REPORT on the proposal for a decision of the European Parliament and of the Council amending Decision No 466/2014/EU granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union

31.3.2017 - (COM(2016)0583 – C8‑0376/2016 – 2016/0275(COD)) - ***I

Committee on Budgets
Rapporteur: Eider Gardiazabal Rubial
Rapporteur for the opinion (*):
Nirj Deva, Committee on Development
(*) Associated committee – Rule 54 of the Rules of Procedure

Errata/Addenda

• ERR01 (PDF - 236 KB)
• ERR01 (DOC - 48 KB)

Amendments

• 001-063 (PDF - 194 KB)
• 001-063 (DOC - 47 KB)
• 064-064 (PDF - 415 KB)
• 064-064 (DOC - 50 KB)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a decision of the European Parliament and of the Council amending Decision No 466/2014/EU granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union

(COM(2016)0583 – C8‑0376/2016 – 2016/0275(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2016)0583),

–  having regard to Article 294(2) and Articles 209 and 212 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C8‑0376/2016),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the report from the Commission to the European Parliament and the Council on the mid-term review of the application of the Decision N° 466/2014/EU as regards the EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union (COM(2016)0584),

–  having regard to Rule 59 of its Rules of Procedure,

–  having regard to the report of the Committee on Budgets and the opinions of the Committee on Development, the Committee on Foreign Affairs, the Committee on International Trade and the Committee on the Environment, Public Health and Food Safety (A8-0135/2017),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment     1 Proposal for a decision Recital 1
Text proposed by the Commission	Amendment
(1)  The international community faces an unprecedented refugee crisis which requires solidarity, efficient mobilisation of financial resources and the need to confront and surmount the existing challenges in a concerted manner. All actors need to work together to apply sustained, medium and long-term policies and an efficient use of existing processes and programmes in order to support initiatives which contribute to addressing root causes of migration.	(1)  The international community faces an unprecedented migration and refugee crisis which requires solidarity, efficient mobilisation of financial resources and the need to confront and surmount the existing challenges in a concerted manner. All actors need to work together to apply sustained, medium and long-term policies and an efficient use of existing programmes in order to engineer and support initiatives, which contribute to the Sustainable Development Goals (SDGs) and to addressing root causes of migratory pressures stemming from poverty, inequality, demographic growth, lack of employment and economic opportunities, climate change and the long-term consequences of forced displacement.
Amendment     2 Proposal for a decision Recital 1 a (new)
Text proposed by the Commission	Amendment
	(1 a)  All attempts to link development finance with border control, management of migratory flows or readmission agreements should be avoided.
Amendment    3 Proposal for a decision Recital 2
Text proposed by the Commission	Amendment
(2)  A new results-oriented partnership framework with third countries which takes account of all Union policies and instruments should be developed. As part of that new partnership framework, the External Investment Plan should be established in order to support investments in regions outside the Union, while contributing to the achievement of the sustainable development goal. It should also fulfil the objectives of the 2030 Agenda for Sustainable Development and the objectives pursued by the other financing instruments for external action.	(2)  A new results-oriented partnership framework with third countries which takes account of all Union policies and instruments should be developed. As part of that new partnership framework, the External Investment Plan should be established in order to support investments in regions outside the Union, while contributing to the achievement of the sustainable development goal. It should also fulfil the objectives of the 2030 Agenda for Sustainable Development, the Paris Agreement adopted under the United Nations Framework Convention on Climate Change and the objectives pursued by the other financing instruments for external action.
Justification
With the Paris Climate Agreement, governments agreed to limit global warming to well below 2°C above pre-industrial levels and therefore to undertake rapid reductions of GHG emissions with the best available techniques. They also committed to support developing countries in their effort toward climate change adaptation.
Amendment     4 Proposal for a decision Recital 4
Text proposed by the Commission	Amendment
(4)  A key component of the EIB Resilience Initiative is the expansion, in both quantitative and qualitative terms, of the EIB External Lending Mandate (ELM). This should enable the EIB to rapidly contribute to the EIP’s objectives, in particular by providing additional financing to private-sector beneficiaries.	(4)  A key component of the EIB Resilience Initiative is the expansion, in both quantitative and qualitative terms, of the EIB External Lending Mandate (ELM). This should enable the EIB to rapidly contribute to the EIP’s objectives, in particular by providing additional financing to private-sector beneficiaries in order to boost long-term investment.
Amendment     5 Proposal for a decision Recital 9
Text proposed by the Commission	Amendment
(9)  In order to allow the ELM to respond to potential upcoming challenges and Union priorities, as well as to provide a strategic response addressing root causes of migration, the maximum ceiling for the EIB financing operations under the EU guarantee should be increased to EUR 32 300 000 000 by releasing the optional additional amount of EUR 3 000 000 000. Under the general mandate, the amount of EUR 1 400 000 000 should be earmarked for projects in the public sector directed to refugees and host communities in crisis affected areas.	(9)  In order to allow the ELM to respond to potential upcoming challenges and Union priorities, as well as to provide a strategic response addressing root causes of migratory pressures stemming from poverty, inequality, demographic growth, lack of employment and economic opportunities, as well as climate change, the maximum ceiling for the EIB financing operations under the EU guarantee should be increased to EUR 38 470 000 000. Under the general mandate, the amount of EUR 1 400 000 000 should be earmarked for projects in the public sector directed towards the development of economic and social infrastructure in partner countries, transit and host communities, with a focus on job creation and sustainability.
Amendment     6 Proposal for a decision Recital 9 a (new)
Text proposed by the Commission	Amendment
	(9 a)  While addressing the root causes of the migration and refugee crisis is of paramount importance, that should not come at the cost of policies in other areas of key strategic priority as outlined in the EU Global Strategy.
Amendment    7 Proposal for a decision Recital 10
Text proposed by the Commission	Amendment
(10)  Under the new private sector lending mandate, the maximum amount of EUR 2 300 000 000 should be dedicated to projects addressing root causes of migration within the maximum increased ceiling and should benefit from the Comprehensive Guarantee by the Union.	(10)  Under the new private sector lending mandate, the maximum amount of EUR 2 300 000 000 should be dedicated to projects addressing root causes of migration and contributing to the long-term economic resilience of refugees, migrants, host and transit communities, within the maximum increased ceiling and should benefit from the Comprehensive Guarantee by the Union.
Amendment     8 Proposal for a decision Recital 10 a (new)
Text proposed by the Commission	Amendment
	(10 a)  As one of the EIB's main objectives under the ELM, support for micro, small and medium-sized enterprises (MSMEs) and local private sector development requires a concerted effort for EIB operations to be focused on improving MSMEs' access to finance and credit, providing technical assistance, promoting entrepreneurship and ensuring the adequate provision of financial services to households and firms, to enable MSMEs to make an easier transition from the volatile informal economy to the formal sector. EIB financing operations should also seek to strongly support small investment projects run by MSMEs, further facilitating the internationalisation of MSMEs, especially in remote rural areas and in particular in the field of drinking water treatment, wastewater disposal and renewable energy.
Amendment     9 Proposal for a decision Recital 11
Text proposed by the Commission	Amendment
(11)  Addressing root causes of migration should be added as a new objective of the mandate.	(11)  The long-term economic resilience of refugees, migrants, host and transit communities as a strategic response to addressing root causes of migration including, but not limited to, poverty, inequality, demographic growth, lack of employment and economic opportunities, and climate change, should be added as a new objective of the mandate; projects financed under the new objective should, in principle, fulfil the criteria for Official Development Assistance (ODA) established by the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development and should be in compliance with Article 208 of the Treaty on the Functioning of the European Union and United Nations Guiding Principles on Business and Human Rights.
Amendment     10 Proposal for a decision Recital 13
Text proposed by the Commission	Amendment
(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change4 , the EIB should aim to sustain the current high level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020.	(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change4 , the EIB should aim to increase the current high level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020, in accordance with the commitment taken in its climate strategy. The EIB should take into account the the European Council conclusions of 22 May 2013 on phasing out environmentally or economically harmful subsidies, including those for fossil fuels.
_________________	_________________
4 Council Decision (EU) 2016/590 of 11 April 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 103, 19.4.2016, p. 1).	4 Council Decision (EU) 2016/590 of 11 April 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 103, 19.4.2016, p. 1).
Justification
In its climate strategy adopted at the end of 2015, the EIB took the commitment to raise its level of climate action projects in developing countries up to 35% by the end of 2020. This announcement should be reflected in its External Mandate. Likewise, conclusions of the European Council of 22 May 2013 should be fully reflected in Europe's external lending activities.
Amendment     11 Proposal for a decision Recital 15
Text proposed by the Commission	Amendment
(15)  The EIB should develop and implement a set of indicators in its Results Measurement framework for projects in the public sector and in the private sector directed to refugees and host communities. Therefore, an assessment of the contribution of EIB financing operations addressing root causes of migration should be included in the Commission's annual reporting to the European Parliament and to the Council on EIB financing operations.	(15)  The EIB should develop and implement a set of indicators in its Results Measurement framework for projects in the public sector and in the private sector addressing the root causes of migration and the long-term economic resilience of refugees, migrants, host and transit communities. Therefore, an assessment of the contribution of EIB financing operations towards these objectives, notably contribution to SDGs, the involvement of local civil society, and the alignment with Union external policy priorities and budget priorities should be included in the Commission's annual reporting to the European Parliament and to the Council on EIB financing operations. The EIB should take all necessary steps to consolidate its accountability to the European Parliament, through transparency and access to information, by publishing the results, evaluations and impact appraisals of projects on a systematic basis via the Results Measurement Framework.
Amendment    12 Proposal for a decision Recital 15 a (new)
Text proposed by the Commission	Amendment
	(15 a)  Greater visibility and transparency of EIB operations under the ELM should be ensured, in particular with regard to sub-projects financed through financial intermediaries, improving access to information for the Union’s institutions and for the general public.
Amendment     13 Proposal for a decision Recital 16
Text proposed by the Commission	Amendment
(16)  Only where it concerns the need to address urgencies and crisis situations that could arise within the mandate period and which are recognised as Union external policy priorities, the ceiling for reallocation between the regions by the EIB in the course of the mandate should be increased from 10 % to 20 %. The private sector mandate of EUR 2 300 000 000 and the amount of EUR 1 400 000 000 dedicated to public sector projects cannot be reallocated because its purpose is to address root causes of migration.	(16)  Only where it concerns the need to address urgencies and crisis situations that could arise within the mandate period and which are recognised as Union external policy priorities, the ceiling for reallocation between the regions by the EIB in the course of the mandate should be increased from 10 % to 20 %. The EIB should notify the European Parliament of any reallocation decision by providing a justification report and an impact assessment. The private sector mandate of EUR 2 300 000 000 and the amount of EUR 1 400 000 000 dedicated to public sector projects cannot be reallocated because its purpose is to address root causes of migration and the needs of refugees, migrants, transit and host communities .
Amendment     14 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 1 – subparagraph 2 – point a
Text proposed by the Commission Amendment (a)  a maximum amount of EUR 30 000 000 000 under a general mandate, of which an amount of up to EUR 1 400 000 000 is earmarked for projects in the public sector directed to refugees and host communities; (a)  a maximum amount of EUR 36 170 000 000 under a general mandate, of which an amount of up to EUR 1 400 000 000 is earmarked for projects in the public sector directed to addressing the root causes of migration and the needs of refugees, migrants, transit and host communities;
Amendment     15 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 1 – subparagraph 2 – point b
Text proposed by the Commission Amendment (b)  a maximum amount of EUR 2 300 000 000 under a private sector lending mandate for projects addressing root causes of migration. (b)  a maximum amount of EUR 2 300 000 000 under a private sector lending mandate for projects addressing root causes of migration and the needs of refugees, migrants, transit and host communities.
Amendment    16 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 2
Text proposed by the Commission Amendment 2.  The maximum amounts under the general mandate and the private sector lending mandate referred to in paragraph 1 shall be broken down into regional ceilings and sub-ceilings as laid down in Annex I. Within the regional ceilings, the EIB shall progressively ensure a balanced country distribution within the regions covered by the EU guarantee; 2.  The maximum amounts under the general mandate and the private sector lending mandate referred to in paragraph 1 shall be broken down into regional ceilings and sub-ceilings as laid down in Annex I. Within the regional ceilings, the EIB shall ensure an adequate country distribution within the regions covered by the EU guarantee, in line with Union external policy priorities which shall be reflected in the regional technical operational guidelines referred to in Article 5;
Amendment    17 Proposal for a decision Article 1 – paragraph 1 – point 2 – point a Decision No 466/2014/EU Article 3 – paragraph 1 – point d
Text proposed by the Commission Amendment (d)  strategic response to addressing root causes of migration; (d)  the long-term economic resilience of refugees, migrants, host and transit communities as a strategic response to addressing root causes of migration including, but not limited to, poverty, inequality, demographic growth, lack of employment and economic opportunities, and climate change;
Amendment    18 Proposal for a decision Article 1 – paragraph 1 – point 2 – point a a (new) Decision No 466/2014/EU Article 3 – paragraph 4
Present text Amendment   (a a)  In Article 3, paragraph 4 is replaced by the following: "4.   In developing countries, as defined in the Organisation for Economic Cooperation and Development list of official development assistance recipients, the EIB financing operations shall contribute, in accordance with Articles 208 and 209 TFEU, indirectly to the objectives of the Union development cooperation policy, such as reducing poverty through inclusive growth and sustainable economy, environmental and social development." "4.   In developing countries, as defined in the Organisation for Economic Cooperation and Development list of official development assistance recipients, the EIB financing operations shall focus, in accordance with Articles 208 and 209 TFEU, on the objectives of the Union development cooperation policy, in particular towards reducing poverty through inclusive growth and sustainable economic, environmental and social development."
(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02014D0466-20160926&qid=1486646836381&from=FR)
Amendment    19 Proposal for a decision Article 1 – paragraph 1 – point 2 – point b Decision No 466/2014/EU Article 3 – paragraph 5 – subparagraph 1
