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he European Investment Bank stronglysupports the goal of sustainable, low-carbon, climate-resilient growth, andworks closely with the EuropeanCommissioner for Climate Action, Connie Hedegaard,and her colleagues to achieve this. Strong and effectiveaction to limit global warming is urgently needed.Our corporate objectives, principles and standardsclosely follow EU and international climate policydevelopments. CO2emission reduction is incorporatedin sector lending policies and practices. We assess thecarbon footprint of projects and screen for climaterisks to identify potential for carbon credits. Projectsalso benefit from our in-house technical expertise toencourage best practice, provide policy guidance andensure that borrowers can draw on our know-howthrough technical assistance. ENGAGEMENT AT ANUNPRECEDENTED SCALEIn 2009, the European Investment Bank's dedicatedclimate action amounted to over EUR 17 billion ofloans for climate change mitigation, reduction of CO2emissions, and adaptation that increasesresilience to climatic uncertainty. We achieved ahigher engagement in climate change mitigation andadaptation projects in 2010: EUR 19 billion,representing an impressive 30 per cent of all lending. The EIB has provided nearly EUR 3 billion to supportonshore wind projects inside and outside the EU.Lending for emerging technologies in off-shore windand solar, both photovoltaic and concentrated solarpower, has substantially increased. We further wish to play a constructive role in supporting secondgeneration biofuels, carbon capture and storage, and marine technologies. We cannot say how fast costswill drop, or which technologies will be mostsuccessful in the end but there is a special role for usto give early adopters a helping hand, for thesubsequent benefit of everyone.SCALING UP LENDING FORRENEWABLE ENERGY AND ENERGYEFFICIENCYRenewable energy technologies - wind turbines, solarenergy parks - look great in pictures and are the mostvisible business, although they represent only part ofour climate action lending. We work with cities andregions to improve the energy efficiency of buildingsand public infrastructure (transport, public lighting).We are in partnership with the European Commission toprovide necessary technical assistance - needed inEurope just as much as elsewhere. Energy efficiencyprojects may not make the best photographs, butenergy efficiency is recognised as the most costeffective way of reducing greenhouse gas emissions.Our energy efficiency lending reached EUR 1.5 billionin 2009, and we are determined to do more in this area.CARBON CAPTURE AND STORAGEIt is clear that carbon capture and storage is anemerging technology that needs to be proven atcommercial scale. I would like to mention that theEuropean Investment Bank's close co-operation withthe European Commission on a new programme tosupport demonstration plants in the areas of carboncapture and storage, using funding provided by theEuropean Parliament from the New Entrants ReserveEIB: DELIVERING LENDINGFOR CLIMATE ACTION070MOBILISING FINANCEPHILIPPE MAYSTADT, PRESIDENT, EUROPEAN INVESTMENT BANK (EIB)TPhoto: EIB

MOBILISING FINANCE071Below:An EIB- financedoffshore energy projectof the Europe's carbon trading system. This will be alarge and much needed programme over the next fewyears to develop this sector. PIONEERING CLIMATE ADAPTATIONClimate change may increase the challenge of projectsin risk sectors, such as water initiatives in coastal areas or threatened areas, including the Sahel region.Pure adaptation projects pose particular financingproblems as they do not normally generate revenue.Therefore we have to make use of blended EU andinternational concessional finance in conjunction with EIB loans and guarantees. We can expect thiskind of project to pick up rapidly following the pledgesto fast-start finance coming out of the CopenhagenAccord. The European Investment Bank is ready tosupport more effective climate action throughenhanced emphasis upon financing research,development and innovation in new technologies that can combat climate change in a smart way. nABOUT THE AUTHORPhilippe Maystadt is the President of the EuropeanInvestment Bank. His career has included various keyposts within the Belgian Government over a periodspanning almost twenty years. Mr Maystadt wasMinister of Finance for a duration of ten years (1988-1998) and Chairman of the MFC of the InternationalMonetary Fund for five years (1993-1998).He has authored numerous studies and publicationsin the field of economic and financial law, and hasalso been a Professor at the Faculty of Law of theCatholic University of Louvain. He chaired severalhigh-level committees in European and internationalfinancial organisations before being appointed asPresident of the European Investment Bank on 1 January 2000.