EFSI in the environment and resource efficiency sector

Promoting a resource-efficient and circular economy is high on the EU agenda. The circular economy has the potential to boost competitiveness, generate jobs and foster sustainable economic growth. The Investment Plan supported projects in the environment and resource efficiency sector.

The European Fund for Strategic Investments (EFSI) was the central pillar of the Investment Plan. It provided a first loss guarantee, allowing the EIB to invest in more, often riskier, projects. EFSI 2.0 underlined the importance of sustainability by linking EFSI to more cross-border and sustainable projects, in particular those that help achieve the COP21 climate targets, to help the transition to a resource efficient, circular and zero-carbon economy. At least 40% of EFSI infrastructure and innovation projects will aim to contribute to climate action in line with the Paris Agreement. EFSI 2.0 also explicitly targeted new sectors: sustainable agriculture, forestry, fisheries and aquaculture.

On Europe’s maritime economy, and in particular the blue economy, low levels of investment constrain the development of its full potential, particularly in the sector of marine renewables, where high risks and longer-term paybacks often limit investors’ appetite. The Commission worked with stakeholders to explore the possibility of setting up Investment Platforms with National Promotional Banks in this field.

Investment platforms

Investment platforms, vehicles which pool smaller projects by location or sector, can be utilised to make it easier for individual environmental projects to unlock financing. Individual projects may not necessarily need large loans. Instead, a number of these smaller projects can be bundled within a larger platform that can be backed by the EFSI.

EFSI in combination with other EU funds

The EFSI was just one of many EU financing tools available to project promoters involved in circular economy initiatives. For example, LIFE - the EU’s financial instrument supporting environmental, nature conservation and climate action projects throughout the EU - could complement the funding of such activities.

Technical support and visibility for projects

The Investment Plan, or so-called Juncker Plan, encompassed far more than the provision of a guarantee to unlock additional investments through the EFSI. Circular economy projects may also benefit from the other elements of the Plan.

As for all sectors, project promoters can seek technical assistance through the European Investment Advisory Hub (EIAH). The Hub offers a single access point for advisory and technical assistance services to allow promoters get their projects off the ground.

The European Investment Project Portal – the #InvestEU Portal – is a platform to boost the visibility of investment opportunities, including those in environment and resource efficiency sector across Europe. The aim of the Portal is to bring together project promoters seeking investment with investors seeking projects.

Examples of EFSI projects in the environment and resource-efficiency sector

Lietuvos Energija Vilnius CHP, Lithuania

The European Investment Bank (EIB) is providing a €190 million loan agreement with Lietuvos Energija for the greenfield construction of new combined-heat-and-power (CHP) plant in Vilnius. The project is expected to lower municipal waste landfilling, decrease energy prices as well as cut emissions and improve the security of energy supply in the country. Hundreds of people will be employed during the construction phase, with a further 75 permanent jobs created for the running of the facilities.

Portugal water supply and sanitation

The EIB will lend €420 million to Águas de Portugal to boost investments in the water supply and wastewater sector across Portugal.

Tripla near-zero energy building project, Finland

The EIB is providing a €130 million loan in support of the construction of Tripla near-zero energy building project in Helsinki, Finland. Apart from commercial real estate, the project also comprises a completely refurbished railway station and large parking facilities. The other financiers supporting the project are the Nordic Investment Bank, Danske Bank and Handelsbanken.

Ginkgo Fund II, France and Belgium

The EIB is providing €30 million in financing to Ginkgo Fund 2, a fund which facilitates the sustainable redevelopment of substantially polluted sites, meeting the environmental, economic and social challenges of remediating brownfields in urban areas. Ginkgo Fund 2 is expected to create around 5 000 homes and support thousands of jobs. Ginkgo pays particular attention to the energy efficiency of the future buildings. It is firmly committed to a sustainable approach for the remediation of polluted sites and soil.