EIB Approach to support Sustainable Waste Management ... · EIB Circular Economy conference...

12/10/2018

EIB Approach to support Sustainable Waste Management, Circular Economy and to mitigate

Climate Change

European Investment BankDr. Patrick DORVIL

9th International Circular Economy Week & Conference, Environmental Campus Birkenfeld

12/10/2018

• The EIB: The EU Bank• Financing Circular Economy • EIB Priorities outside Europe• Regional Blending Facilities• External Investment Plan (EIP)• EIP: 3 Pillars• SWM in Low- and Middle Income Countries:

Drives and Triggers

Agenda


The EIB: the EU bank

12/10/2018

‣ Natural financingpartner for the EU institutions since 1958

‣ Around 90% of lendingis within the EU

‣ Shareholders: 28 EU Member States

Investing in Europe’s growth


EIB Group financing in 2017

12/10/2018

EUR78.2bnEUR 250bnTotal investment

supported


Climate finance pioneer

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EUR 19bn

for climatein 2017

USD100bn

2016‐2020


EIB Group financing in 2017: EUR 78.16bn

12/10/2018

SignaturesEFTA &

EnlargementCountries

EUR 1.62bn

EasternNeighbours

EUR 0.88bn

Africa, Caribbean, Pacific,

South AfricaEUR 1.47bn

Asia, Central and Latin America

EUR 1.99bnMediterranean

EUR 1.96bn

EuropeanUnion

70.24bn

Outside EU

7.91bnEUR

EUR

Total EUR 78.16bn


Innovation Finance Advisory:A multi-dimensional approach to the Circular Bioeconomy


2017-2018 key actions

EIB’s CE Lending Guide

EIB’s conceptual work and awareness

EIB stakeholder mobilisation

CE Finance Support Platform

Working Group FinanCE meeting: co-organized and hosted by AS/IFA at EIB inLuxembourg (focus outside EU, Green Bonds)

EIB Circular Economy conferenceCopenhagen (25 Oct. 2018): presentation onCE – Bioeconomy Investment Platform

External web, including contact points for Advisory and knowledge sharing

Intranet, for awareness raising, knowledge sharing and access to CE experts (Financial and Technical project advisory)

Highly successful CE economy events hosted andpromoted by the EIB > Focused in identifyingsound projects and in investors’ awareness

Recent events hosted/ supported by the EIB:

IFA Circular Economy Work streams


EIB Priorities outside the EU

Security of energy supply

Social and economic Infrastructure

Private sector development

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Environmental sustainability

support the implementation of the EU external policy, promotesustainable growth and employment

Climate Action: transversal policy 28% of EIB loans in Low‐ and Middle Economies


EIB products: We help catalyse investment

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LENDING BLENDING ADVISING

LoansBut also:

Guarantees

Equity participation

Combining EIB finance with grants, i.e. from the EU budget:

‐ High impact finance

‐ Higher risk projects for innovation

Prepare, evaluate and support the implementation of projects/ investment programmes

Support for public/private partnerships

Capacity buildingAttracting FUNDING for long‐term growth


Blending EU grants for external cooperation ‐EU Regional blending facilities

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European External Plan (2017)‐ EFSD‐ Africa Investment Platform‐ Neighbourhood Investment Platform


Mobilise Investments(EFSD):

‐ EFSD Guarantee (EUR 1.5bn);‐ Existing investment facilities

NIP & AFIP (EUR 2.6 bn)

Economic and social development in Africa and

EU Neighbourhood

Contribute to sustainabledevelopment

goals

ImproveInvestment Climate

ProvideTechnicalAssistance

Pillar 1 Pillar 2 Pillar 3

Help address the root causes of migration

External Investment Plan ‐ EIP


Blending operations under EU Regional Blending Facilities (2006‐2016)

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Annual grant approvals (in € million) Grant approvals by sector (in %)

0

100

200

300

400

500

600

700

800

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Thematic

AfIF

IFP

CIF

AIF

IFCA

LAIF

ITF

NIF

All facilities grant approvals to 380

operations € 3.4 billion

Average: € 9 million per operation

EFIs financing to approved projects ¹ *

€ 26.2 billionLeverage: 7.7/1

Total investment amount

€ 57.3 billionLeverage: 16.8/1

1 Regional Banks (AfDB, IADB, CDB, ADB ,...) and WB/IFC are NOT includedSource: presentation EC, Working Party on Development Cooperation December 7th, 2017

