Leveraging private sector investment for low carbon and

climate resilient infrastructure

EU blending framework

European Commission

Directorate General for International Development and Cooperation

Paris, 1 March 2016

International

Cooperation and

Development

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July 2015 Africa Investment

Facility (AfIF)

EU Blending facilities regional coverage

2007-2014 Blending operations

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

Grant approvals by sector (in %)

3

0

100

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013 2014 2015

Thematic

IFP

CIF

AIF

IFCA

LAIF

ITF

NIF

Allocated resources

c. € 2.7 billion

Mobilise

EFIs resources of

€ 23 billion

Support

272 projects with

total est. budget of

€ 50 billion

3% 5%

16%

28%

48%

guarantees

risk capital

interest ratesubsidy

technicalassistance

investment grant

0% 1%

2% 4% 4%

13% 16%

18% 42%

0% 10% 20% 30% 40% 50%

agriculture

ICT

mixed

environment

social

private sector

water/sanitation

transport

energy

Leveraging resources and expertise, enhancing coordination

Common Implementing Rules (CIR)

"Financial instruments … shall be, whenever possible, under the lead of the EIB, a multilateral European financial

institution, such as the EBRD, or a bilateral European financial institution, e.g. bilateral development banks, possibly

pooled with additional grants from other sources."

EIBEBRDAFDKFWIDB

CEBAECIDCDPAFDB

CDBCOFIDESSOFID

CAFBIODEGOeEBIFC

ADBBCIEFMONIB …

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EU Climate action through blending

CLIMATE CHANGE WINDOWS were announced in November 2010.

They provide new, additional resources for climate change adaptation and mitigation, and transparent

tracking of all climate change related projects in the EU regional blending facilities.

More than €1,25 billion EU grants

committed to green projects. 62%

Blending projects

with climate

change objective

EU Climate action through blending

Transparent tracking of all climate change related projects

funded by the EU and European Finance Institutions through the

regional facilities.

Blending = major source of additional financing for fight against climate change in the framework of EU

development projects

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Rio Marker 0

Rio Marker 1

Rio Marker 2

Projects categorized by Rio Marker 0 (CC is not an objective), 1

(CC as significant objective) and 2 (CC as principal objective)

The Kyrgyzstan Sustainable Energy Efficiency Financing Facility (KyrSEFF) is designed to assist local financial intermediaries

support small-scale sustainable energy projects by combining credit lines with technical assistance. KyrSEFF supports residential

and industrial energy efficiency projects, as well as small-scale renewable energy investments, by providing loans to Participating

Financial Institutions, FIs then pass these on to private sector borrowers, thus helping financial intermediaries improve their

capacity to appraise and finance energy efficiency and renewable energy projects.

Total project volume: approx. €20.8 million

IFCA: €6.4 million

Involved FI: EBRD

Snapshot: Kyrgyzstan Sustainable Energy Efficiency

Financing Facility (KyrSEFF) - IFCA

The Kyrgyz economy is very energy-intensive, due to a high rate of

energy losses, out-of-date energy infrastructure and inefficient

equipment.

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Snapshot: combatting climate change in agriculture programme

Mex-3CAP - LAIF

The project aims to support Fideicomisos Instituidos en Relación Con La Agricultura

(FIRA), the Government’s Trust Fund for Rural Development, in fulfilling its mission

to contribute to sustainable development and competitiveness of Mexico’s rural

areas with technical and financial services to improve the quality of life of its

inhabitants, while mainstreaming climate change mitigation and adaptation in the

agricultural sector.

LAIF will provide technical assistance for institutional strengthening and market development in the field of sustainability and

climate change, as well as an investment grant to ensure that innovative and value-added projects are implemented. The aim of the

LAIF investment grant is to improve the financial profile of the project and/or the project owner by reducing the risk perceived by

other financial intermediaries, improving the profitability of the project and increasing the borrowing capacity of the end-user.

Total project volume: € 100 million

LAIF contribution: €5 million

Involved FIs: AfD, IDB

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Part of the Moroccan Solar Plan. When fully developed (2GW target

capacity), it will be the largest solar power plant in North Africa.

Independent power producer (IPP) to implement the

Snapshot: Ouarzazate solar power plant - NIF

Solar power plant with initial capacity of 125-160 MW in Morocco.

Reduces dependence on energy imports and avoids the generation of

at least 250000 tons of CO².

project is determined by MASEN through competitive bidding. NIF grant to bring down cost of electricity during

initial stage.

Total project volume: approx. €807 million

NIF contribution: €30 million

Involved FIs: EIB, AFD, KfW

Snapshot: Lake Turkana Wind Power station - ITF

Over 300MW installed capacity and a net capacity factor

above 50% that is the largest wind farm that is currently

being developed in Sub-Saharan Africa. EU-Africa ITF (EDF)

agreed to provide a capital participation in the form of a

preference share to cover the financing gap.

The project contribute to addressing currently unmet and growing electricity demand using a renewable energy

resource and thus reduce the country’s dependence on imported fossil fuels and climate-sensitive hydropower, support

economic development and avoid the environmental impacts of fossil-fuelled electricity generation.

Total project volume: approx. €625 million

ITF contribution: €25 million

Involved FIs: EIB, FMO, Proparco

The Global Energy Efficiency and Renewable Energy Fund (GEEREF)

GEEREF is a fund-of-funds initiated by the EC in 2007

• Public sector funds leverage private sector investment into clean energy projects in

developing countries and emerging markets

• It invests in renewable energy (RE) and energy efficiency private equity funds globally

combatting climate change.

• The EIB and EIF act jointly as GEEREF Fund Advisor and as mandated trustee of the Commission's

equity share in GEEREF.

GEEREF investment portfolio

Total GEEREF size is more than EUR 220m:

EUR 112m public sector commitments

EUR 110m private sector commitments

25 private investors from Europe, North America and Australia

More than EUR 140 million committed in 10 regional private equity funds:

GEEREF’s current leverage is as high as 50 times: 1 EUR of grant invested into GEEREF a total of EUR 50 are

deployed into eligible projects on the ground!

THANK YOU!

• For more information, consult DG DEVCO's blending webpage:

• https://ec.europa.eu/europeaid/policies/innovative-financial-instruments-blending_en

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