Text proposed by the Commission Amendment To ensure that private sector investments have the greatest development impact, the EIB shall endeavour to strengthen the local private sector in beneficiary countries through support to local investment as provided for in point (a) of paragraph 1. EIB financing operations supporting the general objectives set out in paragraph 1 shall endeavour to also enhance its support to investment projects run by SMEs from the Union. In order to effectively monitor the use of funds for the benefit of the SMEs concerned, the EIB shall establish and maintain adequate contractual provisions imposing standard reporting obligations on both the financial intermediaries and the beneficiaries; To ensure that private sector investments have the greatest development impact, the EIB shall endeavour to contribute to creating favourable conditions for private enterprise and investment and ensure that in priority the local private sector, including MSMEs, cooperatives and social enterprises in beneficiary countries is strengthened, through support to local investment as provided for in point (a) of paragraph 1. EIB financing operations supporting the general objectives set out in paragraph 1 shall endeavour to also enhance its support to investment projects run by MSMEs from the recipient country and from the Union, enabling access to finance, while mobilising the development of new investment projects run by MSMEs, further facilitating the internationalisation of MSMEs. EIB financing operations shall contribute to improving market access for SMEs in the Union's third country partners and their integration into global value chains and shall further contribute to enhancing Union companies’ internationalisation and competitiveness. In order to effectively monitor and evaluate the use of funds for the benefit of the MSMEs concerned, the EIB shall carry out thorough due diligence and establish and maintain adequate contractual provisions imposing standard reporting obligations on both the financial intermediaries and the final beneficiaries; The EIB shall endeavour to identify the obstacles to access to funding faced by SMEs and shall ensure that they are overcome;
Amendment    20 Proposal for a decision Article 1 – paragraph 1 – point 2 – point b a (new) Decision No 466/2014/EU Article 3 – paragraph 5 – subparagraph 2
Present text Amendment   (b a)  in paragraph 5, the second subparagraph is replaced by the following: "The EIB shall cooperate with financial intermediaries that can support the specific needs of SMEs in the countries of operation and that do not participate in EIB financing operations implemented in an eligible country through vehicles located in a foreign non-cooperative jurisdiction referred to in Article 13." "The EIB shall cooperate with financial intermediaries that can support the specific needs of SMEs in the countries of operation and that do not participate in operations implemented through vehicles located in a foreign non-cooperative jurisdiction referred to in Article 13."
Amendment    21 Proposal for a decision Article 1 – paragraph 1 – point 2 – point b b (new) Decision No 466/2014/EU Article 3 – paragraph 6
Present text Amendment   (b b)  in Article 3, paragraph 6 is replaced by the following: "6.   EIB financing operations supporting the general objective set out in point (b) of paragraph 1 shall support investment projects predominantly in the areas of transport, energy, environmental infrastructure, information and communication technology, health and education. This includes production and integration of energy from renewable sources, energy systems transformation enabling a switch to lower carbon intensive technologies and fuels, sustainable energy security and energy infrastructure, including for gas production and transportation to Union energy market, as well as electrification of rural areas, environmental infrastructure such as water and sanitation and green infrastructure, telecommunications and broadband network infrastructure." "6.   EIB financing operations supporting the general objective set out in point (b) of paragraph 1 shall support investment projects predominantly in the areas of transport, energy, environmental infrastructure, information and communication technology, health and education. This includes production and integration of energy from renewable sources, energy efficiency measures, energy systems transformation enabling a switch to lower carbon intensive technologies and fuels, sustainable energy security and energy infrastructure, including for gas production and transportation to Union energy market, as well as electrification of rural areas, environmental infrastructure such as water and sanitation and green infrastructure, telecommunications and broadband network infrastructure."
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014D0466&from=EN)
Justification
Gas production and transportation should not be covered by the EU Guarantee given that it constitutes a fossil fuel subsidy. The Decision should put in place the conclusions of the European Council of 22 May 2013 to phase out environmentally or economically harmful subsidies, including for fossil fuels.
Amendment     22 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 7 – subparagraph 1
Text proposed by the Commission Amendment EIB financing operations supporting the general objectives set out in point (c) of paragraph 1 shall back investment projects in climate change mitigation and adaptation that contribute to the overall objectives of the United Nations Framework Convention on Climate Change and of the Paris Agreement adopted under that Convention, in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy, energy efficiency and sustainable transport, or by increasing resilience to the adverse impacts of climate change on vulnerable countries, sectors and communities. EIB financing operations supporting the general objectives set out in point (c) of paragraph 1 shall back investment projects in climate change mitigation and adaptation that contribute to the overall objectives of the United Nations Framework Convention on Climate Change and of the Paris Agreement adopted under that Convention, in particular by avoiding or reducing greenhouse gas emissions and reducing the carbon footprint in the areas of renewable energy, energy efficiency and sustainable transport, or by increasing resilience to the adverse impacts of climate change on vulnerable countries, sectors and communities.
Amendment    23 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 7 – subparagraph 3
Text proposed by the Commission Amendment Over the period covered by this decision, the EIB should endeavour to sustain the current high level of climate-relevant operations, while the minimum volume of those operations shall represent at least 25 % of the total EIB financing operations. Over the period covered by this Decision, the EIB should endeavour to sustain a high level of climate-relevant operations, the volume of which shall represent at least 25 % of the total EIB financing operations outside the Union, gradually increasing this target to at least 35 % by 2020.
Amendment    24 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision 466/2014/EU Article 3 – paragraph 7 – subparagraph 4 a (new)
Text proposed by the Commission Amendment   EIB operations shall inter alia integrate concrete actions to phase out financing projects detrimental to the achievement of Union's climate objectives and step up efforts to support renewable energy sources and energy efficiency.
Amendment     25 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 8 – subparagraph 1
Text proposed by the Commission Amendment EIB financing operations supporting the general objectives set out in point (d) of paragraph 1 shall back investment projects that address root causes of the migration and contribute to long-term economic resilience and safeguard sustainable development in beneficiary countries. EIB financing operations shall, in particular, address increased needs for infrastructure and related services to cater for the migrants influx, and boost employment opportunities for host and refugee communities to foster economic integration and enable refugees to become self-reliant. EIB financing operations supporting the general objectives set out in point (d) of paragraph 1 shall back investment projects that address root causes of the migration and contribute to long-term economic resilience and safeguard sustainable development in beneficiary countries while ensuring compliance with the SDGs. EIB financing operations shall, in particular, address increased needs for infrastructure and related services to cater for the migrants influx, boost employment opportunities for host and refugee communities to foster economic integration and enable refugees to become self-reliant, strengthen humanitarian action and support for creation of decent jobs, while ensuring the full respect of human, labour and social rights, fundamental freedoms and gender mainstreaming by implementing a rights-based approach (RBA) encompassing all human and social rights in line with the principles of transparency, participation, non-discrimination and accountability. EIB financing operations shall recognise that gender equality is a cross cutting issue to achieving sustainable development. A gender perspective shall be applied to all financing operations. The EIB shall develop a Gender Action Plan by 31 December 2017 and shall ensure that all EIB operations under this mandate comply with the principles of its Gender Strategy approved in December 2016.
Amendment    26 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 8 – point b
Text proposed by the Commission Amendment (b)  the public sector, including municipalities and public sector entities, in terms of infrastructure and services to address significantly increased needs; (b)  the public sector, including municipalities and public sector entities, in terms of infrastructure and services, and in particular health care and special facilities for children, sanitation services and school education, to address significantly increased needs;
Amendment     27 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c a (new) Decision No 466/2014/EU Article 3 – paragraph 8 a (new)
Text proposed by the Commission Amendment   (ca)   the following paragraph is inserted:   “8a.  EIB financing operations supporting the general objectives set out in paragraph 1 shall recognise that, as a cross-cutting issue in achieving sustainable development, gender equality is an important element for project due diligence. A gender perspective shall be applied to all such financing operations.
Amendment    28 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c b (new) Decision 466/2014/EU Article 3 – paragraph 8 b (new)
Text proposed by the Commission Amendment   (cb)  the following paragraph is inserted:   “8b.  The EIB shall ensure that companies participating in projects co-financed by the EIB shall be required to adhere to the principle of equal pay and pay transparency and to the principle of gender equality as set out in Directive 2006/54/EC of the European Parliament and of the Council1a . EIB decisions on project financing shall take into account action by candidate companies in the field of corporate social responsibility;   ______________   1a Directive 2006/54/EC of the European Parliament and of the Council1a of 5 June 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation (OJ L 204, 26.7.2006, p. 23).
Amendment     29 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c c (new) Decision No 466/2014/EU Article 3 – paragraph 9
Present text Amendment   (c c)  paragraph 9 is replaced by the following: "9.   The EU guarantee shall cover only EIB financing operations carried out in eligible countries that have concluded a framework agreement with the EIB establishing the legal conditions under which such operations are to be carried out." "9.   The EU guarantee shall cover only EIB financing operations carried out in eligible countries that have concluded a framework agreement with the EIB establishing the legal conditions under which such operations are to be carried out. Legal conditions under which operations are to be carried out shall also include environmental, social and human rights and labour standards."
(http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1488449786444&uri=CELEX:02014D0466-20160926)
Amendment     30 Proposal for a decision Article 1 – paragraph 1 – point 2 a (new) Decision No 466/2014/EU Article 5 – paragraph 1 – subparagraph 3 a (new)
Text proposed by the Commission Amendment   (2a)  in Article 5, paragraph 1 the following subparagraph is added after subparagraph 3:   The Commission and the EIB shall ensure that local civil society is sufficiently well informed about planned and ongoing operations.
Amendment     31 Proposal for a decision Article 1 – paragraph 1 – point 2 b (new) Decision No 466/2014/EU Article 5 – paragraph 1 – subparagraph 7 a (new)
Text proposed by the Commission Amendment   (2b)  in Article 5, paragraph 1 the following subparagraph is added after subparagraph 7:   EIB financing operations shall be consistent with the Commission Communication entitled ‘A renewed EU strategy 2011-14 for Corporate Social Responsibility’, including with regard to financial intermediaries.
Amendment    32 Proposal for a decision Article 1 – paragraph 1 – point 2 c (new) Decision No 466/2014/EU Article 5 – paragraph 1 a (new)
Text proposed by the Commission Amendment   (2 c)  In Article 5, the following paragraph is inserted:   “1a.   The Commission shall be empowered to adopt delegated acts in accordance with Article 18 concerning amendments to Annex IV, by including in particular a list of root causes of migration by region.”
Amendment     33 Proposal for a decision Article 1 – paragraph 1 – point 3 a (new) Decision No 466/2014/EU Article 8 – paragraph 5
Present text Amendment   (3a)  in Article 8, paragraph 5 is replaced by the following : “5.  Financing agreements with individual promoters relating to EIB financing operations shall also include appropriate environmental and social provisions in accordance with the EIB's own rules and procedures.” “5.   Financing agreements with individual promoters relating to EIB financing operations shall also include appropriate procurement, environmental, climate and social provisions in accordance with the EIB’s own rules and procedures, including requirements to make the EU guarantee and EIB involvement visible to the end beneficiary.”
Amendment    34 Proposal for a decision Article 1 – paragraph 1 – point 3 b (new) Decision No 466/2014/EU Article 8 – paragraph 6
Present text Amendment   (3b)  in Article 8, paragraph 6 is replaced by the following: "6.  The Commission and the EIB shall set out in the guarantee agreement referred to in Article 14 a clear and transparent allocation policy allowing the EIB to identify, within its external activity, the operations to be financed under this Decision in order to ensure the most effective use of the EU guarantee. The allocation policy shall be based on the creditworthiness of EIB financing operations as assessed by the EIB, the ceilings as defined in Annex I, the nature of the counterparty, whether a sovereign State or a sub-sovereign entity falling under paragraph 1 of this Article or a private entity, EIB risk absorption capacity and other relevant criteria, including added value of the EU guarantee. The European Parliament and the Council shall be informed on the allocation policy in accordance with Article 14." "6.  The Commission and the EIB shall set out in the guarantee agreement referred to in Article 14 a clear and transparent allocation policy allowing the EIB to identify, within its external activity, the operations to be financed under this Decision in order to ensure the most effective use of the EU guarantee. The allocation policy shall be based on the creditworthiness of EIB financing operations as assessed by the EIB, the ceilings as defined in Annex I, the nature of the counterparty, whether a sovereign State or a sub-sovereign entity falling under paragraph 1 of this Article or a private entity, EIB risk absorption capacity and other relevant criteria, including added value of the EU guarantee. The European Parliament and the Council shall be informed on the allocation policy under this Decision including in comparison with EIB's own risk lending allocation policy outside the Union, in accordance with Article 14."
Amendment    35 Proposal for a decision Article 1 – paragraph 1 – point 3 c (new) Decision No 466/2014/EU Article 9 – paragraph 1 – subparagraph 1
Present text Amendment   (3 c)  in Article 9, the first subparagraph of paragraph 1 is replaced by the following: "The EIB shall carry out thorough due diligence and, where appropriate, shall require project promoters to carry out local public consultation, in line with Union social and environmental principles, with the relevant national and local stakeholders, as well as with civil society, at project planning stage and implementation stage on social, human rights, environmental, economic and development-related aspects of investment projects covered by the EU guarantee, and to provide information relevant for the assessment of the contribution to the fulfilment of Union external policy and strategic objectives. "The EIB shall carry out thorough due diligence and, shall require project promoters to carry out local public consultation, in line with Union social and environmental principles, with the relevant national and local stakeholders, as well as with civil society, at project planning stage and implementation stage on social, human rights, gender equality, environmental, economic and development-related aspects of investment projects covered by the EU guarantee, and to provide information relevant for the assessment of the contribution to the fulfilment of Union external policy and strategic objectives.
Amendment     36 Proposal for a decision Article 1 – paragraph 1 – point 3 d (new) Decision No 466/2014/EU Article 9 – paragraph 1 – subparagraph 1 a (new)
Text proposed by the Commission Amendment   (3 d)  in Article 9, paragraph 1, the following subparagraph is inserted after the first subparagraph:   "The EIB shall ensure that the principle of free prior informed consent is implemented, prior to financing operations affecting land and natural resources.";
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02014D0466-20160926&qid=1488388409292&from=EN)
Justification
In 2007, the UN General Assembly adopted the United Nations Declaration on the Rights of Indigenous Peoples, recognizing their rights and making specific mention of Free, Prior and Informed Consent (FPIC) as a pre-requisite for any activity that affects their ancestral lands, territories and natural resources. Such principle should also be respected in EIB’s operations.
Amendment     37 Proposal for a decision Article 1 – paragraph 1 – point 3 e (new) Decision No 466/2014/EU Article 9 – paragraph 1 – subparagraph 2
Present text Amendment   (3e)  in Article 9, the second subparagraph of paragraph 1, is replaced by the following: “Where appropriate, this appraisal shall include an assessment of how the capacities of the beneficiaries of EIB financing can be reinforced throughout the project cycle with technical assistance. The EIB’s own rules and procedures shall include the necessary provisions on assessment of environmental and social impact of investment projects and of aspects related to human rights and conflict prevention, to ensure that investment projects supported under this Decision are environmentally and socially sustainable.“ “This appraisal shall include an assessment of how the capacities of the beneficiaries of EIB financing can be reinforced throughout the project cycle with technical assistance. The EIB’s own rules and procedures shall include the necessary provisions on assessment of environmental and social impact of investment projects and of aspects related to human rights and conflict prevention, to ensure that investment projects supported under this Decision are environmentally and socially sustainable. As part of its available internal guidance on application of due diligence, the EIB shall develop practical guidance on the assessment of aspects related to all basic human rights, to be used during the ex ante assessment and ongoing monitoring on a project-by-project basis, including for projects involving financial intermediaries, based on the existing frameworks, in particular the EU Strategic Framework and Action Plan for Human Rights, and taking into account existing human rights benchmarks provided by the Union, relevant United Nations bodies and human rights organisations.”
