Alessandra Spinelli, EC DG International Cooperation and Development, EU Blending for climate change

1. 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

2. International
Cooperation and
Development
2
July 2015
Africa Investment
Facility (AfIF)
EU Blending facilities regional coverage

3. 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
Allocatedresources
c. € 2.7 billion
Mobilise
EFIs resourcesof
€ 23 billion
Support
272 projectswith
total est.budgetof
€ 50 billion
3% 5%
16%
28%
48%
guarantees
risk capital
interest rate
subsidy
technical
assistance
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

4. Leveraging resources and expertise, enhancing coordination
Common Implementing Rules (CIR)
"Financial instruments … shall be, wheneverpossible, 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 …

5. 5
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%
Blendingprojects
with climate
changeobjective

6. 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)

7. 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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8. 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 8

9. 9
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

10. 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

11. 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.

12. 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!

13. 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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