CDC RENOVATION ENERGETIQUE LOGEMENT SOCIAL

Loan for the energy retrofitting of social housing in France.

The operation concerns a framework loan up to EUR 1 billion to CDC to develop energy efficiency in residential buildings in France. The operation aims to support the thermal rehabilitation of about 75,000 social housing units. Under the proposed framework loan, CDC will on lend to social housing providers to develop deep energy renovation on the dwellings. It is expected that in many cases the deep renovations will achieve at least a reduction of 40% of the energy consumption after the renovation.

The proposed operation aims to finance energy efficiency projects in social housing in France, supporting EU and Bank's priority in the energy sector and the EIB's climate action objectives.

EE investments in buildings suffer from a chronic lack of investments. Through energy savings, energy efficiency projects will reduce carbon emissions and air pollution, deliver health benefits through improved air quality and contribute to the reduction of energy poverty. Therefore, the projects, which are expected to be located in cohesion regions up to 64%, will be fully aligned with EU's priorities and goals established in the European Green Deal and particularly in the Renovation Wave. In addition, the renovation of buildings plays a crucial role in job creation and post-pandemic recovery.

The Promoter will lend to French Social Housing Companies, who are deemed capable of implementing the sub-projects considering their overall experience and the application of proven technologies with limited technological risks.

The Bank's contribution relies essentially on the provision of fixed-rate financing under very long maturities to CDC. The needs of fixed-rate funding are indeed scarcely met by commercial banks.

The project relates to energy efficiency investments and can also include some building integrated renewable energy sources, and will be implemented in existing residential buildings without changing the already authorised scope and would therefore not require an environmental impact assessment (EIA) under the EIA Directive 2014/52/EU amending the EIA Directive 2011/92/EU. The Bank's services will nevertheless review during the project appraisal whether any of the investments could fall under Annex II of EIA Directive, as well as any other environmental aspects. The renovation works to be carried out in built-up urban areas are deemed to have minor negative environmental and social impacts during the renovation process and these impacts are expected to be mitigated by proper works management.

The Bank will require the Promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation, Directive 2014/24/EU as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.