ABB RDI FOR SMART & SUSTAINABLE ELECTRIFICATION

The project concerns the promoter's investments in Research, Development and Innovation (RDI) within its electrification business area. In particular, it covers a wide range of products and applications that enable sustainable electrification. The related RDI activities will be carried out in the EU and, to a minor extent, in the EFTA countries over the period 2023-2026.

The aim is to develop, among others, enhanced and sustainable products for smart buildings and building automation, power distribution solutions, industrial components with a focus on energy management, installation products as well as associated services.

The Project will contribute to increasing the Promoter's knowledge and expertise in the field of sustainable electrification technologies. The products and services developed because of the Project target electrification solutions for buildings, industry and transport & infrastructure sectors that account for nearly three quarters of the global energy consumption, enabling energy saving for the Promoter's customers.

Due to the Promoter's close collaboration with customer industries and suppliers, the Project contributes to the diffusion of knowledge in these advanced technologies in Europe and bring about a positive stimulus to further R&D and innovation.

Through the financing of this Project, the Bank will support the development and adoption of advanced electrification technologies and services. It will, directly and indirectly, help preserve employment at existing plants in Europe, contributing to economic growth.

The financing addresses the market failure of imperfect competition, as it contributes to expanding the competitive space for new product technologies by providing access to RDI financing on favourable terms. The financing of the Project will support the Promoter in developing new products and technologies, investments characterised by the inherent uncertainty of results associated to the RDI activities.

The Project is eligible for the Bank's financing under the Research, Innovation and Digital (RID) Policy Priority Goal and a significant part of it qualifies under the EIB Climate Action and Environmental Sustainability policy objective. Part of the Project will be incurred in cohesion regions.

Part of the Project is in line with the principles of the REPowerEU plan, as it concerns green innovation RDI activities of a large corporate, targeting specifically energy efficiency solutions for buildings, applications for renewable energy as well as electrified transportation infrastructure. 

The Promoter's experienced management and proven R&D capabilities, its focus on R&D, innovation and sustainability, its technology edge and industrialisation capability will help implement a sound and sustainable Project, integrating positive environmental and social dimensions, contribute to address and mitigate market failures, and through its additionality, contribute to the Bank's policy objectives.

The proposed loan will contribute to the diversification of the borrower's financing sources and thus strengthen the overall financing position of the company, decreasing the borrower's exposure to volatile capital markets. The EIB loan's flexible features will support the promoter's cash flow and liquidity management. Furthermore, the Bank's significant support to the promoter will provide positive signalling effect to the capital markets, when increasingly more investment in research & development is needed to meet the ambitious goals within decarbonization of industry, transport & infrastructure and energy sectors.

The Bank's technical contribution and advice consists of the guidance provided to align the Project scope with policy objectives at Project origination and the monitoring requirements during Project implementation.

The project's activities are not listed in the annexes of the Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU. Therefore the project is not covered by the EIA Directive. The Bank's Services will review the environmental aspects of the project during the due diligence process.

The promoter's has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation then the European Commission will be duly informed, which will require the promoter to apply those rules.

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