EIB’s Draft Environmental, Climate and Social Guideline for investments in Hydropower Development Luxembourg, 11 June 2018
Introduction to the Stakeholder Engagement Workshop Monica Scatasta, Head of Environmental, Climate and Social Policy, EIB European Investment Bank Group 2
Objectives of Today’s Workshop • Focus on the Guideline document and listen to your feedback To this end we will first: • Outline the rationale and process of development of the guidelines • Discuss the criteria and objectives • Highlight key new elements in EIB’s approach to hydropower • Listen to your feedback European Investment Bank Group 3
The EIB: the EU bank ‣ Shareholders: 28 EU Member States ‣ Natural financing partner for the EU institutions since 1958 ‣ Around 90% of lending is within the EU 4
The EIB at a glance • Largest multilateral lender and borrower : We raise our funds on the international capital markets We pass on favourable borrowing conditions to clients • Some 450 projects each year in over 160 countries • Headquartered in Luxembourg with 40 local offices • Around 3,200 staff: • Not only finance professionals, but also engineers, sector economists and socio-environmental experts • 60 years of experience in financing projects 5
EIB’s lending to Hydropower Lending volume 2007-17 EUR 5.56 bn • Hydropower projects part of the 383.7 renewable energy portfolio 322.5 financed by the EIB, in line with the 512.5 Bank’s Energy Lending Criteria 785.24 • Co-financed 92 hydro project operations since 2007 121.5 3083 198.8 89 70 • Over € 8.9bln loans since 1984 to 197 projects in 60 countries Russia, E.Europe,Sth. Caucasus Member states EFTA Potential candidate countries Candidate countries Mediterranean countries Latin America Asia (excl. Central Asia) ACP States European Investment Bank Group 6
The Guideline’s Rationale • Hydropower is largest source of renewable power worldwide: Significant benefits if implemented sustainably But potentially major and complex negative impacts • The Guideline sets out: EIB’s clear position on: Compliance with EU policies and alignment with their principles Definition of EIB expectations regarding project promoters’ responsibilities EIB’s ambition regarding hydropower sustainability, building on best practice in the EU A “toolkit” for EIB staff → quality and consistency of the analysis European Investment Bank Group 7
EIB’s project cycle • Financial • Economic Step 7 Step 2 • Social Step 1 • Environmental Repayment Appraisal Proposal • Technical assessment • EIB Management EIB Committee • Investment project Committee (for operations Step 3 cycle potentially benefiting Approval from EU guarantee under EFSI) • EIB Board of Step 6 Directors Monitoring and reporting Step 4 Finance contract is signed Signature Step 5 Disbursement Conditions for disbursement are checked 8
EIB’s E&S Framework • EIB Statement on Environmental and Social Principles and Standards • EIB Environmental and Social Standards • Internal procedures for their operationalization • Set of sector/issue specific guidance materia - “ Environmental, Climate and Social Guideline for investments in Hydropower Development” is part of this evolving set European Investment Bank Group 9
Structure workshop • Session 1 : Guideline Rationale and Process (1h) • Session 2 : Guideline content and specific aspects that are new in EIB’s approach (1.5h) • Wrap up : “What we heard” and Next Steps (15m) • Rules of engagement: • Focus on the Guideline document • State who you are • Short statements/questions so all can participate • Follow up in writing European Investment Bank Group 10
Thank you! Any Questions? European Investment Bank Group 11
Development of the Guideline Bartholomew Judd, Environmental Specialist, EIB European Investment Bank Group 12
Objectives of the Guideline • Provide direction to Bank staff, project promoters, government agencies and civil society on EIB’s approach to appraising and monitoring future hydropower projects. • Highlight areas of good practice and potential opportunities and risks related to hydropower projects. European Investment Bank Group 13
Approach of the Guideline • Focus on Risks and Opportunities in hydropower with the goal of identifying and disseminating best practice. • Defines approaches for any type of Hydropower Project. • Defines approaches for all EIB financial services, including on-lending to financial intermediaries. • Hydropower-specific requirements and recommendations: Within framework of EU legislation and EIB Standards . How and when to comply versus alignment. European Investment Bank Group 14
