NIB’s climate lending facility fully deployed

NIB’s CLEERE facility has been essential in helping implement the climate changes policies of the member countries during the recession. The question of extending the facility figures high on the agenda, says Johnny Åkerholm, NIB President and CEO.

The Climate Change, Energy Efficiency and Renewable Energy lending facility, CLEERE, has been expended. The loans agreed under this facility late last year are expected to be disbursed during the first half of 2010.

Launched in early 2008 with a framework of EUR 1 billion, CLEERE rapidly became popular, and it helped NIB identify and finance projects in renewable energy and energy saving.

“While these activities are essential in order to mitigate climate change, they have not been easily financed in the wake of the financial crisis,” says Johnny Åkerholm, NIB President and CEO.

“As a result, NIB has been able to fill a gap by providing finance for the implementation of policy measures announced by the Bank’s member countries.”

Within the CLEERE framework, NIB financed 36 environmental projects, including the launch of the world’s largest offshore windmill farm Horns Rev II, a solar-grade silicon factory in Norway, the refurbishment of hydropower plants in Finland and Latvia, better energy efficiency of buildings in Lithuania, as well as many other actions.

Assessing CLEERE’s benefits for NIB and its customers, Mr Åkerholm, notes that facilities like CLEERE provide a clear message about the Bank’s intentions by identifying both the focus and the planned volumes.

He says that NIB will continue to assess how it can best support these efforts against climate change: “Given the success of the CLEERE facility as well as the accelerated efforts in our member countries to work against climate change, the question of extending the present facilities or creating new ones will no doubt figure high on the agenda.”

Investments in renewable energy require long-term policies

Mr Åkerholm highlights the long-term nature of investments in renewable energy sources and the need for long-term policies agreed upon at a global scale.

“Unfortunately, the climate summit in Copenhagen late last year did not provide firm guidance for future activities and it did not reduce investment risks in the way one could have hoped for,” he says.

Investments, unprofitable at present relative prices, can be incentivised through support schemes. “However, such schemes are typically fixed-term and/or they can be changed. Therefore a firm long-term view about targets and policies would be the most effective support for investments,” says the NIB President.