EIB Supports Renewables Fund with EUR 75 Mln

The European Investment Bank (EIB) is providing equity-type financing of up to EUR 75 million to Copenhagen Infrastructure Partners (CIP) to finance Copenhagen Infrastructure II, an infrastructure fund that is investing in large energy-related projects such as offshore wind, biomass and transmission schemes.

The EIB said in a statement that the fund would primarily focus on renewable energy projects that generate energy with typically lower pollutant and climate-relevant emissions than conventional fossil fuel-based power plants.

The anticipated high share of offshore wind, biomass and transmission investments is expected to generate considerable employment (around 2500 – 4000 jobs) during the construction phase. It is also estimated that some 1000 jobs may be created during the project’s operation, a significant number of which will be highly-skilled jobs.

The EIB financing will be proposed for backing by the EU budget guarantee under the European Fund for Strategic Investments (EFSI). The aim of the EFSI is to maximise the impact of public resources by addressing market gaps and mobilising private investment in strategic projects through a range of financial instruments offered by the EIB Group.

Commenting on the funding, Jonathan Taylor, EIB Vice-President responsible for lending in Denmark, said that the EIB was proud to support this innovative fund, as it would contribute to the achievement of European targets for renewable energy generation and CO2 emissions reduction, while at the same time creating a significant number of jobs. “This first transaction in Denmark under the Investment Plan for Europe shows that the EIB is honouring its commitment to roll out the initiative even before the EFSI is officially launched,” he said.

EIB highlighted that it has played a leading role in supporting the offshore wind sector on the debt side in recent years, and it is now also embarking on the equity side to provide further support to the development of this large-scale and strategic infrastructure for Europe.