Development of the Guideline • Competitive tender contract awarded to ERM Q4 2016. • Targeted consultation: • Understand expectations and opinions. • Gather knowledge and experience. • Identify issues. • Policy context. • Stakeholder’s views on implementation. European Investment Bank Group 15
Consultation – External Stakeholders included: • EC : DG ENV; DG DEVCO; DG CLIMA; DG ENER • IFIs : World Bank; Inter-American Development Bank; Asian Development Bank; European Bank for Reconstruction and Development; AFD; KfW; • Promoters : EDF; eleQtra; • NGOs/Civil Society : The Nature Conservancy; WWF; BankWatch • Other : International Hydropower Association; International Institute for Environment and Development; 16
Overall Benefits of the Guideline • Clear, concise statement of EIB’s commitment to renewable energy, and development of sustainable hydropower - to set expectation • Emphasis on compliance with EU legislation and EIB Standards • Clearly defined requirements for project promoters that EIB will consider when approaching future hydropower projects • Description of how EIB will work with promoters and other stakeholders during appraisal and monitoring of hydropower investments • Collection of best practices and key references on approaches and methods, and discussion of how/when to apply 17
Thank you! Any Questions? European Investment Bank Group 18
Structure and Criteria of the Guideline Dr Eamonn Barrett Project Team Leader, ERM Ltd European Investment Bank Group 19
Structure of the Guideline • Introduction, including: Applicability. Policy Environment. • Technical Issues and Impacts (see later slide). • Monitoring Requirements. • Key References. 20
Environmental Issues and Impacts • Natural Habitat and Biodiversity Degradation and Loss. • Downstream Hydrology and Limnology (including Environmental Flows). • Reservoir Water Quality and Sedimentation, including Eutrophication. European Investment Bank Group 21
Social Issues and Impacts • Physical and Economic Displacement and Loss of Access. • Cultural Heritage. • Public Health, Safety and Security. • Ecosystem Services. European Investment Bank Group 22
Climate Resilience and GHG Emissions • Factoring Climate Change into Hydrological Assessment. • Assessing Potential Physical Risks. • Calculation of Reservoir GHG Emissions. 23
Strategic and Basin-wide Issues • Cumulative Basin-Level Impacts. • Potential Transboundary Impacts. • Strong Governance and Community Support. European Investment Bank Group 24
Reservoir and Dam Safety • Risks Associated with Infrastructure Failure. • Risks Associated With Dam Operation. 25
Monitoring Requirements • Regular reporting by the promoter on performance of the project’s ESMS. • Reporting to regulatory authorities. • Reports on contractor management. • Stakeholder engagement 26
Layout of the Guideline • 78 requirements & recommendations listed, across 6 key topics. 27
Thank you! Any Questions? European Investment Bank Group 28
Stakeholder Engagement Workshop – Key changes for the EIB Olivier Tricca, Power Engineer, EIB European Investment Bank Group 29
EIB engagement baseline • Transparent and comprehensive Requirement / Recommendation process for hydro projects • No discrimination based on power plant or dam size but on reservoir size and Degree of regulation. • Priority to economic site restoration over existing assets rehabilitation over new assets. • Stricter rules of EIB engagement for FI operations. European Investment Bank Group 30
Project development stage • Increased awareness of E&S inputs integration at site selection stage • Increased support to WFD principle application, strategic and system-based studies, outside EU • Promote sustainable and adaptive approach for water assessment (climate change, flood, environmental flow and associated facilities) European Investment Bank Group 31
Project Implementation stage • Higher participation from local community, women and vulnerable people in monitoring and benefit sharing mechanism • Increase support for higher public governance standards and independent committees review • Strong and transparent monitoring system (flow, gas emissions, sedimentation...) European Investment Bank Group 32
Thank you! Any Questions? European Investment Bank Group 33
Recommend
More recommend
