ENEL ITALIA CLIMATE ACTION FL II

The project consists in a framework loan to support a pipeline of small to medium size renewable energy and energy efficiency projects to be developed by Enel group in Italy.

The aim is to support renewable energy and energy efficiency investments in Italy, contributing to the achievement of renewable energy, energy efficiency and decarbonisation targets in Italy and in the European Union. In addition, the project will deliver health benefits through improved air quality and positive social impact through job creation.

The operation consists of a framework loan ("FL") to support small to medium sized renewable energy ("RE") and energy efficiency ("EE") schemes to be developed by the ENEL group in Italy over the next three years. The EIB contribution will support ENEL to accelerate the implementation of such investments, hence supporting the Bank's priority in the energy sector and climate action objectives. This is crucial to achieve both national and EU 2030 climate objectives. As ca. 34% of the investments are located in EIB Cohesion Priority Regions, the Bank will also contribute to economic and social cohesion in rural areas with unemployment rates above the EU average and scarce employment opportunities. This operation addresses the market failures linked to RE and EE, reducing carbon emissions and air pollution. The Project is fully aligned with the EU's priorities and goals established in the European Green Deal (particularly in the "Renovation Wave" for EE). In addition, after the invasion of Ukraine, the European Commission ("EC") has adopted the REPowerEU and "EU Save Energy Communication", to accelerate the EU's clean energy transition and increase Europe's energy independence from unreliable suppliers and volatile fossil fuels, and reduce the dependence on Russian fossil fuels to zero by 2030. EE and RE are core elements of the REPowerEU plan. It will foster economic growth and qualified employment in the green sectors. The Project will also contribute to improved energy market efficiency and market integration. In terms of project results, the project is expected to have an 'excellent' rated economic return and broader social benefit. The Project is supported by adequate governance and capabilities of the Promoter. The EIB support to this operation provides the Promoter with a substantial financial value added as well as higher flexibility compared to available market alternatives.

This operation aims at generating environmental benefits by supporting projects that help mitigate climate change. The project is in line with the Bank's priority lending objectives for renewable energy (RE) and energy efficiency (EE), and supports Climate Action and Environmental Sustainability objectives (100%).

No procurement issues identified.