European Investment Bank Group 1

Diversifying Financing Instruments to Realise REDD+

2016 Global Landscapes Forum – The Investment CaseThe Royal Society – London, Monday 6th June 2016

Christopher Knowles

02/05/2023 European Investment Bank Group 2

EIB CABs – Strategy and Key Features

Financial Impact

Transparency and Accountability

• First green bond: EIB was the first issuer to introduce labeled green bond in 2007

• Scale: Largest Green Bond issuer to date (EUR 14.2bn)* and largest SSA Green Bond issuer 2016 ytd (EUR 2.9bn)*

• Liquidity: Largest Green Bond in EUR (3bn), liquid size in USD (1.5bn) and GBP (1.8bn)

• Green Bond curve in EUR: three references in 4-, 8-, and 11-yr tenors

• Exposure to EIB credit not projects: CABs pari passu with other EIB bonds (Triple A)

• No premium charged - priced like other EIB bonds of same size & maturity

• No refinancing: Project allocations are made only once upon disbursement

• Aligned with Green Bond Principles: clear reporting on alignment

• Clear sector focus: Projects in Renewable Energy and Energy Efficiency

• Quality: Project due diligence expertise, applying high EU standards

• Transparency: Detailed reporting on use of proceeds (Newsletter/Sustainability Report)

• Verification / audit: external audit of reporting on use of proceeds

• Reporting project impact + linking bonds to projects: Both launched in 2015

*As of 30 April 2016

EIB CABs - Projects

Non-EU represents EUR 878m(12.1% of total CAB allocations)

Country / region CAB allocation (EUR m)

Chile 17Dominican Republic 2DRC (Congo) 5Egypt 19Georgia 17Iceland 173India 54Israel 55Jordan 45Kenya 49Latin America 20Liberia 30Mexico 79Morocco 40Nicaragua 24Russian Federation 58South Africa 186Zambia 7

1,713m; 23.6%

737m; 10.2%

694m;9.6%

678m;9.3%

574m; 7.9%

488m; 6.7%

297m;4.1%

259m; 3.6%

251m; 3.5%

196m; 2.7%

154m; 2.1%

100m; 1.4%

79m; 1.1%

45m;0.6%

16m; 0.2%

60m; 0.8%

24m; 0.3%

Project allocations in EUR m

* As of June 2015

18m; 0.2%

104 projects in 41 countries within and outside of the EU*

Althelia achieves landscape protection by unlocking multiple value streams

• Medium-term performance based financing allowing to generate at the same time conservation and economical development;

• Bottom-up approach, leveraging on concrete, scalable activities;

• Multi-stakeholder involvement, from local communities to global supply chains.

Althelia Sustainable Land Use Funds

Illustrative Investment: Cocoa and Conservation of a National Park

Althelia Co-financiers(grants)

Conservation activities

CO2 emissions reductions

Cocoa Production

Capex and Opex over 8 years

Financing Pool$a + $b = $13 m

$b$a

Project$13 m

Carbon Revenues

$a VCU @ $b = $c

Cocoa Revenues

$x VCU @ $y = $z

• Social Impact• Biodiversity

Protection

Outcomes & Impacts:• $c + $z • $13 m Investment

02/05/2023 European Investment Bank Group 6

Nature Conservation Notes – The Structure

02/05/2023 European Investment Bank Group 7

More Information (please click on the pictures)

02/05/2023 European Investment Bank Group 8

For more information please contact:

Christopher KnowlesHeadClimate Change & EnvironmentOperations Directoratec.knowles@eib.org

European Investment Bank98, Boulevard Konrad Adenauer

L-2950 Luxembourg