(http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32014D0466)
Amendment     38 Proposal for a decision Article 1 – paragraph 1 – point 3 f (new) Decision No 466/2014/EU Article 9 – paragraph 3
Present text Amendment   (3 f)  Article 9(3) is replaced by the following: 3.  The EIB monitoring shall also endeavour to cover the implementation of intermediated operations and the performance of financial intermediaries in support of SMEs. "3.   The EIB monitoring shall cover the implementation of intermediated operations and the performance of financial intermediaries in support of SMEs."
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014D0466&qid=1487606632536&from=EN)
Amendment    39 Proposal for a decision Article 1 – paragraph 1 – point 3 g (new) Decision No 466/2014/EU Article 9 – paragraph 5
Present text Amendment   (3 g)   in Article 9, paragraph 5 is replaced by the following: “5.   The results of monitoring shall, where possible, be disclosed, subject to confidentiality requirements and the agreement of relevant parties. ” “5.   The results of monitoring shall be disclosed, subject to confidentiality requirements and the agreement of relevant parties.”
Amendment     40 Proposal for a decision Article 1 – paragraph 1 – point 5 – point a Decision No 466/2014/EU Article 11 – paragraph 1 – point b
Text proposed by the Commission Amendment (a)  in point (b), the following sentence is added: (a)  point (b), is amended as follows: (b)  Indicators for projects providing strategic response addressing root causes of migration shall be developed by the EIB; (b)  an assessment of the added value, the estimated outputs, outcomes and development impact of EIB financing operations at an aggregated basis, drawing on the EIB’s Results Measurement framework annual report. To that end, the EIB shall use performance indicators in relation to development, environmental and social aspects, including human right and gender equality aspects, of projects funded, taking into account the relevant indicators under the 2005 Paris Declaration for Aid Effectiveness. Indicators for gender equality shall include the promotion of equality between women and men, gender budgeting and targets, and, where possible, shall be evaluated ex post by disaggregating data by gender. Indicators for environmental aspects of projects shall include criteria for clean technology which are oriented in principle at energy efficiency and technologies for reducing emissions. The EIB shall develop indicators for projects providing strategic response addressing root causes of migration and building long-term economic resilience of host and transit communities, in detailed and regular consultation and cooperation with stakeholders, civil society, affected communities, and NGOs;
Amendment     41 Proposal for a decision Article 1 – paragraph 1 – point 5 – point a a (new) Decision No 466/2014/EU Article 11 – paragraph 1 – point c
Present text Amendment   (a a)  point c is replaced by the following: "(c)   an assessment of the contribution of EIB financing operations to the fulfilment of Union external policy and strategic objectives, taking into account the regional technical operational guidelines referred to in Article 5;" "(c)   an assessment of the contribution of EIB financing operations to the fulfilment of Union external policy and strategic objectives.   The Commission, in cooperation with the European External Action Service (EEAS), shall establish a framework and methodology for annual reporting by the EIB on its operations covered by the Community Guarantee and their compliance with the general principles guiding Union external action as referred to in Article 21 TEU. The key objective of this reporting shall be to monitor the compliance of the EIB with obligations under the Treaty on the European Union and notably the provisions of its Article 21, including respect for and promotion of human rights, eradication of poverty, and the management of environmental risks.   That methodology shall be developed by the Commission and the EEAS by ... [one year after the entry into force of this amending Decision] and shall build on reporting on human rights compliance by the EIB, as requested by the EU Strategic Framework and Action Plan for Human Rights.   Based on the annual reporting by the EIB, the Commission shall submit each year to the European Parliament its own evaluation of the information provided by the EIB and suggest possible changes in the EIB’s policies and procedures for adoption by the Member States after taking into account the opinion of the European Parliament on those changes. Possible recommendations by the European Commission and the European Parliament on how to improve EIB reporting to that end shall be reflected by it in the context of the updating of the Regional technical operational guidelines."
(http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1488449786444&uri=CELEX:02014D0466-20160926)
Amendment     42 Proposal for a decision Article 1 – paragraph 1 – point 5 – point a b (new) Decision No 466/2014/EU Article 11 – paragraph 1 – point e
Present text Amendment   (a b)  In Article 11, paragraph 1, point (e) is replaced by the following: (e)  an assessment of the quality of EIB financing operations, in particular, the extent to which the EIB has taken into account environmental and social sustainability in the due diligence and monitoring of the investment projects financed;" "(e)  an assessment of the quality of EIB financing operations, in particular, the extent to which the EIB has taken into account environmental and social sustainability in the due diligence and monitoring of the investment projects financed as well as measures to maximise local ownership by promoting the involvement of affected communities, civil society organisations and NGOs;"
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014D0466&qid=1487606632536&from=EN)
Amendment     43 Proposal for a decision Article 1 – paragraph 1 – point 5 – point b Decision No 466/2014/EU Article 11 – paragraph 1 – point j
Text proposed by the Commission Amendment (j)  An assessment of the contribution of EIB financing operations in providing strategic response addressing root causes of migration. ; (j)  An assessment of the contribution of EIB financing operations in providing strategic response addressing root causes of migration stemming from poverty, inequality, demographic growth, lack of employment and economic opportunities, climate change and contributing to the long-term economic resilience of refugees, migrants, host and transit communities;
Amendment    44 Proposal for a decision Article 1 – paragraph 1 – point 5 a (new) Decision No 466/2014/EU Article 11 – paragraph 2
Present text Amendment   (5 a)  in Article 11, paragraph 2 is replaced by the following: 2.  For the purposes of the Commission's reporting referred to in paragraph 1, the EIB shall provide the Commission with yearly reports on EIB financing operations carried out under this Decision including all necessary elements allowing the Commission to report in accordance with paragraph 1. The EIB may also provide to the Commission additional information relevant for the European Parliament and the Council to have a comprehensive overview of EIB external activity. 2.  For the purposes of the Commission's reporting referred to in paragraph 1, the EIB shall provide the Commission with yearly reports on EIB financing operations carried out under this Decision including all necessary elements allowing the Commission to report in accordance with paragraph 1. The EIB may also provide to the Commission additional information relevant for the European Parliament and the Council to have a comprehensive overview of EIB external activity. The European Parliament may, on the basis of the yearly reports, draw up recommendations to the EIB concerning ongoing projects.
Amendment    45 Proposal for a decision Article 1 – paragraph 1 – point 5 b (new) Decision No 466/2014/EU Article 12 – paragraph 1 – introductory part
Present text Amendment   (5 b)  in Article 12, paragraph 1, the introductory part is replaced by the following: "1.  In accordance with its own transparency policy and Union principles on access to documents and information, and progressively with International Aid Transparency Initiative standards, the EIB shall make publicly available on its website information relating to:" "1.  In accordance with its own transparency policy and Union principles on access to documents and information, and progressively with International Aid Transparency Initiative standards, the EIB shall proactively and systematically make publicly available on its website information relating to:"
Amendment    46 Proposal for a decision Article 1 – paragraph 1 – point 5 c (new) Decision No 466/2014/EU Article 12 – paragraph 1 – point a
Present text Amendment   (5 c)  in Article 12, paragraph 1, point (a) is replaced by the following: "(a)   all EIB financing operations carried out under this Decision, after the project approval stage, in particular indicating whether an investment project is covered by the EU guarantee and how it contributes to the goals of the Union external action, noting in particular its economic, social and environmental impact;"" "(a)   all EIB financing operations carried out under this Decision, after the project approval stage, in particular indicating whether an investment project is covered by the EU guarantee and how it contributes to the goals of the Union external action, noting in particular its economic, social and environmental, climate and gender specific impact, as well as publish relevant information related to individual projects under this decision, including the Results Measurement sheets, taking into account the protection of confidential and commercially sensitive information;"
Amendment     47 Proposal for a decision Article 1 – paragraph 1 – point 5 d (new) Decision No 466/2014/EU Article 12 – paragraph 1 – point c
Present text Amendment   (5 d)  Article 12, paragraph 1, point (c) is replaced by the following: “(c)  where possible and appropriate, existing framework agreements between the EIB and a recipient country. When signing new agreements or amending existing ones, the EIB shall endeavour to make possible their disclosure;” “(c)  where possible and appropriate, existing framework agreements between the EIB and a recipient country. When signing new agreements or amending existing ones, the EIB shall ensure their disclosure;”
Amendment     48 Proposal for a decision Article 1 – paragraph 1 – point 5 e (new) Decision No 466/2014/EU Article 13
Text proposed by the Commission Amendment   (5 e)  Article 13 is replaced by the following: “Article 13 “Article 13 Non-cooperative jurisdictions Non-cooperative jurisdictions In its financing operations, the EIB shall not tolerate any activities carried out for illegal purposes, including money laundering, financing of terrorism, tax fraud and tax evasion, corruption, and fraud affecting the financial interests of the Union. In particular the EIB shall not participate in any financing operation implemented in an eligible country through a foreign vehicle located in a non-cooperative jurisdiction identified as such by the Union, the United Nations, the Organisation for Economic Cooperation and Development or the Financial Action Task Force. In its financing operations, the EIB shall comply with relevant standards and applicable legislation on the prevention of money laundering, and the fight against terrorism, tax fraud and tax evasion.   The EIB shall not make use of or engage in tax avoidance structures, in particular aggressive tax planning schemes or practices not complying with tax good governance criteria, as set out in the legal acts of the Union, Council conclusions, Commission communications or any formal notice by the Commission.   The EIB shall not maintain business relations with entities incorporated or established in jurisdictions that do not co-operate with the Union in relation to the application of the internationally agreed tax standards on transparency and exchange of information.   When concluding agreements with financial intermediaries, the EIB shall transpose the requirements referred to in this Article into the relevant contracts and shall request country-by-country reporting about their observance.   The EIB shall, following a consultation with the Commission and stakeholders, revise and update its policy on non-cooperative jurisdictions at the latest following the adoption of the Union list of non-cooperative jurisdictions. Every year thereafter, the Commission shall submit a report to the European Parliament and to the Council on the implementation of that policy. In its financing operations, the EIB shall apply the principles and standards set out in Union law on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, including a requirement to take reasonable measures to identify the beneficial owners where applicable.
Amendment    49 Proposal for a decision Article 1 – paragraph 1 – point 5 f (new) Decision No 466/2014/EU Article 14 – paragraph 1
Present text Amendment   (5 f)  in Article 14, paragraph 1is replaced by the following: "The Commission and the EIB shall sign a guarantee agreement laying down the detailed provisions and procedures relating to the EU guarantee as set out in Article 8, and shall inform the European Parliament and the Council accordingly." "The Commission and the EIB shall sign a guarantee agreement laying down the detailed provisions and procedures relating to the EU guarantee as set out in Article 8, which they shall communicate to the European Parliament and the Council"
Amendment    50 Proposal for a decision Article 1 – paragraph 1 – point 5 g (new) Decision No 466/2014/EU Article 18 – paragraph 2 a (new)
Text proposed by the Commission Amendment   (5 g)   in Article 18 the following paragraph is inserted:   “2a.   The delegation of power referred to in Article 5 shall be conferred on the Commission for an indeterminate period of time from [date of entry into force of this amending Decision].”
Amendment    51 Proposal for a decision Article 1 – paragraph 1 – point 5 h (new) Decision No 466/2014/EU Article 18 – paragraph 3
Present text Amendment   (5 h)   in Article 18, paragraph 3 is replaced by the following: "3.   The delegation of power referred to in Article 4 may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force." "3.   The delegation of power referred to in Articles 4 and 5 may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force."
Amendment    52 Proposal for a decision Article 1 – paragraph 1 – point 5 i (new) Decision No 466/2014/EU Article 18 – paragraph 5
Present text Amendment   (5 i)  in Article 18, paragraph 5 is replaced by the following: "5.   A delegated act adopted pursuant to Article 4 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council." "5.   A delegated act adopted pursuant to Articles 4 and 5 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.""
Amendment     53 Proposal for a decision Annex I Decision No 466/2014/EU Annex I – paragraph -1 (new)
Text proposed by the Commission Amendment   EIB governing bodies shall in particular use such possibility of reallocation to allow for a continued focus of the EU guarantee on priority countries with a higher risk profile than those covered under EIB’s Own Risk Facilities. The Commission shall keep the European Parliament and the Council regularly informed of such reallocations including in comparison with EIB’s own risk lending allocation policy outside the Union.
Amendment    54 Proposal for a decision Annex I Decision No 466/2014/EU Annex 1 – point B – introductory part
Text proposed by the Commission Amendment B.  Neighbourhood and Partnership countries: EUR 18 374 000 000, broken down into the following sub-ceilings: B.  Neighbourhood and Partnership countries: EUR 23 145 000 000, broken down into the following sub-ceilings:
Amendment    55 Proposal for a decision Annex I Decision No 466/2014/EU Annex I – point B – point i
Text proposed by the Commission Amendment (i)  Mediterranean countries: EUR 12 366 000 000 of which EUR 10 506 000 000 under the general mandate and EUR 1 860 000 000 under the private sector lending mandate; (i)  Mediterranean countries: EUR 13 607 000 000 of which EUR 11 747 000 000 under the general mandate and EUR 1 860 000 000 under the private sector lending mandate;
Amendment    56 Proposal for a decision Annex I Decision No 466/2014/EU Annex 1 – point B – point ii
Text proposed by the Commission Amendment (ii)  Eastern Europe, Southern Caucasus and Russia: EUR 6 008 000 000; (ii)  Eastern Europe, Southern Caucasus and Russia: EUR 9 538 000 000;
Amendment    57 Proposal for a decision Annex I Decision No 466/2014/EU Annex I – point C – introductory part
Text proposed by the Commission Amendment C.  Asia and Latin America: EUR 3 785 000 000, broken down into the following sub-ceilings: C.  Asia and Latin America: EUR 5 130 000 000, broken down into the following indicative sub-ceilings:
Amendment    58 Proposal for a decision Annex I Decision No 466/2014/EU Annex I – point C – point i
Text proposed by the Commission Amendment (i)  Latin America: EUR 2 543 000 000; (i)  Latin America: EUR 3 318 000 000;
Amendment    59 Proposal for a decision Annex I Decision No 466/2014/EU Annex I – point C – point ii
Text proposed by the Commission Amendment (ii)  Asia: EUR 1 040 000 000; (ii)  Asia: EUR 1 510 000 000;
Amendment    60 Proposal for a decision Annex I Decision No 466/2014/EU Annex I – point C – point iii
Text proposed by the Commission Amendment (iii)  Central Asia: EUR 202 000 000; (iii)  Central Asia: EUR 302 000 000;
Amendment    61 Proposal for a decision Annex I Decision No 466/2014/EU Annex I – point D – paragraph 1
Text proposed by the Commission Amendment South Africa: EUR 462 000 000. South Africa: EUR 516 000 000.
Amendment    62 Proposal for a decision Article 1 a (new)
Text proposed by the Commission	Amendment
	Article 1 a
	Transitional provision
	The EIB may finance projects for the private sector lending mandate before the entry into force of this Decision and the conclusion of a guarantee agreement between the Commission and the EIB. Such projects may be included within the EU guarantee coverage, subject to confirmation by the Commission of the respect of the terms to be agreed in the guarantee agreement.

