the
waste into fuel, they replace oil-based use of our planet’s resources.
chemicals in detergents and they can keep
bread fresh for longer,” he adds. “With over 700 products used in 130
countries, our bioinnovations improve
In industry, enzymes replace chemicals industrial performance and safeguard
and accelerate production processes. They the world’s resources by offering better
help companies make more from less by and more sustainable solutions for to
saving water, energy, raw materials and morrow’s ever-changing marketplace,”
waste with technology that replaces con says Bodenhoff.
ventional chemicals and reduce the envi
ronmental impact. The EIB has already successfully provided
the rapidly growing and innovative com
“All this helps to build a more environmen pany with financial backing for its RDI. No
tally sustainable world with smarter and vozymes also regularly figures high on the
more efficient products. At the end of the European Commission’s R&D scorecard,
day it’s about making the most of the re which compares the R&D investment lev
sources we have,” Bodenhoff explains. “Our els among Europe’s top companies. It in
vision is to create the necessary balance vests 14% of its revenue in research and
between better business, a cleaner envi development, which is high in comparison
ronment and better lives.” to industry peers.
12 EIB INFO 4 – 2012E I B I N AC TION
Converting waste on a big scale to a recent report from the environmen
tal NGO WWF, biofuels produced from
Novozymes is also developing the en agricultural residues offer a more sus
zymes needed to produce cellulosic tainable alternative to fossil fuel and con
biofuel, also known as second generation ventional biofuels. They could even help
biofuel. This is largely seen as preferable Europe achieve 100% renewable energy
to biofuel of the first generation, as it uses use by 2050, provided researchers can
agricultural residues and waste rather than determine the volume of agricultural resi
crops such as corn and wheat. dues, such as straw, that may be used
sustainably.
“We are working to make these alternative
fuels available in the near future. We be “There are large amounts of biomass cur
lieve it is possible to turn waste into fuel, rently not being used,” Bodenhoff points
which makes both environmental and eco out. “The way forward is to convert the res
nomic sense,” Mads Bodenhoff says. “The idue part of the crop into sugars which
45m tonnes main goal of our research is to take second
generation biofuel production to another
level by making it commercially relevant.
can then be used for fuels.” This way the
parts of a crop that are not used for food
or feedstock – such as wood chips, stalks
In 2011, the worldwide The enzymes we develop help biofuel pro and husks – can be turned into a valuable
application of ducers to optimise the process, so they can resource. “The technology is ready now
compete first with conventional biofuels and offers a solution to many problems”,
Novozymes’ products
then with gasoline.” he adds. “If you take just 20% of the ag
helped its customers
ricultural and forest residue available in
reduce their CO2 Biofuel based on waste is able to reduce Europe, which can sustainably be taken
emissions by an carbon dioxide emissions by as much as away from the fields, you can meet half
estimated 45 million 90% compared to fossil fuels. According of Europe’s need for fuel.” p
tonnes.
“At the end of the day it’s about making the most of the resources we have.”
EIB INFO 4 – 2012 13EI B IN AC TION
Portuguese windfarms are In total, for every hour of electricity con
a ray of sunshine
sumed in 2011, fifteen minutes came
from renewable source power stations,
of which eleven minutes were from wind
power. Electricity generation from renew
able sources enabled estimated savings of
EUR 825m in fossil fuel imports and in CO2
emissions licences in the same year. It also
Despite the crisis, Portugal is still a world leader in renewable energy. A avoided emissions equivalent to 8million
tonnes of CO2.
large part of its electricity comes from wind, solar and hydro power. The
EIB is seeking to give the country’s sustainability drive a push by fund-
ing an ambitious wind energy programme and adapting its lending to Boosting competitiveness and
an exceptional economic environment. employment
Wind energy does not only make environ
mental sense with its huge greenhouse
gas emission savings, but the clean energy
“
We are working to connect a total shareholders – EDP Renováveis, Enel Green is also commercially sound. In fact, wind
of 1200 MW in wind energy capac Power and Generg – we were able to go energy prices in Portugal are among the
ity to the grid. Some 900 MW of this ahead with this ambitious plan, despite lowest in Europe.
has already been installed, with wind farms a very difficult funding situation,” Costa
spread all over the country,” says Hugo Cos adds. “Expanding our wind energy capacities
ta at Eneop2, a venture company develop helps us to increase the security of supply
ing windfarms. A total of 600 wind turbines In total, more than EUR 800m of loans are and energy independence, which are fun
are expected to be installed by the end of backing this renewable energy push and damental for the recovery of our economy,”
2014 under this programme. helping to support it by funding different Costa explains.
