| Project Detail |
Intermediated Framework Loan to support Deutsche Bank in the financing of renewable energy and energy efficiency projects mainly in Germany and other EU countries.
Additionality and Impact
The operation consists of a funding line to Deutsche Bank (DB) to support the development of the renewable energy and energy efficiency projects mainly in Germany and other EU countries. By the operation as well as the corresponding EIB funds attractive an d long term financing conditions DB will be incentivised to originate and source eligible projects.
Energy efficiency investments in buildings may suffer from a number of market failures (negative CO2 externalities, asymmetric information, and split incentives). As a result, investments in energy efficiency can be below optimal levels from a socio economic perspective.
RE projects can benefit from market based instruments, and thereby contribute to the policy objective to support the market integration of renewable energy projects. The production of electricity from low carbon sources addresses the market failure of negative climate and environmental externalities by reducing carbon emissions and other air pollution compared to fossil fuel generation.
The operation is expected to achieve a good economic return considering the economic value of the electricity generated and contribution to CO2 emission reductions and a very good broader social benefit.
The financing of this project is in line with the Banks lending priority objectives on Energy (Renewable Energy and Energy Efficiency) as well as the transversal objectives on Climate Action (mitigation), Environmental Sustainability (Pollution Prevention Control) and Social and Economic Cohesion, also contributing to the EU decarbonisation goals and REPower EU Action Plan.
The operation is therefore eligible under Article 309 (c) common interest in energy (renewable energy and energy efficiency) and environment (tackling climate change).
In addition, EIB has provided advice and introduction of EIBs Green CAES eligibility criteria.
Objectives
The project is an Intermediated Framework Loan to support Deutsche Bank in the financing of renewable energy and energy efficiency projects in the European Union
Sector(s)
Energy - Electricity, gas, steam and air conditioning supply
Industry - Construction
Proposed EIB finance (Approximate amount)
EUR 500 million
Total cost (Approximate amount)
EUR 670 million |
