mitigation under the EU guarantee could be restricted under the Climate Change
Mandate for countries that are deemed not to have committed themselves to meeting
appropriate climate change-related targets.
36 Naturally, it follows that such restrictions of eligibility would be grounded on then applicable economic and political
assessments, including matters of human rights.
37 It might be open to criticism as to
whether green shipping finance should necessarily be coloured by European ideology or morality; however, without going into the morality debate, it could at least be
said that the presence of the EU’s political and foreign policy agenda is not hidden.
The second criterion relates to the lack of finance elsewhere on reasonable
terms—a few observations might be ventured. First, what constitutes “reasonable
terms” must be both a commercial and policy matter. It is evident in the communications of the EIB that commercial reasons and policy considerations cannot be
entirely divorced from each other.
38 Secondly, the criterion for finance does not
require the project company or undertaking first to have exhausted other means of
financial support. The EIB is not, as such, a lender of last resort. The lack of finance
elsewhere is an assessment of the market rather than a requirement that the undertaking in question must make actual attempts first as a prerequisite. In recent times,
for example, the reference by the EIB to the stricter regulatory impositions on capital
adequacy and prudential supervision suggests a sensitivity to market challenges.
Thirdly, likewise it is argued that “sources” should be construed with reference to the
market.
As regards transport finance, the EIB published a paper in 2011 setting out its
lending policy and selection criteria.
39 At a general level, there are three policy
challenges for the EIB.
• the commitment to mobility of people and goods,
• commitment to the Trans-European Transport Network (TEN-T)
40 ; and,
• commitment to the gradual incorporation of climate change considerations into its
activities.
41
As regards the second and third commitments, there is immediate obvious a
concern about a tension between them. Promoting an integrated transport network
involving all modes of transport is likely to be perceived as increasing Europeans’
carbon footprint. On the contrary it could be argued that the two can be mutually
36 Recital 15.
37 Art 4 of the Decision.
38 See, for example, EIB “Transport Lending Policy” (2011) para 4 at p. 3 available at http://www.
eib.org/attachments/strategies/transport_lending_policy_en.pdf.
39 ibid.
40 The TEN-T project aim to: “establish and develop the key links and interconnections needed to
eliminate existing bottlenecks to mobility; fill in missing sections and complete the main routes -
especially their cross-border sections; cross natural barriers; and improve interoperability on major
routes”. As at 2014, €6.95 billion has been committed to 662 projects which covers all modes of
transport and transport infrastructure. (source: https://ec.europa.eu/inea/en/ten-t/ten-t-projects).
41 Supra n. [38] at p. 3.
142
J. Chuah
Mandate for countries that are deemed not to have committed themselves to meeting
appropriate climate change-related targets.
36 Naturally, it follows that such restrictions of eligibility would be grounded on then applicable economic and political
assessments, including matters of human rights.
37 It might be open to criticism as to
whether green shipping finance should necessarily be coloured by European ideology or morality; however, without going into the morality debate, it could at least be
said that the presence of the EU’s political and foreign policy agenda is not hidden.
The second criterion relates to the lack of finance elsewhere on reasonable
terms—a few observations might be ventured. First, what constitutes “reasonable
terms” must be both a commercial and policy matter. It is evident in the communications of the EIB that commercial reasons and policy considerations cannot be
entirely divorced from each other.
38 Secondly, the criterion for finance does not
require the project company or undertaking first to have exhausted other means of
financial support. The EIB is not, as such, a lender of last resort. The lack of finance
elsewhere is an assessment of the market rather than a requirement that the undertaking in question must make actual attempts first as a prerequisite. In recent times,
for example, the reference by the EIB to the stricter regulatory impositions on capital
adequacy and prudential supervision suggests a sensitivity to market challenges.
Thirdly, likewise it is argued that “sources” should be construed with reference to the
market.
As regards transport finance, the EIB published a paper in 2011 setting out its
lending policy and selection criteria.
39 At a general level, there are three policy
challenges for the EIB.
• the commitment to mobility of people and goods,
• commitment to the Trans-European Transport Network (TEN-T)
40 ; and,
• commitment to the gradual incorporation of climate change considerations into its
activities.
41
As regards the second and third commitments, there is immediate obvious a
concern about a tension between them. Promoting an integrated transport network
involving all modes of transport is likely to be perceived as increasing Europeans’
carbon footprint. On the contrary it could be argued that the two can be mutually
36 Recital 15.
37 Art 4 of the Decision.
38 See, for example, EIB “Transport Lending Policy” (2011) para 4 at p. 3 available at http://www.
eib.org/attachments/strategies/transport_lending_policy_en.pdf.
39 ibid.
40 The TEN-T project aim to: “establish and develop the key links and interconnections needed to
eliminate existing bottlenecks to mobility; fill in missing sections and complete the main routes -
especially their cross-border sections; cross natural barriers; and improve interoperability on major
routes”. As at 2014, €6.95 billion has been committed to 662 projects which covers all modes of
transport and transport infrastructure. (source: https://ec.europa.eu/inea/en/ten-t/ten-t-projects).
41 Supra n. [38] at p. 3.
142
J. Chuah