41%

22%

17%

12%

3%

3%

1%

1%

1%

EnergyTransport

EnvironmentPrivate Sector

SocialAgriculture

MixedICT

Urban development

0% 10% 20% 30% 40%


EIP> Rationale and Effectiveness

EIP

ACTIONS Mobilising investments with the aim to improve the economic and social development in Africa and EU Neighbourhood

IMPACT

CONTRIBUTING TO THE SUSTAINABLE DEVELOPMENT

GOALS

ADDRESSING THE ROOT CAUSES OF MIGRATION

TOOLSPILLAR 1

European Fund for Sustainable Development

PILLAR 3Enhanced Investment

Climate

PILLAR 2Technicalassistance

DECENTJOBS

CREATION


EIP> Pillar 1> resources from EU and leverage


The EFSD Guarantee shall support financing and investments operations which:

provide additionality (the EFSD Guarantee support contributes to operationswhich could not have been carried out without the EFSD Guarantee; crowdingin private sector funding and addressing market failures or suboptimalinvestment situations as well as improving the quality, sustainability, impact orscale of an investment);

ensure complementarity with other initiatives (in particular the External lendingmandate operations managed by EIB);

ensure alignment of interest by providing adequate risk sharing by therespective eligible counterpart and other prospective partners;

are economically and financially viable;

remuneration: the EFSD Guarantee is to be remunerated.

EFSD Guarantee: some key aspects


Technical Assistance pillar of the External Investment Plan

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Source: EC

Three pillars of the EIP, including Technical Assistance


External Lending Mandate (ELM)

Economic Resilience Initiative (ERI)

Compatibility with existing EIB mandates:

ACP Investment Facility (IF)

Need to differentiate the risks covered (e.g.: sovereign risk for ELM, counterparty risk for EFSD

Guarantee). Under discussion with EC.

Complementarity for geographies. Potential to use the EFSD Guarantee to achieve larger magnitude of ERI resources e.g. in Southern Neighbourhood.

IF (and IFE) covers a wide spectrum of risks. As such, EFSD potential from EIB’s perspective in sub‐Saharan

Africa is limited

In accordance with the EFSD Regulation, operations covered under the EFSD Guarantee need to showcomplementarity with other initiatives (notably the ones managed by EIB).


SWM in LMIC: Drivers and Triggers

12/10/2018

Climate Change and Resources Management

• 640-760 m CO2eq worldwide from landfills/dumpsites

• Addressing SLCPs: mitigate near-term climate change

• Material recovery: Driver of recycling

• Recycling/Re-use: Reduction of GHG emissions

• Only 25% of recyclate recovered (Worldwide)

IIPublic Health/Envir. Protection

• SW: Public Goods, negative Externalities

• Waterborne diseases

• Groundwater pollution

• Public Authorities: Lack of awareness

• Inefficient drinking water production

I

Business Opportunities

• 46 bn $ spent: 40 bn Market gap

• More than 150 bn needs in 2025

• 5% Urban jobs in ACP

• 15-20 million of people

• Huge potential to create jobs: Skilled and unskilled people especially the recycling industry

III EIB Role

• Climate Action: 40% outside EU!

• Providing financial means, technical Assitance,

• Play a catalytic role for the private sector

• Profound experiences within and outside Europe

• European External Investment Plan

IV


Key Messages

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• Major needs and investment opportunities: Increase lending (private, public, PPP, Blending mechanism, etc.);

• Use waste as a resource: Circular Economy;• Strengthen energy recovery, and tackling of climate change;• Consider climate change related parameters and risks in our economic project

appraisal criteria;• Circular Economy entails

• Technological and process innovation • Financial innovation may also be required to create the financial products that can

sustain Circular Economy‐related investments

• External Investment Plan: Creation of a window of opportunities for assessing whether new financial instruments could be better tailored to Circular Economy‐related investments

• Joint EU‐EIB financial instruments such LAIF / AfIF/ CIF/EIP could be used to support EU’s policy on circular economy and enable further transition


12/10/2018

More information at: www.eib.org

[email protected].: +352 4379‐22000


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