elements, from studies and engineering
Wind energy projects require large upfront to the manufacture and installation of the At the same time, the country is invest
investments. Especially in Portugal, which wind turbines. ing in energy storage, namely through
has been hard hit by the crisis, such pro pumped storage hydro power, which will
jects are set to feel the crunch. In order allow the country to make even more of
to help make sure important investments Supporting the renewable energy the renewable energy it produces, devel
can go ahead despite the current difficult push op electric vehicle capacity and even open
market conditions, the EIB has proposed up the prospect of exporting electricity to
a tailor-made financing solution for this Portugal already tops the list of Europe’s neighbouring countries.
particular initiative. biggest renewable energy producers. Ac
cording to the Portuguese Renewable En As a whole, the initiative – including an in
“The EIB has played a crucial role in se ergy Association, electricity from renew dustrial cluster to produce the wind mills
curing the funding for this huge project. able sources accounted for 25% of total and related industries, as well as the actual
Thanks to the loans, and the efforts of the energy consumption in Portugal in 2011. setting-up of the windfarms – is expected
to generate around 1 700 direct and 5 500
indirect jobs.
“These are precious high-skilled jobs,
which are what Portugal most desper
ately needs,” he concludes.
Unemployment is above 15% and rising.
But the positive impact can be felt be
yond the country’s borders. Companies
In total, for every hour of from across the EU, some of them inter
electricity consumed in national wind industry leaders installed
2011, eleven minutes came in Portugal, are contributing to the wind
from wind power. initiative by each providing their exper
tise, services and products – making this
a truly European undertaking! p
14 EIB INFO 4 – 2012E I B I N AC TION
From Bristol to Milan, local sustainable
energy investments get a lift
The specialist support from the EIB under the European Local Energy Assistance
programme – ELENA in short – has already helped a number of cities with their
sustainable energy investments. From Bristol in the UK to Milan in Italy, some 15
cities across Europe have already signed up.
35% cost
reduction
T
The refurbishment
he ELENA technical assistance fa The Bristol investment programme will fur
cility is a joint EIB-European Com ther be focused on improving the energy
of 98 public buildings in the
mission initiative to help local efficiency of over 6 000 homes and public Province of Milan will lead
authorities prepare energy efficiency or buildings; installing over 7 000 renewable to a reduction in energy
renewable energy projects, improving the energy generating systems in homes and costs of at least 35%.
chances that their plans will attract exter public buildings; and developing small
nal finance. It is a good example of how district heating networks where several
limited budget money can be leveraged buildings are heated from a single, effi
with loans to support EU policy objectives. cient boiler.
“The programme will help generate up to
1 000 new jobs in the construction and Energy efficient buildings in Milan
environmental technologies sectors. It
should also kick-start and attract much In the Province of Milan, a large energy
bigger investment,” says Bristol City Coun efficiency potential in public buildings
cil Leader Barbara Janke. Bristol is the first was long held back in budget-constrained
local authority in the UK outside London to municipalities lacking the technical ca
receive a grant from the EIB under ELENA. pacity to develop a flow of projects.
The EUR 3.1m will help to meet most of Thanks to the ELENA support, buildings
the costs of developing an energy servic have now been chosen for energy refur
es company and investment programme. bishment and preparations for the pro
gramme, such as tenders, energy audits Urban areas account for around 70% of
and agreements with expert consultants the energy consumption of the EU. Yet the
Solar schools in Bristol are under way. Total investment in the potential for sustainable energy-related in
Milan metropolitan area will amount to vestments has until now remained largely
“In practical terms this will lead to cheaper some EUR 90m. untapped. When it comes to implementa
bills for thousands of residents through in tion, the problem is not so much availabil
vestment in energy saving measures. It will “This year, we took a major step with the ity of finance but lack of know-how or ca
also mean that as a city we will be gener signing of a EUR 13m contract, of which pacity to implement large-scale projects.
ating our own energy, primarily through the lion’s share is covered by a grant ELENA funds can be used for structuring
a major investment in solar energy gen from the EIB,” explains Guido Podestà, programmes, business plans and energy
eration,” Janke adds. As part of the Solar President of the Province of Milan. “This audits, preparing tendering procedures
Schools programme, the City Council is will allow us to go ahead with the refur and contracts, and paying for project im
installing solar energy systems at no cost. bishment of 98 public buildings, mainly plementation units. ELENA aims to encour
Schools will also be installing energy ef schools located in 16 municipalities, and age authorities to think ambitiously and
ficient lighting and insulation and rolling will lead to a reduction in energy costs of showcase energy efficiency and renew
out energy awareness activities with staff at least 35%, which is a huge improve able projects that can be replicated across
and pupils. ment for us.” the EU. p
EIB INFO 4 – 2012 15EI B IN AC TION
Marguerite drives new renewable
energy and infrastructure
investments
This pan-European equity fund acts as a catalyst for key investments in renewables, energy and trans-
port. Set up by Europe’s leading public financial institutions, it combines a market-based principle of
return to investors with the pursuit of public policy objectives. Two years after its launch, it is already
delivering on projects that contribute to climate action, energy security and the building of trans-Euro-
pean networks.