OPINION of the Committee on Development(*) (24.3.2017)

for the Committee on Budgets

on the proposal for a decision of the European Parliament and of the Council amending Decision No 466/2014/EU granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
(COM(2016)0583 – C8‑0376/2016 – 2016/0275(COD))

Rapporteur (*): Nirj Deva

(*)  Associated committee – Rule 54 of the Rules of Procedure

SHORT JUSTIFICATION

As the biggest multilateral lender by volume in the world, the EIB is increasingly active outside the EU, investing in projects that promote sustainable development and inclusive economic growth, guided by EU external policy objectives, therefore becoming an integral part of the External Investment Plan (EIP).

Unprecedented challenges continue to stretch the capacity of the external mandate, leaving a limited operational margin in Asia, South Africa, Central Asia, Eastern Europe, foreseen to be reduced even further under the Commission’s proposed ELM ceiling. The EIB’s presence in Asia and Latin America and South Africa would be cut by 50% compared to its current levels, while the bank’s activity in the Eastern Neighbourhood would see a significant decline.

The Rapporteur welcomes the EIB Resilience Package, but believes that an additional EUR 3 530 000 000 beyond the Commission proposal would allow the EIB to maintain its external activities at current levels, beyond the neighbouring countries currently affected by the migration and refugee crisis.

The EIP can develop to be an incredible catalyst to sustainable growth and job creation. It provides a coherent framework to promote investment, encourage public-private partnerships and support MSMEs, by leveraging funds from the EU, its Member States (MS) and other donors and financing from Financing Institutions (FIs) and the private sector.

The Rapporteur believes that the European Commission and the EIB should maintain more of a long-term focus on sustainable development, job creation and growth, rather than investing most of its energy in tackling the response to the refugee and migration crisis. Low-income and middle-income countries are at the centre of the refugee crisis. A large majority of forcibly displaced people live in developing countries which host 89 percent of refugees and 99 percent of internally displaced persons.[1]

As such, a clear distinction must be made between a long-term development agenda, in the context of the Sustainable Development Goals, which includes addressing the root causes of migration and the short-term perspective of helping refugees and host communities in crisis-affected areas, as intended by Building Block 3 of the EIB Resilience Package.

The Rapporteur further believes that it is vital to support SMEs to transition into the formal sector and have better access to credit. Taking into account that 70% of all MSMEs in emerging markets lack access to credit, improving SMEs’ access to finance and finding solutions to unlock sources of capital is crucial to enable this potentially dynamic sector to grow and provide the needed jobs. 

AMENDMENTS

The Committee on Development calls on the Committee on Budgets, as the committee responsible, to take into account the following amendments:

