Financing the deployment of innovative technologies Fuel Cells and - - PowerPoint PPT Presentation

Financing the deployment of innovative technologies

Fuel Cells and Hydrogen Joint Undertaking Stakeholders’ Forum 2016 Brussels, November 23rd, 2016

European Investment Bank 1

The EIB: the EU bank

European Investment Bank 2

Investing in Europe’s growth

• Natural financing partner for

the EU institutions since 1958

• EUR 78bn lending in 2015

(signature)

• Around 90% of lending is

within the EU

• Shareholders: 28 EU Member

States

• Largest multilateral borrower

and lender in the world

We focus on our key priorities

European Investment Bank 3

ENVIRONMENT

EUR 19.6bn

INFRASTRUCTURE

EUR 19.1bn

INNOVATION

EUR 18.7bn

SMEs

EUR 28.4bn

EIB Group (EIB and EIF)

EIB supports sound and sustainable projects furthering EU policy objectives

European Investment Bank 4

EIB lending for innovation is reaching a larger number of (smaller) projects

European Investment Bank 5

2.2 bn 5.1 bn 3.6 bn 6.2 bn 7.1 bn 10.7 bn 10.9 bn 10.2 bn 12.5 bn 18.3 bn 16.5 bn 10.4 bn 9.3 bn 15.6 bn 13.4 bn 16.1 bn 18 37 27 48 45 56 57 55 73 95 95 66 76 104 108 123 20 40 60 80 100 120 140 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total number of operations Total Lending volume (EUR m)

Total Lending in Innovation 2000-2015: EUR 168 bn

EIB supports FCH-technology projects

European Investment Bank 6

Development of

• catalysts / catalysed components

for FCH applications

• FCH technologies for domestic

heating

• FCH powertrain systems for

automotive applications

• FCH systems for decentralised

power generation and marine applications

Full Scale Technology Deployment R&D

Financial and / or technical advisory for potential deployment

• HRS network for FCEVs
• FCH bus system for regional

transport Typically corporate-level risk Corporate finance and standard loans Typically project-level risk Specific financial instruments Need for sound business case, project structure, far- end strategy Deployment of FCH-powered trolley bus pilot fleet for urban transport

Traditional lending instruments often inadequate also due to slow and uncertain market uptake and limited visibility

European Investment Bank Group 7

Uncertainties about market uptake (timing, scale) and long term commitments Weak business plan and uncertainty about expected cash flows Lack / delay of private-sector and manufacturers’ investments Slow market adoption, limited bankability and difficulty to mitigate risks appropriately

European Investment Bank

European Investment Advisory Hub

EIB financial and advisory instruments may support sound projects for the deployment of innovative technologies and FCH

European Investment Bank Group 8

LENDING BLENDING ADVISING Direct / Bank Intermediated Loans Structured Finance Equity Technical Assistance InnovFin – EU Finance for Innovators EFSI – European Fund for Strategic Investments Instruments Blending Other Sources of Investment

A clear regulatory framework and coordinated initiatives to aggregate demand and build-up the market will facilitate financing of FCH technologies deployment …

European Investment Bank 9

• Concerted decisions / policy choices
• Predictability over the long-term
• Lower regulatory / administrative barriers to

investments

• Coordination and aggregation of smaller projects

into larger ones

• Build-up of a larger market on a macro-regional

scale (critical mass, attract investments and financing)

• Aligned deployment in small markets / segments – e.g.

local/regional transport

• Coordinated

initiatives: public/private, across industries and technologies

Clear and coordinated regulatory framework Coordinated initiatives within and across countries to build scale of demand

… together with public funding visibility and commitment, targeted guarantee schemes, specific measures in public procurement and tenders

European Investment Bank 10

• Policy

support to innovative technologies delivering wider economic benefits to be consistently ‘”priced” (weightings/points) in public tenders / procurement

“Pricing” the external benefits (public procurement and public tenders) Visibility and long-term commitment on public funding & grants

• Visibility and commitment from “time 0” about

the total budget

• Development of public / EU guarantees to

address and mitigate the specific market risk associated with these technologies

Specific public guarantee schemes to address the market risk

Thank you for your attention!

www.eib.org info@eib.org

European Investment Bank 11