sufficient cash-flows to support the repayment of the loan. At last, a sound circular
project is run by a competent, experienced promoter able to successfully implement
a challenging CE project.
As explained by Mr. Smits, EIB loan officer, the EIB can either lend directly to
individual borrowers/projects or, in the case of smaller borrowers/projects, through
financial intermediaries. Direct financing is typically made available in the form of
senior or subordinated loans for larger projects. The EIB can provide direct
financing where the project investment cost is of a minimum of EUR 15 m. In such
cases, the EIB carries its own due diligence of the borrower and the project. In all
cases the EIB finances a maximum 50% of the project investment cost.
In the case of smaller projects or promoters (SMEs and MidCaps), the EIB
provides intermediated financing via local banks, investment platforms and funds in
the form of loans or guarantees. For instance, the EIB has provided several credit
lines to its Dutch partner bank Rabobank, which the bank on-lends to ‘eligible’
SMEs and Mid-Caps at a reduced interest rate. A recent example is the Rabobank
Impact Loan for SMEs and MidCaps III with a total credit line of EUR 200 m. The
impact loan includes circular businesses as ‘eligible’ borrowers. In case of intermediated financing, the EIB establishes the eligibility criteria for projects and
promoters to be financed, while the due diligence of the final borrower/project is the
responsibility of the intermediary financing institution.
4 Q&A and Future Perspectives
The workshop concluded with a Q&A session. The opening question enquired to
what extent the banking sector considers companies’ environmental risk profile. As
explained by Ms. Goovaerts, EIB specialist on innovative industries, environmental
and social impact is always taken into consideration, and compliance with relevant
EU legislation is verified. An adjustment of risk assessment methodologies to
reflect the unique character of CE projects is something the EIB is currently looking
into. In a similar vein, Mr. Piechocki, sustainable business specialist at Rabobank,
confirmed that supply chain policies and sustainability risk are always assessed. The
bank also assists the clients in finding solutions, in case a risk has been identified.
The next question was directed towards the European Commission representative. Ms. Žutelija, CE policy officer, was asked about the future perspective to
develop a set of environmental indicators harmonised at EU level to provide
environmental profile of a company including its supply chain. Ms. Žutelija
reconfirmed that a harmonised approach at EU level is needed and pointed out that
the EC continues working to set up a harmonised system. In this context, the EC is
currently finalising the pilot phase of the Product and Organisation Environmental
Footprint life-cycle based methodology (PEF and OEF), and is considering future
policy options related to measuring the environmental performance of products and
organisations throughout their lifecycle.
Financing Innovation and Circular …
431
project is run by a competent, experienced promoter able to successfully implement
a challenging CE project.
As explained by Mr. Smits, EIB loan officer, the EIB can either lend directly to
individual borrowers/projects or, in the case of smaller borrowers/projects, through
financial intermediaries. Direct financing is typically made available in the form of
senior or subordinated loans for larger projects. The EIB can provide direct
financing where the project investment cost is of a minimum of EUR 15 m. In such
cases, the EIB carries its own due diligence of the borrower and the project. In all
cases the EIB finances a maximum 50% of the project investment cost.
In the case of smaller projects or promoters (SMEs and MidCaps), the EIB
provides intermediated financing via local banks, investment platforms and funds in
the form of loans or guarantees. For instance, the EIB has provided several credit
lines to its Dutch partner bank Rabobank, which the bank on-lends to ‘eligible’
SMEs and Mid-Caps at a reduced interest rate. A recent example is the Rabobank
Impact Loan for SMEs and MidCaps III with a total credit line of EUR 200 m. The
impact loan includes circular businesses as ‘eligible’ borrowers. In case of intermediated financing, the EIB establishes the eligibility criteria for projects and
promoters to be financed, while the due diligence of the final borrower/project is the
responsibility of the intermediary financing institution.
4 Q&A and Future Perspectives
The workshop concluded with a Q&A session. The opening question enquired to
what extent the banking sector considers companies’ environmental risk profile. As
explained by Ms. Goovaerts, EIB specialist on innovative industries, environmental
and social impact is always taken into consideration, and compliance with relevant
EU legislation is verified. An adjustment of risk assessment methodologies to
reflect the unique character of CE projects is something the EIB is currently looking
into. In a similar vein, Mr. Piechocki, sustainable business specialist at Rabobank,
confirmed that supply chain policies and sustainability risk are always assessed. The
bank also assists the clients in finding solutions, in case a risk has been identified.
The next question was directed towards the European Commission representative. Ms. Žutelija, CE policy officer, was asked about the future perspective to
develop a set of environmental indicators harmonised at EU level to provide
environmental profile of a company including its supply chain. Ms. Žutelija
reconfirmed that a harmonised approach at EU level is needed and pointed out that
the EC continues working to set up a harmonised system. In this context, the EC is
currently finalising the pilot phase of the Product and Organisation Environmental
Footprint life-cycle based methodology (PEF and OEF), and is considering future
policy options related to measuring the environmental performance of products and
organisations throughout their lifecycle.
Financing Innovation and Circular …
431