A
lso known as the 2020 European
Fund for Energy, Climate Change
and Infrastructure, Marguerite is
C-Power will the first of its kind. Launched in 2010 with
provide power to the backing of six major European finan
600 000 people. cial institutions (namely the EIB, Caisse des
Dépôts et Consignations, Cassa Depositi e
Prestiti, Instituto de Crédito Oficial, Kredi
tanstalt für Wiederaufbau and PKO Bank
Polski), it makes capital-intensive infra
structure investments. Together with the
European Commission and other institu
tional investors the fund has commitments
of EUR 710m.
A strong greenfield focus
Headquartered in Luxembourg with an of
fice in Paris, the fund’s aim is to make cap
ital-intensive investments in three main
sectors: energy, renewables and transport
in the EU. Up to 20% of the total fund size
may be invested in one single EU coun
try. More specifically, Marguerite pursues
two objectives: firstly, to combat climate
change and to contribute to implement
ing the EU’s so-called 20-20-20 climate
and energy targets. These are a 20% re
duction in EU greenhouse gas emissions
from 1990 levels, raising the share of EU
16 EIB INFO 4 – 2012E I B I N AC TION
els using First Solar’s thin film technology
have been installed for the project, which
A further investment was made in 36 MW of the 56 MW Massangis solar
started generating electricity in October.
photovoltaic project in France.
Earlier this year, a further investment was
made in 36 MW of the 56 MW Massangis
solar photovoltaic project, also in France.
These purchases were followed by the ac
quisition of a 45% stake in Autovía del Ar
lanzón, the concessionaire of a motorway
project in Spain, part of the trans-Europe
an transport network.
In October 2012 the fund also acquired a
49.99% stake in the Tychowo and Kukin
ia wind farms located in the north-west
energy consumption produced from re ber 2011. It completed its first investment of Poland from Austria-based develop
newable resources to 20%, and a 20% im at the end of last year with the acquisition er RP Global Group, which will remain a
provement in the EU’s energy efficiency. of a stake in C-Power, the owner and op 50.01% shareholder. Tychowo is a 50 MW
Additionally, Marguerite seeks to make a erator of the Thornton Bank offshore wind wind farm and has been fully operational
significant contribution to the develop farm located in the North Sea 30 km off since May 2010. The Kukinia wind farm is
ment of the trans-European networks in the Belgian Coast. currently starting construction.
transport and energy.
Once completed, the wind farm will have Finally, the Marguerite Fund expanded
Marguerite has a strong focus on green a total capacity of 325 MW, including the its wind farm portfolio in November 2012
field investment or asset creation. A mini 30 MW already operational, enough to pro with the acquisition of a 50% stake in the
mum of 65% has to be invested in new vide power to 600 000 people and to avoid 80 MW Chirnogeni project in Romania
projects, with the remainder (a maximum 450 000 tonnes of carbon emissions per from Cyprus-based developer EP Global
of 35%) being allocated to expansion in annum, to the benefit of the environment. Energy, which will keep a 20% share of the
vestments or businesses with substantial C-Power will thus contribute 10% of the project whilst the remaining 30% stake
capex requirements. Marguerite can in renewable energy needed for Belgium to has been acquired by the EnerCap Power
vest up to approximately one third of the meet its EU objective of a 13% renewable Fund I, a private equity fund.
total fund size in each of the transport, energy share by 2020.
energy and mature renewables segments. The project, which is about to start con
Marguerite also acquired 36 MW of the struction, comprises 32 Nordex N90/2500
A truly European vehicle, Marguerite is 115 MW Toul-Rosières ground-mounted 2.5 MW wind turbines with a total installed
destined to serve as a model for the es solar photovoltaic project, Europe’s larg capacity of 80 MW. It is located in the south-
tablishment of other similar funds in the est solar field located in the north-east east of Romania in the county of Constanţa.
EU wishing to combine a market-based of France, at a former 522 hectares-wide The wind farm is expected to start commer
principle of return to investors with the airforce base. One and a half million pan cial operations in early 2014. p
pursuit of public policy objectives.