Amendment     1 Proposal for a decision Recital 1
Text proposed by the Commission	Amendment
(1)  The international community faces an unprecedented refugee crisis which requires solidarity, efficient mobilisation of financial resources and the need to confront and surmount the existing challenges in a concerted manner. All actors need to work together to apply sustained, medium and long-term policies and an efficient use of existing processes and programmes in order to support initiatives which contribute to addressing root causes of migration.	(1)  The international community faces an unprecedented migration and refugee crisis which requires solidarity, efficient mobilisation of financial resources and the need to confront and surmount the existing challenges in a concerted manner. All actors need to work together to apply sustained, medium and long-term policies and an efficient use of existing programmes in order to engineer and support initiatives, which contribute to the Sustainable Development Goals (SDGs) and to address root causes of migratory pressures stemming from poverty, inequality, demographic growth, lack of employment and economic opportunities, climate change and the long-term consequences of forced displacement.
Amendment     2 Proposal for a decision Recital 1 a (new)
Text proposed by the Commission	Amendment
	(1a)  All attempts to link development finance with border control, management of migratory flows or readmission agreements should be avoided.
Amendment     3 Proposal for a decision Recital 2
Text proposed by the Commission	Amendment
(2)  A new results-oriented partnership framework with third countries which takes account of all Union policies and instruments should be developed. As part of that new partnership framework, the External Investment Plan should be established in order to support investments in regions outside the Union, while contributing to the achievement of the sustainable development goal. It should also fulfil the objectives of the 2030 Agenda for Sustainable Development and the objectives pursued by the other financing instruments for external action.	(2)  A new results-oriented partnership framework with third countries, aligned with the principles of development effectiveness, which takes account of all Union policies and instruments should be developed. As part of that new partnership framework, the External Investment Plan should be established in order to boost sustainable investments, which aim to achieve SDGs in regions outside the Union, while partnering with the Union and local private sector and contributing to the achievement of the SDGs. It should also fulfil the objectives of the 2030 Agenda for Sustainable Development, the Addis Ababa Action Agenda, including the promotion of domestic resources mobilisation and the objectives pursued by the other financing instruments for external action. The more and the faster a country progresses in its internal reforms to the building and consolidation of democratic institutions, the respect for human rights and the rule of law, the more support it should receive from the Union. Such a positive conditionality approach can bring real change and would guarantee that Union tax payers' money is spent in a sustainable manner;
Amendment     4 Proposal for a decision Recital 9
Text proposed by the Commission	Amendment
(9)  In order to allow the ELM to respond to potential upcoming challenges and Union priorities, as well as to provide a strategic response addressing root causes of migration, the maximum ceiling for the EIB financing operations under the EU guarantee should be increased to EUR 32 300 000 000 by releasing the optional additional amount of EUR 3 000 000 000. Under the general mandate, the amount of EUR 1 400 000 000 should be earmarked for projects in the public sector directed to refugees and host communities in crisis affected areas.	(9)  In order to allow the ELM to respond to potential upcoming challenges and Union priorities, as well as to provide a strategic response addressing root causes of migratory pressures stemming from poverty, inequality, demographic growth, lack of employment and economic opportunities, climate change, the maximum ceiling for the EIB financing operations under the EU guarantee should be increased to EUR 38 470 000 000. Under the general mandate, the amount of EUR 1 400 000 000 should be earmarked for projects in the public sector directed towards the development of economic and social infrastructure in partner countries, transit and host communities, with a focus on job creation and sustainability.
Amendment    5 Proposal for a decision Recital 10
Text proposed by the Commission	Amendment
(10)  Under the new private sector lending mandate, the maximum amount of EUR 2 300 000 000 should be dedicated to projects addressing root causes of migration within the maximum increased ceiling and should benefit from the Comprehensive Guarantee by the Union.	(10)  Under the new private sector lending mandate, the maximum amount of EUR 2 300 000 000 should be dedicated to projects addressing root causes of migration and contributing to the long-term economic resilience of host and transit communities, within the maximum increased ceiling and should benefit from the Comprehensive Guarantee by the Union.
Amendment     6 Proposal for a decision Recital 10 a (new)
Text proposed by the Commission	Amendment
	(10 a)  As one of the EIB's main objectives under the ELM, support for MSMEs and local private sector development requires a concerted effort for EIB operations to be focused on improving MSMEs' access to finance and credit, providing technical assistance, promoting entrepreneurship and ensuring the adequate provision of financial services to households and firms, to enable MSMEs to make an easier transition from the volatile informal economy to the formal sector. EIB financing operations should also seek to strongly support small investment projects run by MSMEs, further facilitating the internationalisation of MSMEs, especially in remote rural areas and in particular in the field of drinking water treatment, wastewater disposal as well as renewable energy.
Amendment     7 Proposal for a decision Recital 10 b (new)
Text proposed by the Commission	Amendment
	(10b)  A revision of the external lending mandate to ensure its alignment with development effectiveness principles and the SDGs should be carried out.
Amendment     8 Proposal for a decision Recital 11
Text proposed by the Commission	Amendment
(11)  Addressing root causes of migration should be added as a new objective of the mandate.	(11)  Addressing root causes of migration and contributing to long-term sustainable development should be added as a new objective of the mandate; projects financed under the new objective should, in principle, fulfil the criteria for Official Development Assistance (ODA) established by the Development Assistance Committee (DAC) of the OECD and should be in compliance with Article 208 of the Treaty on the Functioning of the European Union and UN´s Guiding Principles on Business and Human Rights.
Amendment     9 Proposal for a decision Recital 12
Text proposed by the Commission	Amendment
(12)  Complementarity and coordination with Union initiatives addressing root causes of migration should be ensured, including with Union support for the sustainable reintegration of returned migrants in the countries of origin.	deleted
Amendment     10 Proposal for a decision Recital 13
Text proposed by the Commission	Amendment
(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change4 , the EIB should aim to sustain the current high level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020.	(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change4 , the EIB should aim to increase the current high level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020, in accordance with the commitment taken in its climate strategy. The EIB should take into account the conclusions of the European Council of 22 May 2013 to phase out environmentally or economically harmful subsidies, including those for fossil fuels.
_________________	_________________
4 Council Decision (EU) 2016/590 of 11 April 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 103, 19.4.2016, p. 1).	4 Council Decision (EU) 2016/590 of 11 April 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 103, 19.4.2016, p. 1).
Justification
In its climate strategy adopted at the end of 2015, the EIB took the commitment to raise its level of climate action projects in developing countries up to 35% by the end of 2020. This announcement should be reflected in its External Mandate. Likewise, conclusions of the European Council of 22 May 2013 should be fully reflected in Europe's external lending activities.
Amendment     11 Proposal for a decision Recital 15
Text proposed by the Commission	Amendment
(15)  The EIB should develop and implement a set of indicators in its Results Measurement framework for projects in the public sector and in the private sector directed to refugees and host communities. Therefore, an assessment of the contribution of EIB financing operations addressing root causes of migration should be included in the Commission's annual reporting to the European Parliament and to the Council on EIB financing operations.	(15)  The EIB should develop and implement a set of indicators in its Results Measurement framework for projects in the public sector and in the private sector addressing root causes of migration and the long-term economic resilience of host and transit communities. Therefore, an assessment of the contribution of EIB financing operations towards these objectives, notably contribution to SDGs, the involvement of local civil society, and the alignment with Union external priorities and Union budget priorities must be included in the Commission's annual reporting to the European Parliament and to the Council on EIB financing operations. The EIB should take all necessary steps to consolidate its accountability to the European Parliament, through transparency and access to information, by publishing the results, evaluations and impact appraisals of projects on a systematic basis via the Results Measurement Framework.
Amendment     12 Proposal for a decision Recital 16
Text proposed by the Commission	Amendment
(16)  Only where it concerns the need to address urgencies and crisis situations that could arise within the mandate period and which are recognised as Union external policy priorities, the ceiling for reallocation between the regions by the EIB in the course of the mandate should be increased from 10 % to 20 %. The private sector mandate of EUR 2 300 000 000 and the amount of EUR 1 400 000 000 dedicated to public sector projects cannot be reallocated because its purpose is to address root causes of migration.	(16)  Only where it concerns the need to address urgencies and crisis situations that could arise within the mandate period and which are recognised as Union external policy priorities, the ceiling for reallocation between the regions by the EIB in the course of the mandate should be increased from 10 % to 20 %. The EIB should notify the European Parliament of any reallocation decision by providing a justification report and an impact assessment. The private sector mandate of EUR 2 300 000 000 and the amount of EUR 1 400 000 000 dedicated to public sector projects under the EIB Resilience Initiative should be absorbed completely for its purpose and should not be reallocated.
Amendment     13 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 1 – subparagraph 1
Text proposed by the Commission Amendment The maximum ceiling of the EIB financing operations under EU guarantee throughout the period 2014-20 shall not exceed EUR 32 300 000 000. Amounts initially earmarked for financing operations but subsequently cancelled shall not count against the ceiling. The maximum ceiling of the EIB financing operations under EU guarantee throughout the period 2014-20 shall not exceed EUR 38 470 000 000. Amounts initially earmarked for financing operations but subsequently cancelled shall not count against the ceiling.
Justification
The suggested increase is required if the EIB is to contribute to the full range of EU policies and priorities, including Ukraine and further newly eligible countries.
Amendment     14 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 1 – subparagraph 2 – point a
Text proposed by the Commission Amendment (a)  a maximum amount of EUR 30 000 000 000 under a general mandate, of which an amount of up to EUR 1 400 000 000 is earmarked for projects in the public sector directed to refugees and host communities; (a)  a maximum amount of EUR 36 170 000 000 under a general mandate, of which an amount of up to EUR 1 400 000 000 is earmarked for projects in the public sector addressing the root causes of migration, including climate change, and the long-term social and economic infrastructure and development of forcibly displaced people and host communities, implemented under the EIB Resilience Initiative;
Amendment    15 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 1 – subparagraph 2 – point b
Text proposed by the Commission Amendment (b)  a maximum amount of EUR 2 300 000 000 under a private sector lending mandate for projects addressing root causes of migration. (b)  a maximum amount of EUR 2 300 000 000 under a private sector lending mandate for projects addressing root causes of migration, the long-term social and economic infrastructure and development of forcibly displaced people and host communities, implemented under the EIB Resilience Initiative;
Amendment     16 Proposal for a decision Article 1 – paragraph 1 – point 2 – point a Regulation (EC, Euratom) No 480/2009 Article 3 – paragraph 1 – point d
Text proposed by the Commission Amendment (d)  strategic response to addressing root causes of migration.; (d)  strategic response to addressing root causes of migration stemming from poverty, inequality, demographic growth, lack of employment and economic opportunities, climate change and contributing to the long-term economic resilience of host and transit communities;
Amendment    17 Proposal for a decision Article 1 – paragraph 1 – point 2 – point a a (new) Decision No 466/2014/EU Article 3 – paragraph 4
Present text Amendment   (aa)  paragraph 4 shall be replaced by the following: "4.   In developing countries, as defined in the Organisation for Economic Cooperation and Development list of official development assistance recipients, the EIB financing operations shall contribute, in accordance with Articles 208 and 209 TFEU, indirectly to the objectives of the Union development cooperation policy, such as reducing poverty through inclusive growth and sustainable economy, environmental and social development." "4.   In developing countries, as defined in the Organisation for Economic Cooperation and Development list of official development assistance recipients, the EIB financing operations shall focus, in accordance with Articles 208 and 209 TFEU, on the objectives of the Union development cooperation policy, in particular towards reducing poverty through inclusive growth and sustainable economic, environmental and social development."
(http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02014D0466-20160926&qid=1486646836381&from=FR)
Amendment     18 Proposal for a decision Article 1 – paragraph 1 – point 2 – point b Decision No 466/2014/EU Article 3 – paragraph 5 – subparagraph 1
Text proposed by the Commission Amendment To ensure that private sector investments have the greatest development impact, the EIB shall endeavour to strengthen the local private sector in beneficiary countries through support to local investment as provided for in point (a) of paragraph 1. EIB financing operations supporting the general objectives set out in paragraph 1 shall endeavour to also enhance its support to investment projects run by SMEs from the Union. In order to effectively monitor the use of funds for the benefit of the SMEs concerned, the EIB shall establish and maintain adequate contractual provisions imposing standard reporting obligations on both the financial intermediaries and the beneficiaries; To ensure that private sector investments have the greatest development impact, the EIB shall endeavour to strengthen in priority the local private sector, including MSMEs in beneficiary countries through support to local investment as provided for in point (a) of paragraph 1. EIB financing operations supporting the general objectives set out in paragraph 1 shall endeavour to enhance its support to investment projects run by MSMEs, enabling access to finance, while mobilising the development of new investment projects run by MSMEs, further facilitating the internationalisation of MSMEs. In order to effectively monitor and evaluate the use of funds for the benefit of the MSMEs concerned, the EIB shall carry out thorough due diligence and establish and maintain adequate contractual provisions imposing standard reporting obligations on both the financial intermediaries and the final beneficiaries.
Amendment     19 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 7 – subparagraph 3
Text proposed by the Commission Amendment Over the period covered by this decision, the EIB should endeavour to sustain the current high level of climate-relevant operations, while the minimum volume of those operations shall represent at least 25 % of the total EIB financing operations. Over the period covered by this decision, the EIB should endeavour to sustain the current high level of climate-relevant operations, while the minimum volume of those operations shall represent at least 25 % of the total EIB financing operations, gradually increasing that target to at least 35% by 2020.
Amendment     20 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 8 – subparagraph 1
Text proposed by the Commission Amendment EIB financing operations supporting the general objectives set out in point (d) of paragraph 1 shall back investment projects that address root causes of the migration and contribute to long-term economic resilience and safeguard sustainable development in beneficiary countries. EIB financing operations shall, in particular, address increased needs for infrastructure and related services to cater for the migrants influx, and boost employment opportunities for host and refugee communities to foster economic integration and enable refugees to become self-reliant. EIB financing operations supporting the general objectives set out in point (d) of paragraph 1 shall back investment projects that address root causes of migratory pressures stemming from poverty, underdevelopment, inequality, demographic growth, lack of employment and economic opportunities as well as from climate change and contribute to long-term economic resilience and safeguard sustainable development in beneficiary countries while ensuring compliance with the SDGs. EIB financing operations shall, in particular, strengthen humanitarian action and support for decent job creation, while ensuring the full respect of human, labour and social rights, fundamental freedoms and gender mainstreaming by implementing a rights-based approach (RBA) encompassing all human and social rights in line with transparency, participation, non-discrimination and accountability. EIB financing operations shall recognise that gender equality is a cross cutting issue to achieving sustainable development. A gender perspective shall be applied to all financing operations. The EIB shall ensure that it develops a Gender Action Plan by 31 December 2017 and that all EIB operations under this mandate comply with the principles of its Gender Strategy approved in December 2016.
Amendment     21 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c a (new) Decision No 466/2014/EU Article 3 – paragraph 9
Present text Amendment   (ca)  paragraph 9 shall be replaced by the following: "9. The EU guarantee shall cover only EIB financing operations carried out in eligible countries that have concluded a framework agreement with the EIB establishing the legal conditions under which such operations are to be carried out." "9. The EU guarantee shall cover only EIB financing operations carried out in eligible countries that have concluded a framework agreement with the EIB establishing the legal conditions under which such operations are to be carried out. Legal conditions under which operations are to be carried out shall also include environmental, social and human rights and labour standards."
(http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1488449786444&uri=CELEX:02014D0466-20160926)
Justification
The Framework agreements concluded between the EIB and a recipient country includes among others provisions on taxation, currency convertibility, transfer of funds, custom and fiscal treatment of projects, tendering and treatment of bank’s representatives. Accordingly, the framework agreements should include provisions referring to obligations in environmental, social, human rights and labour matters.
Amendment     22 Proposal for a decision Article 1 – paragraph 1 – point 3 a (new) Decision No 466/2014/EU Article 9 – paragraph 1 – subparagraph 1 a (new)
Text proposed by the Commission Amendment   (3a)  in Article 9(1), the following subparagraph shall be inserted:   "The EIB shall ensure that the principle of free prior informed consent is implemented, prior to financing operations affecting land and natural resources.";
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02014D0466-20160926&qid=1488388409292&from=EN)
Justification
In 2007, the UN General Assembly adopted the United Nations Declaration on the Rights of Indigenous Peoples, recognizing their rights and making specific mention of Free, Prior and Informed Consent (FPIC) as a pre-requisite for any activity that affects their ancestral lands, territories and natural resources. Such principle should also be respected in EIB’s operations.
Amendment     23 Proposal for a decision Article 1 – paragraph 1 – point 3 b (new) Decision No 466/2014/EU Article 9 – paragraph 1 – subparagraph 1 b (new)
Text proposed by the Commission Amendment   (3b)  in Article 9(1), the following subparagraph shall be inserted:   "The EIB shall establish a practical guidance on the assessment of aspects related to all basic human rights to be used during the ex-ante assessment and ongoing monitoring on a project-by-project basis, including for projects involving financial intermediaries, based on the existing frameworks, in particular the EU Strategic Framework and Action Plan for Human Rights.";
Amendment     24 Proposal for a decision Article 1 – paragraph 1 – point 5 – point a Decision No 466/2014/EU Article 11 – paragraph 1 – point b
Text proposed by the Commission Amendment (b)  Indicators for projects providing strategic response addressing root causes of migration shall be developed by the EIB;; (b)  Indicators for projects providing strategic response addressing root causes of migration and contributing to the long-term economic resilience of host and transit communities shall be developed by the EIB in consultation and in cooperation with stakeholders and the civil society;
Amendment     25 Proposal for a decision Article 1 – paragraph 1 – point 5 – point a a (new) Decision No 466/2014/EU Article 11 – paragraph 1 – point c
Present text Amendment   (aa)  in Article 11(1), point (c) shall be replaced by the following: "(c)   an assessment of the contribution of EIB financing operations to the fulfilment of Union external policy and strategic objectives, taking into account the regional technical operational guidelines referred to in Article 5;" "(c)   an assessment of the contribution of EIB financing operations to the fulfilment of Union external policy and strategic objectives.   The Commission, in cooperation with the European External Action Service (EEAS), shall establish a framework and methodology for annual reporting by the EIB on its operations covered by the Community Guarantee and their compliance with the general principles guiding Union external action as referred to in Article 21 TEU. The key objective of this reporting shall be to monitor the compliance of the EIB with obligations under the TEU and notably the provisions of its Article 21, including respect for and promotion of human rights, eradication of poverty, and the management of environmental risks.   That methodology shall be developed by the Commission and the EEAS during the first year following the entry into force of this revised Decision and build on reporting on human rights compliance by the EIB, as requested by the EU Strategic Framework and Action Plan for Human Rights.   Based on the annual reporting from the EIB, the Commission shall submit each year to the European Parliament its own evaluation of the information provided by the EIB and suggest possible changes in the policies and procedures followed by the EIB for adoption by the Member States after taking into account the opinion of the European Parliament on those changes. Possible recommendations by the European Commission and the European Parliament on how to improve EIB reporting to that end shall be reflected by it in the context of the updating of the Regional Technical Operational Guidelines."
(http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1488449786444&uri=CELEX:02014D0466-20160926)
Amendment     26 Proposal for a decision Article 1 – paragraph 1 – point 5 – point b Decision No 466/2014/EU Article 11 – paragraph 1 – point j
Text proposed by the Commission Amendment (j)  An assessment of the contribution of EIB financing operations in providing strategic response addressing root causes of migration. ; (j)  An assessment of the contribution of EIB financing operations in providing strategic response addressing root causes of migration stemming from poverty, inequality, demographic growth, lack of employment and economic opportunities, climate change and contributing to the long-term economic resilience of host and transit communities;
Amendment     27 Proposal for a decision Article 1 – paragraph 1 – point 5 a (new) Decision No 466/2014/EU Article 12 – paragraph 1 – introductory sentence
Present text Amendment   (5a)  in Article 12(1), the introductory wording shall be replaced by the following: "1.   In accordance with its own transparency policy and Union principles on access to documents and information, and progressively with International Aid Transparency Initiative standards, the EIB shall make publicly available on its website information relating to:" "1.   In accordance with its own transparency policy and Union law on access to documents and information, and progressively with International Aid Transparency Initiative Standards, the EIB shall make publicly available on its website information relating to:"
(http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1488449786444&uri=CELEX:02014D0466-20160926)
Amendment     28 Proposal for a decision Article 1 – paragraph 1 – point 5 b (new) Decision No 466/2014/EU Article 12 – paragraph 1 – point b a (new)
Text proposed by the Commission Amendment   (5b)  in Article 12(1), the following point shall be inserted:   "(ba)  The EIB shall make available on its public register the following documents:   -   all Result Measurement (ReM) Sheets for projects falling under the coverage of this guarantee, in particular those indicating how such guarantee contributes to the goals of the Union's external action, noting in particular its economic, social and environmental impact;   -   monitoring and evaluation reports;   -   project completion reports;   -   opinions delivered by the Commission under the procedure described in Article 19 of the EIB Statute."
Justification
Access to information and documents covered by this guarantee should be directly based on the EU’s existing legislation on access to documents and information disclosure such as the Regulation No 1049/2001 of 30 May 2001 regarding public access to European Parliament, Council and Commission documents and Regulation No 1367/2006 of 6 September 2006 on the application of the provisions of the Aarhus Convention on Access to Information, Public Participation in Decision-making and Access to Justice in Environmental Matters to Community institutions and bodies.
Amendment    29 Proposal for a decision Annex II Decision No 466/2014/EU Annex II – point B – paragraph 2 – subparagraph 1
Text proposed by the Commission Amendment Eastern Europe, Southern Caucasus and Russia Eastern Europe, Southern Caucasus
Amendment    30 Proposal for a decision Annex II Decision No 466/2014/EU Annex II – point B – paragraph 2 – subparagraph 4
Text proposed by the Commission Amendment Russia deleted
Amendment    31 Proposal for a decision Annex II Decision No 466/2014/EU Annex II – point C – paragraph 1 – subparagraph 2
Text proposed by the Commission Amendment Argentina, Bolivia, Brazil, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay, Venezuela
Amendment    32 Proposal for a decision Annex III Decision No 466/2014/EU Annex III – point B – paragraph 2 – subparagraph 1
Text proposed by the Commission Amendment Eastern Europe, Southern Caucasus and Russia Eastern Europe, Southern Caucasus
Amendment    33 Proposal for a decision Annex III Decision No 466/2014/EU Annex III – point B – paragraph 2 – subparagraph 4
Text proposed by the Commission Amendment Russia deleted

