EIB’s Draft Environmental, Climate and Social Guideline ... · • Focus on the Guideline...
Transcript of EIB’s Draft Environmental, Climate and Social Guideline ... · • Focus on the Guideline...
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EIB’s Draft Environmental, Climate and Social Guideline for
investments in Hydropower Development
Luxembourg, 11 June 2018
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Introduction to the Stakeholder
Engagement Workshop
Monica Scatasta, Head of Environmental,
Climate and Social Policy, EIB
European Investment Bank Group 2
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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
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The EIB: the EU bank
4
‣ Shareholders: 28 EU Member States
‣ Natural financingpartner for the EU institutions since1958
‣ Around 90% of lending is within the EU
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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
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EIB’s lending to Hydropower
• Hydropower projects part of the
renewable energy portfolio
financed by the EIB, in line with the
Bank’s Energy Lending Criteria
• Co-financed 92 hydro project
operations since 2007
• Over € 8.9bln loans since 1984 to
197 projects in 60 countries
European Investment Bank Group 6
322.5
3083
70
89
198.8
121.5
785.24
512.5
383.7
Lending volume 2007-17EUR 5.56 bn
Russia, E.Europe,Sth. Caucasus Member states
EFTA Potential candidate countries
Candidate countries Mediterranean countries
Latin America Asia (excl. Central Asia)
ACP States
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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
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EIB’s project cycle
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EIBprojectcycle
Step 1 Proposal
Step 2 Appraisal
Step 3 Approval
Step 4Signature
Step 5Disbursement
Step 6 Monitoring
and
reporting
Step 7 Repayment
• Financial
• Economic
• Social
• Environmental• Technical
assessment
• EIB Management Committee
• Investment Committee(for operations potentially benefiting from EU guarantee under EFSI)
• EIB Board of Directors
Finance contract is signed
Conditions for disbursement are
checked
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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
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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
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Thank you!
Any Questions?
European Investment Bank Group 11
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Development of the Guideline
Bartholomew Judd, Environmental
Specialist, EIB
European Investment Bank Group 12
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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
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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
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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
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Consultation – External Stakeholders included:
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• 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;
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Overall Benefits of the Guideline
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• 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
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Thank you!
Any Questions?
European Investment Bank Group 18
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Structure and Criteria of the
Guideline
Dr Eamonn BarrettProject Team Leader, ERM Ltd
European Investment Bank Group 19
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Structure of the Guideline
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• Introduction, including:
Applicability.
Policy Environment.
• Technical Issues and
Impacts (see later slide).
• Monitoring Requirements.
• Key References.
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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
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Social Issues and Impacts
European Investment Bank Group 22
• Physical and Economic
Displacement and Loss
of Access.
• Cultural Heritage.
• Public Health, Safety and
Security.
• Ecosystem Services.
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Climate Resilience and GHG Emissions
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• Factoring Climate
Change into Hydrological
Assessment.
• Assessing Potential
Physical Risks.
• Calculation of Reservoir
GHG Emissions.
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Strategic and Basin-wide Issues
• Cumulative Basin-Level
Impacts.
• Potential Transboundary
Impacts.
• Strong Governance and
Community Support.
European Investment Bank Group 24
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Reservoir and Dam Safety
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• Risks Associated with
Infrastructure Failure.
• Risks Associated With
Dam Operation.
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Monitoring Requirements
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• Regular reporting by the
promoter on performance
of the project’s ESMS.
• Reporting to regulatory
authorities.
• Reports on contractor
management.
• Stakeholder engagement
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Layout of the Guideline
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• 78 requirements & recommendations listed,
across 6 key topics.
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Thank you!
Any Questions?
European Investment Bank Group 28
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Stakeholder Engagement Workshop –
Key changes for the EIB
Olivier Tricca, Power Engineer, EIB
European Investment Bank Group 29
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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
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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
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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
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Thank you!
Any Questions?
European Investment Bank Group 33
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Next Steps
Bartholomew Judd, Environmental
Specialist, EIB
European Investment Bank Group 34
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Next Steps
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• Collate comments from stakeholder engagement
process – July 2018.
• Review and update final draft based on stakeholder
comments.
• Publish Final Guideline Q4 2018.
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Thank you!
Any Questions?
European Investment Bank Group 36