EIB FUNDING FOR FLOOD RISK MANAGEMENT

Transcription

1 EIB FUNDING FOR FLOOD RISK MANAGEMENT Presentation by Christoph Gleitsmann Projects Directorate, European Investment Bank Thematic Workshop on the Implementation of the Directive 2007/60/EC on the Assessment and Management of Floods 1

2 Major river floods in Europe major floods since 1990; 165 major floods since 2000; Increase mainly due to change in land-use patterns, and better reporting Source: European Environmental Agency (EEA) 2

3 Direct Damage due to Floods in Europe Source: European Environmental Agency (EEA) Prague Metro, August

4 Potential Impacts of Climate Change Within this century, precipitation could increase by 5-20% in the North, and decrease 5-30% in the South; In large parts of Europe, an increase in occurrence and frequency of river floods is to be expected; Less snow cover in winter leads to decreased risk of spring floods; Around one third of EU population live within 50km of the coast, and 140,000km2 of land is within 1m of sea level; In these areas, economic damages could reach up to EUR 12-18bn p.a. by 2080 (high emission scenario); Further significant economic damages through a combination of water scarcity and droughts. Source: European Environmental Agency (EEA) and EC Peseta Project 4

5 EU Climate Change Adaptation Documents White Paper, April 2009: Adapting to climate change towards a European framework for action, that is based on a comprehensive public consultation following the 2007 Green Paper; Directive 2007/60/EC on the Assessment and Management of Flood Risks ; EC Communication Addressing the challenge of water scarcity and droughts, published July The revised Directive for the EU emission trading system post 2013 should foresee that at least 50% of the revenue generated from auctioning allowances should be used for adaptation in EU Member States and developing countries. Source: European Environmental Agency (EEA) 5

6 EIB s new Water Sector Lending Policy (1) Seven key areas of intervention: Integrated Water Resource Management Consolidation of Institutional Framework Adaptation to Climate Change Water efficiency Development of new water supply Wastewater and sanitation services Research & Innovation 6

7 EIB s new Water Sector Lending Policy (2) Main activities Water efficiency: Support investment & actions for efficiency on: i) use by consumers; ii) allocation of resources; iii) improve systems; iv) management of utilities (e.g. PPPs) Promote principle of cost recovery in line with WFD Support industries aiming at water footprint improvements. Adaptation to climate change: Adaptation complements mitigation as part of the EIB s Climate Change Strategy Request clients to consider climate change adaptation in project concept and design, Provide support with Technical Assistance grants 7

8 Financial Instruments and Support Loans for sovereign, sub-sovereign, and corporate clients; Long tenors and adequate grace periods; Funding of 50 (-75)% of total project cost; Co-funding with Commission, IFIs, commercial banks; Facilitation of PPP models; Strong link to JASPERS unit for advice on EC funding applications; Support to client throughout the project cycle. Loan due diligence on the basis of technical, financial, environmental, and social criteria. Special focus on cost recovery and sustainability. 8

9 Venice Flood Protection Major project to protect Venice lagoon from sea level rise; System of flexible gates that are operated with compressed air in case of floods; Implementation ongoing, total construction time 10 years ( ); Total costs EUR 4.7bn; EIB loan EUR 1.5bn. 9

10 Czech National Flood Prevention Strategy Legend: Schemes implemented by the River Boards Schemes implemented by Agricultural Water Management Authority, and State Forests Studies Approved by the Parliament in year 2000 Two phases: , and Increased protection for more than 800,000 people Flood risk mitigation for major agglomerations and key infrastructure Main responsibility: Ministry of Agriculture, five River Boards and Agricultural Water Management Authority Total costs of CZK 18.5bn (EUR 750m) EIB loans of EUR 360m 10

11 CZ Flood Risk Mitigation: Give Room to the River Postřelmov Moravičany Change of land use 11

12 EIB s Value Added Dialogue with implementing agencies Compliance check for EU Directives, including the new Floods Directive Agreement on technical, hydrological, economical and environmental criteria Environmental due diligence by independent Environmental Expert Scheme assessment and selection supported by Strategic Experts EIB is often consulted to facilitate project implementation 12

13 Conclusions EIB is pro-actively supporting the preparation and implementation of flood risk management projects, as part of its strategy for adaptation to climate change; It is advisable to involve the Bank at an early stage of the project cycle, so as to make use of technical assistance funding and structure the financing plan; Mobilisation of co-financing, including local funds is essential for project sustainability; EIB continues to facilitate transfer of knowledge and dissemination of best practice across Europe and beyond. 13

14 Thanks for your attention! 14