ARKEA RENEWABLE ENERGY FL

The project consists of an intermediated loan in support of small to mid-sized renewable energy projects in France.

This project supports national and European targets related to renewable energy (RE) generation and it will hence contribute to EU energy objectives, notably security of energy supply and tackling climate change.

The project increases renewable energy generation capacity in France and contributes to national and EU 2030 climate objectives. The financing of this project is in line with the Bank's lending priority objectives on Renewable Energy as well as on Climate Action, Environmental Sustainability and Social and Economic Cohesion. The project produces electricity from low carbon sources, addressing the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and other air pollution (compared to fossil-fuel generation). As the project is expected to rely on revenues from the market, the project improves market efficiency and competition. Based on the pipeline provided, at least 80% of the projects (in terms of project investment costs) are located in cohesion priority regions (transition regions).

Overall, the project is supported by a good governance system and strong project management capabilities. Moreover, the project is expected to generate social benefits by generating clean and renewable power at a cost well below the fossil fuel-based alternatives. Through EIB's involvement, a positive signal will be sent to market participants in the RE sector in France, notably that, alongside direct support to large projects, the Bank may also support smaller investments through a bank intermediated approach.

This operation is intended to generate environmental benefits by supporting projects that help mitigate climate change. The Bank will assess the capacity and procedures of the financial intermediary to ensure compliance with national and European environmental and biodiversity regulations as well as their capacity to support the Bank's public disclosure policy, which aims to facilitate access by the public to environmentally-relevant information.

Final beneficiaries will be requested to comply with applicable national and EU Procurement Directives, as appropriate.