Briefing on the European Investment Bank’s new screening and assessment criteria for energy projects Ingrid Holmes (E3G) and Stephen Tindale (Centre for European Reform), 17 July 2013
The European Investment Bank’s new screening and assessment criteria for energy projects is welcomed as a significant step forward in moving the European Union to becoming a low carbon economy while generating sustainable growth and jobs. We recommend that Directors accept the proposals, with some adjustments. These are:
To accept the proposals to continue to support both mature and emerging renewable as a high priority. To strengthen the Energy Efficiency White list proposals to give specific mention to deeper retrofit programmes where they can be economically justified on the basis of avoided supply-side investments. To endorse the introduction of an Emissions Performance Standard but tighten the level to at least 450 gCO2/kWh and ideally 350 gCO2/kWh in the interests of longterm economic efficiency. To discard the island/isolated electricity system exemption on the grounds that this is not a necessary or effective way to achieving a broader European single market for energy. To discard the peaking plant exemption outright or alternatively tightening conditions to require applicants to demonstrate how the resources operational characteristics address the local or system requirements for flexible capabilities (e.g. ramping abilities, fast-start capability, on-off cycling) that enable reliable system operations in light of expected energy production from variable renewables. To discard the contribution to poverty alleviation exemption on the grounds that while poverty alleviation is a critical part of the EIB’s external action mandate, it is access to electricity (not to coal per se) that delivers growth and alleviates poverty.
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