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title	EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
References	COM(2016)0583 – C8-0376/2016 – 2016/0275(COD)
Committee responsible        Date announced in plenary	BUDG 6.10.2016
Opinion by        Date announced in plenary	DEVE 6.10.2016
Rapporteur        Date appointed	Nirj Deva 16.12.2016
Discussed in committee	28.2.2017
Date adopted	21.3.2017
Result of final vote	+: –: 0:	19 5 0
Members present for the final vote	Raymond Finch, Doru-Claudian Frunzulică, Enrique Guerrero Salom, Maria Heubuch, György Hölvényi, Teresa Jiménez-Becerril Barrio, Arne Lietz, Linda McAvan, Norbert Neuser, Maurice Ponga, Lola Sánchez Caldentey, Eleni Theocharous, Paavo Väyrynen, Bogdan Brunon Wenta, Anna Záborská, Željana Zovko
Substitutes present for the final vote	Agustín Díaz de Mera García Consuegra, Frank Engel, Cécile Kashetu Kyenge, Florent Marcellesi, Louis Michel, Jan Zahradil
Substitutes under Rule 200(2) present for the final vote	Tania González Peñas, Martina Werner

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

19	+
ALDE	Louis Michel, Paavo Väyrynen
ECR	Eleni Theocharous, Jan Zahradil
PPE	Agustín Díaz de Mera García Consuegra, Frank Engel, György Hölvényi, Teresa Jiménez-Becerril Barrio, Maurice Ponga, Bogdan Brunon Wenta, Željana Zovko, Anna Záborská
S&D	Doru-Claudian Frunzulică, Enrique Guerrero Salom, Cécile Kashetu Kyenge, Arne Lietz, Linda McAvan, Norbert Neuser, Martina Werner

5	-
EFDD	Raymond Finch
GUE/NGL	Tania González Peñas, Lola Sánchez Caldentey
VERTS/ALE	Maria Heubuch, Florent Marcellesi

0	0

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

• [1]  Forcibly Displaced - Toward a development approach supporting refugees, the internally displaced, and their hosts ADVANCE EDITION, The World Bank, 2016, p.3 https://openknowledge.worldbank.org/bitstream/handle/10986/25016/9781464809385.pdf?sequence=2&isAllowed=y

OPINION of the Committee on Foreign Affairs (22.3.2017)

for the Committee on Budgets

on the proposal for a decision of the European Parliament and of the Council amending Decision No 466/2014/EU granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
(COM(2016)0583 – C8‑0376/2016 – 2016/0275(COD))

Rapporteur: Eduard Kukan

SHORT JUSTIFICATION

The Commission proposal aims at expanding the External Lending Mandate of the European Investment Bank (EIB) both quantitatively and qualitatively, in particular with the objective of stepping up activities in the Southern Neighbourhood and Western Balkans and contributing to the new External Investment Plan.

The Rapporteur welcomes this proposal, but considers that it needs to be accompanied with an adequate increase of the ceiling for EIB financing operations under EU guarantee to avoid that existing priority operations need to be discontinued. This is above all the case of EIB activities in Ukraine where it is estimated that lending at current levels would exhaust the proposed envelope already before mid-2018.

The Rapporteur supports greater strategic focus on the root causes of migration as well as projects to support host communities in the priority regions. More clarity is however needed in the proposal as to distinguishing between these different objectives and the amounts earmarked for them.

The Rapporteur also supports the idea to give the EIB the possibility to finance projects under the new private sector lending mandate before entry into force of this Decision (so-called “warehousing”).

It is also the Rapporteur’s belief that the essential link between the EIB operations and EU external policy should be further strengthened. In particular, the country distribution within the regional ceilings should fully reflect external policy priorities and constraints and should be defined in consultation with the European External Action Service.

Furthermore, transparency should be improved with regard to EIB projects financed through financial intermediaries.