Steady investments in less than
a year despite difficult economic Toul-Rosières is Europe’s largest solar field located in the north-east of France.
times
“So far, the fund has total investment com
mitments in excess of EUR 165m. It has an
advanced investment pipeline in all its tar
get sectors across the EU-27, and we expect
to announce several additional investments
very soon,” said Nicolás Merigó, CEO of Mar
guerite Adviser SA.
Despite a very challenging market environ
ment Marguerite has so far invested in six
projects in five EU countries since Decem
EIB INFO 4 – 2012 17EI B IN AC TION
Helping the rural economy
grow with sustainable
forestry in Hungary
Forestry projects mitigate greenhouse gas
emissions, while also assisting adaptation
to climate risks. To help reduce Hungary’s
soil erosion, capture carbon and diversify
the rural economy, the EIB has provided a
EUR 200m loan for afforestation and sus-
tainable forest management.
T
he loan will help more than 6 000
Hungarian farmers to establish
new forest plantations on 63 000
hectares of agricultural land. Another
3 000 hectares covered by the programme
is owned by approximately 800 public au
thorities and municipalities. Financing is
also being provided to improve the man
agement of 170 000 hectares of existing
forest and to support the necessary train
ing and technical assistance to implement
the programme.
Supporting employment and
preserving the rural heritage
“More than 3 000 beneficiaries have al
ready received support for more than
23 000 hectares of afforested land,” says
Dr Miklos Maácz, Head of Department with
the Managing Authority at the Ministry
of Agriculture and Rural Development in
Budapest.
The programme will generate substantial
employment in rural areas. It is estimat
ed that over 4 000 jobs are being created
during the site preparation, planting and
forest management and administration
phases. Workforce demand in agriculture
and in forestry peaks at different times of
the year, so the two can complement each
This operation has been followed other to sustain employment in the sec
by similar afforestation projects in tor. For example, the programme to sup
Poland, Spain and Turkey. port young forest stands, which was rolled
out in 2012, requires considerable manual
18 EIB INFO 4 – 2012E I B I N AC TION
work. Around 3 000-4 000 people are ex
pected to benefit from this part of the pro Increasing climate resilience
gramme alone.
Adapting early to the consequences of climate change is more effective and less
“Our good geological, natural and eco
costly than forced, last-minute emergency action. Many of the Bank’s activities
logical conditions are in favour of agricul
in the forestry sector are therefore aimed at adaptive measures, mostly in the
tural production in Hungary. But beyond
EU but also in emerging and developing economies in close cooperation with
this, the role of rural development for so
the European Commission and other financing institutions.
ciety is much bigger than its ecological
weight,” Dr Maácz explains. “Notably, the Forests can facilitate adaptation to some of the effects of climate change such
programme has a strong impact for local as soil erosion and increased flood risk and they offer great potential benefits
farmers and the rural population in terms in terms of biodiversity, soil fertility and watershed management. And they are
of employment and revenue – Hungary major carbon sinks that regulate the global climate.
is a net exporter of agricultural products.
Sustainable forestry can also make a crucial contribution to climate change mit-
Moreover, it makes it possible to retain the
igation by managing these important carbon stocks, lowering emissions and
population and supports the preservation
providing a source of renewable energy.
of the rural heritage – both are equally im
portant aspects.”
From home furniture to honey
The new plantations will be predominant
ly composed of broadleaved trees, princi
pally poplar and black locust, also known
as false acacia, with some oak and beech.
The wood will be used for a variety of pur
poses: construction, furniture and parquet,
fencing, packaging boxes, pulp and pa
permaking and burning for heat and en
ergy. Black locust is a successful and widely
planted species in Hungary, which can fix
nitrogen and thus improve soil fertility and 3 000 beneficiaries
is also an excellent bee-forage plant, pro
viding the basis for the country’s impor “More than 3 000 beneficiaries have already received support for more than
tant production of acacia honey. 23 000 hectares of afforested land.”
The EIB loan is the first operation to focus
exclusively on a Rural Development Pro
gramme supported by the European Ag Adapting to changing weather of soil are lost due to water and wind ero
ricultural Fund for Rural Development conditions sion in Hungary each year. Water erosion af
(EAFRD), a Common Agricultural Policy fects 2.3 million hectares in hills and moun
fund. It has helped break new ground in “Erosion is a serious problem in Hungary tain areas; wind erosion affects 1.4 million
the Bank’s strategy of blending its financ and in certain areas the degradation of soil hectares, mainly sandy soils and black soils.
ing with EU funds and extending its ac is considerable. The steps we are taking to Establishing carefully planned plantations
tivities to rural investment. As a result, this protect the soil are important to prevent in the right areas can make an important
operation has been followed by similar af further loss of precious soil,” Dr Maácz un contribution to reducing soil erosion by
forestation projects in Poland, Spain and derlines. “The rate of erosion in forests is stabilising and protecting the soil.
