UNIDO, European Investment Bank sign climate change joint declaration
LUXEMBOURG, 23 March 2022: Gerd Müller, Director General of the United Nations Industrial Development Organization (UNIDO), and Werner Hoyer, President of the European Investment Bank (EIB), signed a Joint Declaration to enhance cooperation, related to investment operations in the field of private sector development, with a particular focus on inclusive and sustainable industrialisation, and innovation and resilient infrastructure.
Making the announcement through a Press release EIB said joint areas of cooperation include circular economy, notably through the switch to Circular Economy Value Chains programme; clean energy and climate change action; small and medium enterprise development; access to finance and investment support; pharmaceutical and vaccine manufacturing; sustainable transport and e-mobility; and digitalisation and the fourth industrial revolution.
Müller told Hoyer: “We have a long-standing and excellent personal and professional relationship. I am very glad to strengthen the partnership between our two organizations to provide innovative and concrete solutions for a global recovery from the COVID-19 pandemic and a green energy transition. Together, we can build bridges between developing countries, emerging markets and European partner countries and foster global solidarity. This is urgently needed.”
Hoyer said: “Multilateral cooperation is vital to leverage private investment and make economies across the world resilient and sustainable. I am delighted to renew our collaboration with UNIDO, who is a key partner to promote an inclusive green transition globally. Via EIB Global, our new branch for international development and partnerships, we will join forces to reduce poverty and enhance investment in sustainable infrastructure. I look forward to continuing our long and fruitful cooperation in your new role as Director General of UNIDO.”
According to EIB, the two institutions intend to explore cooperation opportunities, especially in Africa, in the countries of UNIDO’s Programme for Country Partnership (PCP), as well as in the context of the Africa, Caribbean and Pacific (ACP) countries, where the EIB is particularly active. Other possible geographical areas could include Eastern Europe and the Mediterranean, Central Asia, Asia and Latin America, where both institutions already operate.
EIB said UNIDO and the EIB also agreed to develop and implement crisis- and fast-response operations when needed, such as COVID-19 support initiatives or activities to ensure resilient industrial production and sustainable economic growth.
European Investment Bank, Solas in energy efficiency initiative
LUXEMBOURG, 22 February 2022: The Solas Sustainable Energy Fund ICAV, a new EU-focused fund targeting energy efficiency investments, has reached its first close with €140 million. Making the announcement through a Press release, the European Investment Bank (EIB) said it has committed a €30 million cornerstone investment to SSEF, backed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe. EIB said that as one of the largest providers of climate finance, it supports projects that promote the priorities and objectives of the European Union.
According to EIB, the SSEF also signed an agreement with the Private Finance for Energy Efficiency (PF4EE) support scheme, a joint initiative launched by the European Commission via the LIFE programme and the EIB.
One of the goals of PF4EE is to encourage private institutional investors, such as insurers and pension funds, to invest in European energy efficiency infrastructure, particularly in the small- and medium-sized (SME) sector. Further cornerstone investors of SSEF are the Ireland Strategic Investment Fund (ISIF), IDEAL insurance as well as MEAG, the asset manager of the Munich Re group.
EIB said that by virtue of being a specialist investment advisor in the energy efficiency sector, Solas Capital will advise the fund. EIB said Solas Capital partners with a wide variety of leading energy service companies, project developers, equipment manufacturers, and public-sector bodies across the European Union to help facilitate their access to tailor-made financing and enable new investment in energy efficiency.
According to EIB, SSEF will offer funding for energy-saving business models focusing on the renovation of existing infrastructure, particularly buildings, using established and reliable energy-efficient technologies, such as modern heating and cooling systems, combined heat and power units, solar rooftops, building fabric, LED lighting, etc. Projects in both the public and private sectors will be supported, including the SME sector, which faces more challenges in securing finance, EIB said.
According to EIB, the project would entail an initial investment into a project portfolio of energy efficiency measures in buildings. It added that buildings are responsible for 40% of the European Union’s energy consumption, and 36% of its CO2 emissions.
To achieve near zero emissions in buildings, crowding-in private institutional capital will be essential, as public funding is not sufficient. SSEF, EIB said, is offering the market a unique financing solution and is closing the gap between energy efficiency funding needs and institutional investor requirements.
Kadri Simson, The Commissioner for Energy, said: “Investing into energy efficiency, renewable energy generation and building renovation is at the core of the European Green Deal and key to bringing down energy bills. The Solas Sustainable Energy Fund will combine the financial support from EFSI and PF4EE to mobilise affordable private financing for investments in the energy performance of buildings, including onsite renewable energy production.
The PF4EE guarantee will set the gold standard for equity investment fund initiatives and engage institutional investors in green assets. This will bring us one step closer to achieving the EU’s Green Deal ambition of becoming climate neutral by 2050.”
Thomas Östros, Vice-President, European Investment Bank, who is responsible for energy financing, said: “As Europe’s climate bank, the EIB is proud to be a cornerstone investor in the Solas Sustainable Energy Fund, which will help bridge the major financing gap for energy efficiency projects. Reducing the energy use in buildings is crucial to achieving a carbon-neutral economy in Europe by 2050. We believe that our commitment in this fund will catalyse further investments to meet the immense building renovation challenge.”