AMENDMENTS

The Committee on Foreign Affairs calls on the Committee on Budgets, as the committee responsible, to take into account the following amendments:

Amendment    1 Proposal for a decision Recital 1
Text proposed by the Commission	Amendment
(1)  The international community faces an unprecedented refugee crisis which requires solidarity, efficient mobilisation of financial resources and the need to confront and surmount the existing challenges in a concerted manner. All actors need to work together to apply sustained, medium and long-term policies and an efficient use of existing processes and programmes in order to support initiatives which contribute to addressing root causes of migration.	(1)  The international community faces an unprecedented migration and refugee crisis which requires solidarity, efficient mobilisation of financial resources and the need to confront and surmount the existing challenges in a concerted manner. All actors need to work together to apply sustained, medium and long-term policies and an efficient use of existing processes and programmes in order to support initiatives which contribute to addressing root causes of migration and building the resilience of transit and host communities.
Amendment     2 Proposal for a decision Recital 9
Text proposed by the Commission	Amendment
(9)  In order to allow the ELM to respond to potential upcoming challenges and Union priorities, as well as to provide a strategic response addressing root causes of migration, the maximum ceiling for the EIB financing operations under the EU guarantee should be increased to EUR 32 300 000 000 by releasing the optional additional amount of EUR 3 000 000 000. Under the general mandate, the amount of EUR 1 400 000 000 should be earmarked for projects in the public sector directed to refugees and host communities in crisis affected areas.	(9)  In order to allow the ELM to maintain current levels of support for Union priorities as outlined in the Global Strategy on the European Union's Foreign and Security Policy ('EU Global Strategy'), respond to potential upcoming challenges and provide a strategic response addressing root causes of migration, the maximum ceiling for the EIB financing operations under the EU guarantee should be increased to EUR 36 300 000 000, inter alia by releasing the optional additional amount of EUR 3 000 000 000. Under the general mandate, the amount of EUR 1 400 000 000 should be earmarked for projects in the public sector aimed at enhancing resilience of migrants, refugees and transit and host communities.
Amendment     3 Proposal for a decision Recital 9 a (new)
Text proposed by the Commission	Amendment
	(9 a)  While addressing root causes of the migration and refugee crisis is paramount, that should not come at the cost of policies in other areas of key strategic priority as outlined in the EU Global Strategy.
Amendment    4 Proposal for a decision Recital 10 a (new)
Text proposed by the Commission	Amendment
	(10 a)  Given the need for the swift implementation of the EIB Resilience Initiative, the EIB should be able to warehouse projects under the private sector lending mandate, subject to conditions to be agreed between the Commission and the EIB.
Amendment    5 Proposal for a decision Recital 11
Text proposed by the Commission	Amendment
(11)  Addressing root causes of migration should be added as a new objective of the mandate.	(11)  Addressing root causes of migration and building resilience of transit and host communities should be added as a new objective of the mandate and should be pursued in full compliance with Article 21 of the Treaty on European Union (TEU). The EIB should carry out thorough due diligence and project monitoring in order to ensure compliance and it should maintain a complaints mechanism accessible to all stakeholders. The compliance with Article 21 TEU, including on the respect of human rights, the eradication of poverty and the management of environmental risks, should be assessed by the Commission in its annual reporting.
Amendment     6 Proposal for a decision Recital 13
Text proposed by the Commission	Amendment
(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change4 , the EIB should aim to sustain the current high level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020.	(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change4 , the EIB should aim to increase the current level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020, in accordance with the commitment taken as part of its climate strategy.
_________________	_________________
4 Council Decision (EU) 2016/590 of 11 April 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 103, 19.4.2016, p. 1).	4 Council Decision (EU) 2016/590 of 11 April 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 103, 19.4.2016, p. 1).
Amendment    7 Proposal for a decision Recital 15
Text proposed by the Commission	Amendment
(15)  The EIB should develop and implement a set of indicators in its Results Measurement framework for projects in the public sector and in the private sector directed to refugees and host communities. Therefore, an assessment of the contribution of EIB financing operations addressing root causes of migration should be included in the Commission's annual reporting to the European Parliament and to the Council on EIB financing operations.	(15)  The EIB should develop and implement a set of indicators in its Results Measurement framework for projects in the public sector and in the private sector addressing root causes of migration and enhancing resilience of migrants, refugees and transit and host communities. Therefore, an assessment of the contribution of EIB financing operations towards those objectives should be included in the Commission's annual reporting to the European Parliament and to the Council on EIB financing operations.
Amendment    8 Proposal for a decision Recital 15 a (new)
Text proposed by the Commission	Amendment
	(15 a)  Greater visibility and transparency of EIB operations under the ELM should be ensured, in particular with regard to sub-projects financed through financial intermediaries, improving access to information for the institutions of the Union and for the general public.
Amendment    9 Proposal for a decision Recital 16
Text proposed by the Commission	Amendment
(16)  Only where it concerns the need to address urgencies and crisis situations that could arise within the mandate period and which are recognised as Union external policy priorities, the ceiling for reallocation between the regions by the EIB in the course of the mandate should be increased from 10 % to 20 %. The private sector mandate of EUR 2 300 000 000 and the amount of EUR 1 400 000 000 dedicated to public sector projects cannot be reallocated because its purpose is to address root causes of migration.	(16)  Only where it concerns the need to address urgencies and crisis situations that could arise within the mandate period and which are recognised as Union external policy priorities, the ceiling for reallocation between the regions by the EIB in the course of the mandate should be increased from 10 % to 20 %. The private sector mandate of EUR 2 300 000 000 and the amount of EUR 1 400 000 000 dedicated to public sector projects under the EIB Resilience Initiative should be absorbed completely for its purpose and should not be reallocated.
Amendment    10 Proposal for a decision Recital 17
Text proposed by the Commission	Amendment
(17)  The list of eligible regions and countries and potentially eligible regions and countries should be modified in order to exclude high income countries with high credit rating (Brunei, Iceland, Israel, Singapore, Chile and South Korea). In addition, Iran is to be added to the list of potentially eligible regions and countries.	(17)  The list of eligible regions and countries and potentially eligible regions and countries should be modified in order to exclude high income countries with high credit rating (Brunei, Iceland, Israel, Singapore, Chile and South Korea). In addition, Russia is to be removed from the list of eligible regions and countries and Iran is to be added to the list of potentially eligible regions and countries.
Amendment    11 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 1 – subparagraph 1
Text proposed by the Commission Amendment The maximum ceiling of the EIB financing operations under EU guarantee throughout the period 2014-20 shall not exceed EUR 32 300 000 000. Amounts initially earmarked for financing operations but subsequently cancelled shall not count against the ceiling. The maximum ceiling of the EIB financing operations under EU guarantee throughout the period 2014-20 shall not exceed EUR 36 300 000 000. Amounts initially earmarked for financing operations but subsequently cancelled shall not count against the ceiling.
Amendment    12 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 1 – subparagraph 2 – point a
Text proposed by the Commission Amendment (a)  a maximum amount of EUR 30 000 000 000 under a general mandate, of which an amount of up to EUR 1 400 000 000 is earmarked for projects in the public sector directed to refugees and host communities; (a)  a maximum amount of EUR 34 000 000 000 under a general mandate, of which an amount of up to EUR 1 400 000 000 is earmarked for projects in the public sector aimed at enhancing resilience of migrants, refugees and transit and host communities;
Amendment    13 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 1 – subparagraph 2 – point b
Text proposed by the Commission Amendment (b)  a maximum amount of EUR 2 300 000 000 under a private sector lending mandate for projects addressing root causes of migration. (b)  a maximum amount of EUR 2 300 000 000 under a private sector lending mandate for projects addressing root causes of migration, implemented under the EIB Resilience Initiative.
Amendment    14 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision No 466/2014/EU Article 2 – paragraph 2
Text proposed by the Commission Amendment 2.  The maximum amounts under the general mandate and the private sector lending mandate referred to in paragraph 1 shall be broken down into regional ceilings and sub-ceilings as laid down in Annex I. Within the regional ceilings, the EIB shall progressively ensure a balanced country distribution within the regions covered by the EU guarantee.’; 2.  The maximum amounts under the general mandate and the private sector lending mandate referred to in paragraph 1 shall be broken down into regional ceilings and sub-ceilings as laid down in Annex I. Within the regional ceilings, the EIB shall ensure an adequate country distribution within the regions covered by the EU guarantee, in line with Union external policy priorities which shall be reflected in the regional technical operational guidelines referred to in Article 5.’;
Amendment    15 Proposal for a decision Article 1 – paragraph 1 – point 2 – point a Decision No 466/2014/EU Article 3 – paragraph 1 – point d
Text proposed by the Commission Amendment ‘(d)  strategic response to addressing root causes of migration.’; ‘(d)  strategic response to addressing root causes of migration and building resilience of transit and host communities.’;
Amendment     16 Proposal for a decision Article 1 – paragraph 1 – point 2 – point b Decision No 466/2014/EU Article 3 – paragraph 5 – subparagraph 1
Text proposed by the Commission Amendment To ensure that private sector investments have the greatest development impact, the EIB shall endeavour to strengthen the local private sector in beneficiary countries through support to local investment as provided for in point (a) of paragraph 1. EIB financing operations supporting the general objectives set out in paragraph 1 shall endeavour to also enhance its support to investment projects run by SMEs from the Union. In order to effectively monitor the use of funds for the benefit of the SMEs concerned, the EIB shall establish and maintain adequate contractual provisions imposing standard reporting obligations on both the financial intermediaries and the beneficiaries; To ensure that private sector investments have the greatest development impact, the EIB shall endeavour to strengthen the local private sector in beneficiary countries through support to local investment as provided for in point (a) of paragraph 1. EIB financing operations supporting the general objectives set out in paragraph 1 shall endeavour to also enhance its support to investment projects run by SMEs from the Union. The EIB shall allow more risk-taking, flexibility and a development approach as well as enabling accurate impact measurements. In order to effectively monitor the use of funds for the benefit of the SMEs concerned, the EIB shall establish and maintain adequate contractual provisions imposing standard reporting obligations on both the financial intermediaries and the beneficiaries';
Amendment     17 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 7 – subparagraph 1
Text proposed by the Commission Amendment EIB financing operations supporting the general objectives set out in point (c) of paragraph 1 shall back investment projects in climate change mitigation and adaptation that contribute to the overall objectives of the United Nations Framework Convention on Climate Change and of the Paris Agreement adopted under that Convention, in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy, energy efficiency and sustainable transport, or by increasing resilience to the adverse impacts of climate change on vulnerable countries, sectors and communities. EIB financing operations supporting the general objectives set out in point (c) of paragraph 1 shall back investment projects in climate change mitigation and adaptation that contribute to the overall objectives of the United Nations Framework Convention on Climate Change and of the Paris Agreement adopted under that Convention, in particular by avoiding or reducing greenhouse gas emissions and reducing the carbon footprint in the areas of renewable energy, energy efficiency and sustainable transport, or by increasing resilience to the adverse impacts of climate change on vulnerable countries, sectors and communities.
Amendment     18 Proposal for a decision Article 1 – paragraph 1 – point 3 a (new) Decision No 466/2014/EU Article 9 – paragraph 3
Present text Amendment   (3 a)  Article 9(3) is replaced by the following: 3.The EIB monitoring shall also endeavour to cover the implementation of intermediated operations and the performance of financial intermediaries in support of SMEs. "3. The EIB monitoring shall cover the implementation of intermediated operations and the performance of financial intermediaries in support of SMEs."
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014D0466&qid=1487606632536&from=EN)
Amendment    19 Proposal for a decision Article 1 – paragraph 1 – point 5 – point a Decision No 466/2014/EU Article 11 – paragraph 1 – point b
Text proposed by the Commission Amendment ‘(b)  Indicators for projects providing strategic response addressing root causes of migration shall be developed by the EIB;’; ‘(b)  Indicators for projects providing strategic response addressing root causes of migration and building resilience of transit and host communities shall be developed by the EIB in close consultation with affected communities, civil society organisations and NGOs;’;
Amendment     20 Proposal for a decision Article 1 – paragraph 1 – point 5 – point a a (new) Decision No 466/2014/EU Article 11 – paragraph 1 – point e
Present text Amendment   (a a)  point (e) is replaced by the following: (e)  an assessment of the quality of EIB financing operations, in particular, the extent to which the EIB has taken into account environmental and social sustainability in the due diligence and monitoring of the investment projects financed;" "(e)  an assessment of the quality of EIB financing operations, in particular, the extent to which the EIB has taken into account environmental and social sustainability in the due diligence and monitoring of the investment projects financed as well as measures to maximise local ownership by promoting the involvement of affected communities, civil society organisations and NGOs;"
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014D0466&qid=1487606632536&from=EN)
Amendment    21 Proposal for a decision Article 1 – paragraph 1 – point 5 – point b Decision No 466/2014/EU Article 11 – paragraph 1 – point j
Text proposed by the Commission Amendment ‘(j)  An assessment of the contribution of EIB financing operations in providing strategic response addressing root causes of migration.’; ‘(j)  An assessment of the contribution of EIB financing operations in providing strategic response addressing root causes of migration and building resilience of transit and host communities.’;
Amendment    22 Proposal for a decision Article 1 – paragraph 1 – point 5 a (new) Decision No 466/2014/EU Article 12 – paragraph 1 – point a
Present text Amendment   (5 a)  Article 12(1)(a) is replaced by the following: (a)  all EIB financing operations carried out under this Decision, after the project approval stage, in particular indicating whether an investment project is covered by the EU guarantee and how it contributes to the goals of the Union external action, noting in particular its economic, social and environmental impact; ‘(a)  all EIB financing operations carried out under this Decision, after the project approval stage, including information on projects and sub-projects financed through financial intermediaries, in particular indicating whether an investment project is covered by the EU guarantee and how it contributes to the goals of the Union external action, noting in particular its economic, social and environmental impact;’
Amendment     23 Proposal for a decision Article 1 – paragraph 1 – point 5 b (new) Decision No 466/2014/EU Article 13 – subparagraph 2
Present text Amendment   (5 b)  in Article 13 the second subparagraph is replaced by the following: In its financing operations, the EIB shall apply the principles and standards set out in Union law on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, including a requirement to take reasonable measures to identify the beneficial owners where applicable. "In its financing operations, the EIB shall apply the principles and standards set out in Union law on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing, including through the introduction of country-by-country reporting, public registers of beneficial ownership and a blacklist of non-compliant tax jurisdictions. The EIB shall regularly report to the European Parliament on the implementation of its non-compliant jurisdiction policy."
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014D0466&qid=1487606632536&from=EN)
Amendment    24 Proposal for a decision Article 1 – paragraph 1 – point 6 Decision No 466/2014/EU Article 20 – paragraph -1 (new)
Text proposed by the Commission Amendment   ‘By 30 June 2018, the Commission shall submit to the European Parliament and the Council a report evaluating the application of this Decision that shall provide input for a possible new decision on the ELM covered by the EU guarantee.
Amendment    25 Proposal for a decision Article 1 a (new)
Text proposed by the Commission	Amendment
	Article 1 a
	Transitional provision
	The EIB may finance projects for the private sector lending mandate before the entry into force of this Decision and the conclusion of a guarantee agreement between the Commission and the EIB. Such projects may be included within the EU guarantee coverage, subject to confirmation by the Commission of the respect of the terms to be agreed in the guarantee agreement.
Amendment    26 Proposal for a decision Annex I – point B – introductory part
Text proposed by the Commission	Amendment
B.  Neighbourhood and Partnership countries: EUR 18 374 000 000, broken down into the following sub-ceilings:	B.  Neighbourhood and Partnership countries: EUR 21 904 000 000, broken down into the following sub-ceilings:
Amendment    27 Proposal for a decision Annex I – point B – point ii
Text proposed by the Commission	Amendment
(ii)  Eastern Europe, Southern Caucasus and Russia: EUR 6 008 000 000;	(ii)  Eastern Europe, Southern Caucasus and Russia: EUR 9 538 000 000;
Amendment     28 Proposal for a decision Annex I – point C – introductory part
Text proposed by the Commission	Amendment
C.  Asia and Latin America: EUR 3 785 000 000, broken down into the following sub-ceilings:	C.  Asia and Latin America: EUR 4 255 000 000, broken down into the following sub-ceilings:
Amendment     29 Proposal for a decision Annex I – point C – point ii
Text proposed by the Commission	Amendment
(ii)  Asia: EUR 1 040 000 000;	(ii)  Asia: EUR 1 510 000 000;
Amendment    30 Proposal for a decision Annex III – point B – point 2 – subparagraph 4
Text proposed by the Commission	Amendment
Russia	deleted