Turkey. much less than on agricultural land. So our
forests are currently preventing the deg Hungary plans to increase its afforested
Well-managed forests are relatively safe radation of 32 million tonnes of soil and area to 27% in the next 35-40 years by en
investments with multiple benefits: they particularly large forest areas play a deci couraging the establishment of approxi
reduce the erosion risk; as natural carbon sive role in protecting against wind ero mately 700 000 hectares of land, particu
stocks, they help regulate the climate; they sion and desertification.” larly areas with low soil fertility and high
safeguard biodiversity, protect watershed erosion risk. By safeguarding soil quality
areas and increase renewable wood re At 20%, forest cover is below the average and enhancing the functioning of water
sources; and they also help to diversify the for the 27 EU Member States (34.2%). It is sheds, forests also contribute to food se
rural economy. estimated that 80-100 million cubic metres curity. p
EIB INFO 4 – 2012 19EI B IN AC TION
Partnering for green
growth in Southeast Europe
The Green for Growth Fund is an example of how the EIB teams up with other
institutions in its support for climate action. Launched in 2009 together with the
German development finance specialist, KfW Entwicklungsbank, the Fund has
already supported a number of energy efficiency and renewable energy projects
in Southeast Europe.
T
his innovative public-private part prise better than discovering the heat in Residential energy efficiency
nership provides financing, includ sulation products available from IZODER, projects gain ground in Serbia
ing loans, equity and technical the Turkish thermal insulation trade asso
assistance, for sustainable energy projects ciation, was to find out that Şekerbank of As her restaurant catering business flour
in Southeast Europe, including Turkey, and fered one-year interest-free loans for en ished, Cana Petrovic knew she had to mod
the European Neighbourhood Region. ergy efficiency projects,” he adds. ernise her facilities, especially heating and
Other investors and donors include the cooling. Čačanska banka’s HIT Energy Loan
European Commission, the German Fed Şekerbank, the Fund’s first partner institu enabled her to install a thermal pump and
eral Ministry of Economic Cooperation and tion in Turkey, had an early interest in en solar collectors well ahead of schedule.
Development, the European Bank for Re ergy efficiency lending, focusing on retail “Besides saving costs, it’s made our busi
construction and Development and the clients from the very beginning. Private ness a much better workplace too”, she
International Finance Corporation, which households with loans for energy-saving says. The insulation upgrade has allowed
is part of the World Bank Group. insulation and double glazing, account her to make 40% energy cost savings.
for a significant part of the Bank’s Green
The Fund has recently been granted the for Growth Fund-financed sub-loans. Čačanska banka was the first Bank in Ser
LuxFLAG Environment Label, certifying its Şekerbank has also been very successful bia to partner with the Green for Growth
responsible investment approach. With in attracting small and medium-sized en Fund. In 2011 it financed 79 projects for
total investor commitments amounting terprises as well as retail clients to the fi reducing energy consumption in private
to over EUR 190m, the Fund has extended nancing of small renewable energy meas households and implementing clean
more than EUR 94m in loans to its partner ures such as solar water heaters or solar er production processes in small and
institutions, resulting in the financing of heat pumps. medium-sized enterprises (SMEs).
nearly 4 000 energy efficiency and small-
scale renewable energy projects. Building on solid market knowledge and Building on the Čačanska banka’s existing
a flexible approach to energy lending, product portfolio for private households
Şekerbank expanded its financing scope and SMEs, together with the Fund it de
Expertise in greening the local to include fully fledged renewable energy veloped a range of credit products aimed
energy infrastructure projects, specifically small hydro projects. specifically at encouraging investments in
The Fund supported this initiative and its energy efficiency.
“Last year, I burned 3 tonnes of coal trying Technical Assistance Facility Committee
to keep the house warm. Not anymore,” approved a project for building capaci The Čačanska banka energy efficiency pro
says Ahmet Bayram who has been able to ties to assess whether hydro projects meet jects mostly involve modernising building
reap energy savings of up to 20% thanks environmental and social compliance re envelope insulation and heating systems
to an insulation upgrade. “The only sur quirements. in homes and businesses. The portfolio
20 EIB INFO 4 – 2012You can also read
