Cement Sustainability Initiative. Climate Finance. European Investment Bank

Transcription

1 Cement Sustainability Initiative Climate Finance European Investment Bank Alberto BARRAGAN Madrid, 14 December 2016 European Investment Bank Group 1

2 EIB capital breakdown: 28 EU Member States European Investment Bank Group 2

3 The EIB at a glance Largest multilateral lender and borrower in the world Raise our funds on the international capital markets Pass on favourable AAA borrowing conditions to clients Some 500 projects each year in over 160 countries Headquartered in Luxembourg and 33 local offices Around staff: Not only finance professionals, but also engineers, sector economists and socio-environmental experts More than 50 years of experience in financing projects 15/12/2016 European Investment Bank Group 3

4 World s largest multilateral financier Long-term finance for sound & sustainable investment projects EIB in 2015: EUR 77.5bn EIB Group: EUR 84.5bn EIF in 2015: EUR 7bn Subsidiary specialised in risk financing for SMEs European Investment Bank Group 4

5 World s largest supranational borrower Total 2015 borrowing: EUR 62.4bn Mobilising resources worldwide Middle East & Africa 2% Americas 14% We are the largest issuer of green bonds EUR 4 bn in 2015 Asia 21% Europe 63% EUR 11 bn in 11 currencies since /12/2016 European Investment Bank Group 5

6 Key priorities ENVIRONMENT INFRASTRUCTURE INNOVATION SME EUR 19.6bn EUR 18.9bn EUR 18.7bn EUR 29.2bn 15/12/2016 European Investment Bank Group 6

7 World s largest provider of climate finance >25% worldwide 35% in world s developing regions EIB s 2015 Climate Strategy We are increasing our climate commitment: USD 100bn over next 5 years 15/12/2016 European Investment Bank Group 7

8 A strong response to the EU crisis 90 EUR 000bn (2004) EU-25 (2007) EU-27 (2013) EU EU-6 (1973) EU-9 (1981) EU-10 (1986) EU-12 (1995) EU Over EUR 500 billion since 2008 European Investment Bank Group 8

9 EIB group products Senior debt Long tenors Subordinated debt Estructurally Contractually Security Risk-sharing instruments Linked portfolio De-linked portfolio Equity participation Funds or Investment Plataforms Investment projects SMEs & MidCaps (through intermediaries) Risk Capital Guarantees Securitisation Growth financing European Investment Bank Group 9

10 Associated to EU programmes Direct Loans Banks Intermediated loans Structured financing / with project risk Beneficiary Intermediaries Financial instruments in association with the EU Commission Equity through Funds Juncker Plan European Investment Bank Group 10

11 Historic fall in investment in the EU Juncker Plan Fixed capital formation: base trend vs. historic norm vs. investment plan UE-28, 2013 prices, bn Base trend Investment Plan Historic norm, assuming Investment/PIB ratio of 21-22% 2,869 3,039 3,021 2,940 2,527 2,543 2,640 2,528 2,567 2,717 2,657 2,714 2,659 2,647 2,606 2,678 2,748 2,864 2,416 forecasts Source: European Commission European Investment Bank Group 11

12 Juncker Plan : 3 pillars Investment Plan for Europe Mobilise finance for investment European Fund for Strategic Investments (EFSI) Cooperation with National Promotional Banks Provide investment advice European Investment Advisory Hub European Project Investment Portal Creating favourable environment for investment Regulatory framework improvements Reduction of barriers Structural reforms Objetive: mobilise 315 bn investment in the EU over three years Grupo Banco Europeo de Inversiones 12

13 Leveraging 21 bn to mobilise 315 bn of investment Comission: EUR 16 bn EIB: EUR 5 bn 21bn ~61 bn expected 315 bn expected EUR 21bn EFSI ~3x 5x Financing EIB + EIF Investment EUR 315 bn EU Gtee + EIB Capital EIB Group financing Mobilisation of Investment projects European Investment Bank Group 13

14 Climate Finance European Investment Bank Group 14

15 The time has come European Investment Bank Group 15

16 Why +2 C? European Investment Bank Group 16

17 Staying below +2 C: not business as usual European Investment Bank Group 17

18 EU is the world leader in Climate Action European Investment Bank Group 18

19 EIB response: >25% climate lending target European Investment Bank Group 19

20 Climate Change hits developed and developing countries alike European Investment Bank Group 20

21 Expected CC impacts vary across continents, across regions, across seasons European Investment Bank Group 21

22 Introducing Climate Risk in our project analysis European Investment Bank Group 22

23 What counts as Climate Action for EIB projects? European Investment Bank Group 23

24 EIB Climate Action elegibilities European Investment Bank Group 24

25 Mitigation vs. Adaptation European Investment Bank Group 25

26 Adaptation = increasing Resilience Reducing vulnerability & addressing impacts European Investment Bank Group 26

27 Adaptation: what the unavoidable looks like European Investment Bank Group 27

28 Adaptation: a regional matter European Investment Bank Group 28

29 Adaptation: local problems, global reach Need to look outside the project fence European Investment Bank Group 29

30 This is what resilience can look like European Investment Bank Group 30

31 Cement Industry Financing European Investment Bank Group 31

32 EIB financing to the EU Cement Industry Energy Efficiency, Climate Mitigation, Environmental Impact Best Available Technology Brownfield Plant Modernisa -tion Product & Process Improvement R&D European Investment Bank Group 32

33 EU Cement Industry: 404 million financing European Investment Bank Group 33

34 ITALCEMENTI REZZATO ENERGY EFFICIENCY 1960s plant: one modern white cement line and two obsolete grey cement semi dry lines with long kilns, with high consumption of energy, water, raw materials and maintenance. The quantity of reserves, quality of the limestone and quarry proximity made this production site key in Italcementi production footprint The project concerned the modernisation of the cement plant, with the implementation of a new dry line for the production of grey clinker with capacity of 1 million tonnes per year, which substitutes two existing lines with total capacity of about 0.8 million tonnes per year. Substitution of the two existing long kilns for grey clinker production with a new kiln (design capacity of tonnes per day) with a 5-stage suspension preheater and pre-calciner; Creation of a heat recovery system from the clinker cooler exhaust air, to recover the sensible heat of the waste air primarily for plant services, but also for industrial uses (white kiln, coal mill grinding, heavy fuel oil heating); Installation of a new raw meal grinding department with the conversion of the existing raw meal grinding to cement grinding; Installation of a de-dusting system and of a NOx abatement system with the implementation of a Selective Non-Catalytic Reduction (SNCR) system and an innovative high dust Selective Catalytic Reduction (SCR) system. Grupo Banco Europeo de Inversiones European Investment Bank Group 34

35 ITALCEMENTI REZZATO ENERGY EFFICIENCY Through the implementation of state-of-the-art BAT technology, the project improved the environmental characteristics of the plant Significant reduction of pollutant emissions Sulphur Dioxide (SO2) reduction by close to 80% Nitrogen Oxides (NOx) reduction by more than 60% Dust reduction by about 40% Improvement of resource efficiency Reduction of water consumption by some 10% (this number includes the unchanged consumption in the white clinker line and the capacity increase of the grey clinker line) Specific consumption of raw materials (per tonne of clinker) reduced by about 8% Energy Efficiency improvement Specific heat consumption (per kg of clinker) reduced by 20% Electrical specific consumption reduced by about 17% Fuel consumption reduced by about 25% Specific CO2 emissions (per tonne of clinker) reduced by 9% Grupo Banco Europeo de Inversiones European Investment Bank Group 35

36 For more information: Tel.: Thank you! European Investment Bank Group 36