Introduction: EIB is a policy-driven public institution It finances projects that promote European Union policy priorities It applies EU policies, legislation, international standards, best practice Same approach for environmental issues in the EU and Acceding Countries as elsewhere Introduction


What is EIB ?: EU’s long-term lending institution Owned by EU Member States IO Acceding Countries join EIB in May 2004 Self-financing institution, designed to operate as a bank Raises its financial resources on capital markets, not EU budget AAA credit rating, works on a non-profit basis Favourable rates for investment fostering EU policies In 2002 - €40 billion for projects, mainly in Europe The Bank cofinances with other lenders. What is EIB ?


EIB mandates: Flexible response to new EU initiatives, such as: Innovation and knowledge based activities Trans-European Networks Environment EU external development co-operation policies: Acceding Countries for Membership - €6.3 bn Partnership Countries in the Mediterranean - €3.7 bn African Caribbean and Pacific Countries – Investment Facility - €1 bn Latin American and Asian countries - €720 m and environment schemes in N.W. Russia EIB mandates


EIB lending objectives: From May 2004: subscribed or guaranteed capital to over €400 billion Institutional lending objectives in EU: development of poorer regions promoting Europe’s knowledge based high-tech economy (the "i-2-i" initiative) protection and improvement of the environment and the quality of life improving transport and communications, in particular the Trans European Networks (TENs) health and education ensuring secure energy supplies supporting investment to improve European industrial competitiveness and the activities of small and medium sized enterprises EIB lending objectives


Balancing priorities: Balancing environment with other objectives Careful analysis of the environmental side-effects Insistence on most appropriate design, mitigating measures, etc. Ensure each project meets EU environmental standards and policies Multi-disciplinary due-diligence approach: size, nature, location, the legal framework, and the environmental capacity of the promoter Ensure EIA process has been followed Balancing priorities


Promoting the environment: In 2002 - €11 billion directly for environment 1999-2002, total €32.3 billion Corporate Operational Plan’s environmental target: 33 % of total lending in EU and Acceding Countries In 2002, environmental loans in EU and Acceding Countries came to 29% of total Supports European policy initiatives, e.g. EU Water and Renewable Energy Initiative, launched in Johannesburg Support for regional initiatives in the Mediterranean, Baltic and St Petersburg and Kaliningrad regions of Russia, Danube and Black Sea regions. Promoting the environment


Water sector: Wide range, private and public schemes - from water supply, waste water treatment to flood protection In last two years: Modernising, extending and improving water supply and sewerage and wastewater treatment in Vienna, Turku (Finland), Berlin, Hamburg, Trier, the Hague, Madrid ; schemes in Flemish Belgium, The Netherlands, the Valencia and Seville regions and Island of Madiera, Yorkshire and north-east and north-west England, in Ruhr basin and Saxony-Anhalt in Germany, Skane region in Sweden, in Lisbon and Tagus Valley in Portugal. Construction of flood barrier on Lower Ems river, Lower Saxony, Germany; and in Italy the conservation and protection of the Venice Lagoon, the reconstruction of infrastructure and flood protection in Tuscany, the Valle d’Aosta and Piedmont regions affected by floods in Autumn 2000. Water sector


Waste Management: European legislation on waste is increasingly exacting EIB lending focused on waste-to-energy projects, reduction in air pollution, combined heat and power schemes…… Construction of urban waste processing and recycling plants in Melun, Ile de France, and Halluin, near Lille in France; and in Porto area, Portugal; an innovative steel waste treatment facility in Luxembourg. Construction of modern less-polluting power plants involving cogeneration in Vodskov, North Jutland, Denmark; San Roque, Spain; Tampere, Finland; Eskilstuna, near Stockholm; and in Ravena and Milan, Italy. Sorting and biological treatment of solid waste. Construction of a steam generating waste incineration plant at Zwentendorf in Lower Austria, and a biomass-fuelled combined heat and power plant in Östersund, Sweden. Waste Management


Industrial pollution: EIB encourages best environmental practices and verifies implementation of mitigation and compensation measures. Emphasis on innovative state-of-the-art technologies. Rationalisation and modernisation of several plants for semi-finished copper products in Germany, France and Italy; upgrading and modernisation of a refinery in the Marche region of Italy; construction of a polyolefin plant and R&D facilities at Schwechat, near Vienna. Industrial pollution


Urban development: Mix-use development to improve environment and encourage social and economic sustainability. As in Salerno: Rimini, Lecce and Venice in Italy; Norrköping near Stockholm; Berlin, Hamburg, Mannheim, Leipzig and in small communities in Lower Saxony, Germany; and in Athens and other Greek towns in preparation for the Olympics. Upgrading and construction of social housing in Vienna and Finland. Upgrading public transport infrastructure. Construction and expansion of metro and light metropolitan rail systems in Madrid, Barcelona, Valencia, Lisbon and Porto, Copenhagen, and Stockholm. Urban development


Renewable energy sector: Focus on smaller-scale schemes, including: wind, small-scale hydro, biomass and geothermal resources. A substantial loan to a major Italian energy company for renewable energy investment programme; refurbishment of hydroelectric power plants and the construction of wind farms throughout Scotland. EIB target for renewable energy in five years: 15% of the energy portfolio - €500 million a year. Renewable energy sector


Climate change: Exploring support for EU climate change policies, development of carbon market. Focus on projects addressing greenhouse gas abatement, particularly through energy savings and reduction of energy intensity: more fuel-efficient cars modern public transport systems increased support for cogeneration of heat and electricity gas-fired power stations district heating systems R&D projects for innovative technologies for harnessing renewable energies (within " i2i " programme). Climate change


In the Acceding Countries: EIB is significant lender: 2001-2002 - €1.8 billion in environmental loans, out of a total of € 6.3 billion. Focus on helping Acceding Countries meet Acquis Communautaire. Bringing Acceding Countries up to EU standards for waste management is a challenge. Upgrading of municipal solid waste processing facilities, and the decommissioning of a former uranium mine near Ljubljana in Slovenia. Enhancing natural and urban environment. Construction and renovation of social housing throughout the country, improvements to the urban environment and social housing in city of Poznan in Poland. In the Acceding Countries


Water in Acceding Countries: Water lending to €330 million in the two years. Flood prevention and reconstruction in Poland, the Czech Republic and Slovakia (€770 million). Improve water supply and wastewater systems in the cities of Szczecin,and Lodz in Poland; and for similar projects throughout Hungary, Slovakia and Slovenia. EIB’s support for municipalities’ environment improvement capacity. Modernisation and expansion of the Bucharest and Prague Metros, and Bucharest’s urban transport system. In the energy sector, the modernisation of combined heat and power plants in Swiecie, northern Poland and in Latvia. EIB Environmental Framework Loans for municipalities and regional authorities implementing smaller-scale projects. In Hungary and Slovenia for regional waste management and water and wastewater treatment. Water in Acceding Countries


Conclusion: EIB works closely with other organisations, EuropeanCommission, private banking sector and public and private promoters. Memorandum of Understanding with Commission on environment. EIB’s expertise built up over the past 45 years. EIB ensures that all projects supported are environmentally acceptable in line with principles and standards of EU environmental policy. Conclusion


Slide16: European Investment Bank and the Environment by Peter Sedgwick, Vice President CENTRE FOR EUROPEAN POLICY STUDIES BRUSSELS 19 September 2003