SNAM CLIMATE ACTION FL II

Promoter – Financial Intermediary

SNAM SPA

Location

• Italy

Description

The framework loan will support a pipeline of small to medium sized energy efficiency projects, mainly in public buildings and industry, to be implemented by SNAM group in Italy.

Additionality and Impact

As this operation focuses on energy efficiency ("EE") and buildings integrated renewables, the underlying investments will support the EU's and Bank's priority in the energy sector (energy efficiency and renewable energy) and the EIB's climate action objectives, as the whole operation (100%) will contribute to climate change mitigation objectives.

The implementation of the EE schemes financed under this operation will contribute to the achievement of Italy's 2021-2030 "National Energy Climate Plan" that envisages ambitious targets of carbon emissions' abatement. In turn, it supports the EU and national targets for EE and contributes to the security of energy supply and environmental objectives. The operation is fully aligned with the "EU Energy Performance of Building Directive - EU/2010/2031" as amended in 2018 and with the "Energy Efficiency Directive", as well as the "Green Deal Renovation Wave" and "REPowerEU".

In addition, the operation supports the Bank's mandate to the EU's regional policy as part of the schemes are expected to be in less developed regions (approximately 22%).

The operation meets an existing demand for energy efficient investments in Italy. The operation contributes to reduce the market failures linked to asymmetric information and principal/agent problem. As there is a chronic underinvestment in EE for buildings, the operation demonstrates how to scale up and industrialize this sector through aggregators such as energy service companies ("ESCOs") and utilities, complementing EIB's additionality to national EE incentives.

The Promoter is deemed to be capable of implementing the operation considering its overall experience. The operation is expected to be both financially and economically viable, with excellent economic rate of return ("ERR") and positive social broader benefit.

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. The EIB financial value added is even more tangible under the ongoing market instability and turmoil generated by current geopolitical situation.

Objectives

Through the renovation and energy performance guarantee of residential, healthcare, educational public and private buildings and renewable energy investments, aims to improve energy efficiency, the project will reduce carbon emissions and EU dependency from fossil fuels, decrease environmental impact and air pollution, deliver health benefits through improved air quality and positive social impact through job creation.

Sector(s)

• Industry - Construction

Proposed EIB finance (Approximate amount)

EUR 100 million

Total cost (Approximate amount)

EUR 134 million

Environmental aspects

The project is in line with the EIB's priority lending objectives for energy efficiency (EE) as for the Green Deal Renovation Wave and renewable energy (RE) as for REPowerEU and supports the Climate Action objective (100%). Given the scale, location and nature of the renovation sub-projects in built-up urban areas an environmental impact assessment (EIA), as defined under the EIA Directive 2014/52/EU, amending the 2011/92/EU, is normally not required. Some of the projects may fall under Annex II of the Directive Environmental Impact Assessment (EIA) Directive 2011/92/EU (amended by 2014/52/EU). In those cases, the competent authority needs to screen the projects and determine whether an Environmental Impact Assessment (EIA) is required or not. The project will be appraised and monitored in line with the EIB's policies, including the Environmental and Social Sustainability Framework.

Procurement

The sub-projects involving public buildings will fall under public procurement. The promoter has to ensure that contracts for the implementation of the projects are tendered in accordance with the relevant applicable EU procurement legislation.

Status

Signed - 28/06/2024