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title	EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
References	COM(2016)0583 – C8-0376/2016 – 2016/0275(COD)
Committee responsible        Date announced in plenary	BUDG 6.10.2016
Opinion by        Date announced in plenary	AFET 6.10.2016
Rapporteur        Date appointed	Eduard Kukan 2.12.2016
Discussed in committee	9.2.2017
Date adopted	21.3.2017
Result of final vote	+: –: 0:	39 8 4
Members present for the final vote	Lars Adaktusson, Francisco Assis, Bas Belder, Goffredo Maria Bettini, Victor Boştinaru, Klaus Buchner, James Carver, Fabio Massimo Castaldo, Javier Couso Permuy, Andi Cristea, Arnaud Danjean, Anna Elżbieta Fotyga, Eugen Freund, Michael Gahler, Iveta Grigule, Sandra Kalniete, Manolis Kefalogiannis, Tunne Kelam, Andrey Kovatchev, Ryszard Antoni Legutko, Arne Lietz, Sabine Lösing, Ulrike Lunacek, Andrejs Mamikins, Ramona Nicole Mănescu, Alex Mayer, David McAllister, Francisco José Millán Mon, Demetris Papadakis, Ioan Mircea Paşcu, Tonino Picula, Julia Pitera, Jozo Radoš, Jordi Solé, Jaromír Štětina, Dubravka Šuica, Charles Tannock, László Tőkés, Geoffrey Van Orden, Boris Zala
Substitutes present for the final vote	Neena Gill, Marek Jurek, José Ignacio Salafranca Sánchez-Neyra, Marietje Schaake, Helmut Scholz, Eleni Theocharous, Traian Ungureanu, Bodil Valero
Substitutes under Rule 200(2) present for the final vote	Heidi Hautala, Romana Tomc, Ivan Štefanec

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

39	+
ALDE	Iveta Grigule, Jozo Radoš, Marietje Schaake
PPE	Lars Adaktusson, Arnaud Danjean, Michael Gahler, Sandra Kalniete, Manolis Kefalogiannis, Tunne Kelam, Andrey Kovatchev, David McAllister, Francisco José Millán Mon, Ramona Nicole Mănescu, Julia Pitera, José Ignacio Salafranca Sánchez-Neyra, Romana Tomc, László Tőkés, Traian Ungureanu, Ivan Štefanec, Jaromír Štětina, Dubravka Šuica
S&D	Francisco Assis, Goffredo Maria Bettini, Victor Boştinaru, Andi Cristea, Eugen Freund, Neena Gill, Arne Lietz, Andrejs Mamikins, Alex Mayer, Demetris Papadakis, Ioan Mircea Paşcu, Tonino Picula, Boris Zala
Verts/ALE	Klaus Buchner, Heidi Hautala, Ulrike Lunacek, Jordi Solé, Bodil Valero

8	-
ECR	Bas Belder, Anna Elżbieta Fotyga, Marek Jurek, Ryszard Antoni Legutko, Eleni Theocharous, Geoffrey Van Orden
EFDD	James Carver, Fabio Massimo Castaldo

4	0
ECR	Charles Tannock
GUE/NGL	Javier Couso Permuy, Sabine Lösing, Helmut Scholz

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

OPINION of the Committee on International Trade (28.2.2017)

for the Committee on Budgets

on the proposal for a decision of the European Parliament and of the Council amending Decision No 466/2014/EU granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
(COM(2016)0583 – C8‑0376/2016 – 2016/0275(COD))

Rapporteur: Salvatore Cicu

AMENDMENTS

The Committee on International Trade calls on the Committee on Budgets, as the committee responsible, to take into account the following amendments:

Amendment    1 Proposal for a decision Recital 2
Text proposed by the Commission	Amendment
(2)  A new results-oriented partnership framework with third countries which takes account of all Union policies and instruments should be developed. As part of that new partnership framework, the External Investment Plan should be established in order to support investments in regions outside the Union, while contributing to the achievement of the sustainable development goal. It should also fulfil the objectives of the 2030 Agenda for Sustainable Development and the objectives pursued by the other financing instruments for external action.	(2)  A new results-oriented partnership framework with third countries which takes account of all Union policies and instruments should be developed. As part of that new partnership framework, the External Investment Plan should be established in order to support investments in regions outside the Union, while contributing to inclusive and sustainable development, wealth creation and to the achievement of the Sustainable Development Goals (SDGs). It should also fulfil the objectives of the 2030 Agenda for Sustainable Development and the objectives pursued by the other financing instruments for external action.
Amendment    2 Proposal for a decision Recital 8 a (new)
Text proposed by the Commission	Amendment
	(8a)  The EIB has been entrusted with additional tasks, for instance in the field of European economic diplomacy. In order to be able to deliver in that regard, the EIB needs sufficient financial means. The success of the Guarantee Fund under the External Lending Mandate enables the EIB to deliver concrete results and enables an impact at Union level via sound projects in third countries at minimal cost to the Union budget. In light of growing demands on the EIB as the Union’s financial arm, it is considered important to reinforce this successful instrument and the Commission should increase the budget provisioning for the Guarantee Fund provided to the EIB at the time of the next legislative proposal covering the period 2021-2028.
Amendment    3 Proposal for a decision Recital 9
Text proposed by the Commission	Amendment
(9)  In order to allow the ELM to respond to potential upcoming challenges and Union priorities, as well as to provide a strategic response addressing root causes of migration, the maximum ceiling for the EIB financing operations under the EU guarantee should be increased to EUR 32 300 000 000 by releasing the optional additional amount of EUR 3 000 000 000. Under the general mandate, the amount of EUR 1 400 000 000 should be earmarked for projects in the public sector directed to refugees and host communities in crisis affected areas.	(9)  In order to allow the ELM to respond to potential upcoming challenges and Union priorities, as well as to provide a strategic response addressing root causes of migration, the maximum ceiling for the EIB financing operations under the EU guarantee should be increased to EUR 38 500 000 000. Under the general mandate, the amount of EUR 1 400 000 000 should be earmarked for projects in the public sector directed to refugees and host communities in crisis affected areas.
Justification
The Commission proposal would have a direct and immediate impact on other pressing EU policies and priorities. De facto, it would require a significant reduction of EIB annual activity in the Eastern Neighbourhood, including Ukraine. Annual activity in the East would either have to be cut down by around 70% compared to current annual lending levels. The proposed ceilings for Asia & Latin America and South Africa would result in a 50% reduction of annual activity compared to current levels.
Amendment    4 Proposal for a decision Recital 11
Text proposed by the Commission	Amendment
(11)  Addressing root causes of migration should be added as a new objective of the mandate.	(11)  Addressing root causes of migration should be added as a new objective of the mandate and every project financed under this new objective should be in compliance with Article 21 of the Treaty on European Union (TEU).
Amendment    5 Proposal for a decision Recital 12
Text proposed by the Commission	Amendment
(12)  Complementarity and coordination with Union initiatives addressing root causes of migration should be ensured, including with Union support for the sustainable reintegration of returned migrants in the countries of origin.	(12)  Complementarity and coordination with Union initiatives addressing root causes of migration should be ensured, including with Union support for the sustainable reintegration of returned migrants in the countries of origin. The EIB should therefore cooperate closely with the EEAS and should be able to call upon the relevant international organisations such as the IOM and the UNHCR where necessary.
Amendment    6 Proposal for a decision Recital 13
Text proposed by the Commission	Amendment
(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change, the EIB should aim to sustain the current high level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020.	(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change, the EIB should aim to increase the current high level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020, according to the commitment taken in its climate strategy.
Justification
In its climate strategy adopted at the end of 2015, the EIB took the commitment to raise its level of climate action projects in developing countries up to 35% by the end of 2020. This announcement should be reflected in its External Mandate.
Amendment    7 Proposal for a decision Recital 15
Text proposed by the Commission	Amendment
(15)  The EIB should develop and implement a set of indicators in its Results Measurement framework for projects in the public sector and in the private sector directed to refugees and host communities. Therefore, an assessment of the contribution of EIB financing operations addressing root causes of migration should be included in the Commission's annual reporting to the European Parliament and to the Council on EIB financing operations.	(15)  The EIB should develop and implement a set of indicators in its Results Measurement Framework for projects in the public sector and in the private sector directed to refugees and host communities including indicators allowing the project's contribution to the achievement of the SDGs, combatting the root causes of migration, and the involvement of civil societies of host communities to be measured. An assessment of the contribution of EIB financing operations addressing those factors should be included in the Commission's annual reporting to the European Parliament and to the Council on EIB financing operations, ensuring full accountability and transparency. The EIB should improve appropriate access to information, not only for the European Parliament and other institutions but also for the general public, especially with regard to the system of contracts and subcontracts and the financial data concerning projects financed by the EIB.
Amendment    8 Proposal for a decision Recital 16
Text proposed by the Commission	Amendment
(16)  Only where it concerns the need to address urgencies and crisis situations that could arise within the mandate period and which are recognised as Union external policy priorities, the ceiling for reallocation between the regions by the EIB in the course of the mandate should be increased from 10 % to 20 %. The private sector mandate of EUR 2 300 000 000 and the amount of EUR 1 400 000 000 dedicated to public sector projects cannot be reallocated because its purpose is to address root causes of migration.	(16)  Only where it concerns the need to address urgencies and crisis situations that could arise within the mandate period and which are recognised as Union external policy priorities, the ceiling for reallocation between the regions by the EIB in the course of the mandate should be increased from 10 % to 20 %. The EIB should notify the European Parliament of any reallocation decision by providing a justification report and an impact assessment. The private sector mandate of EUR 2 300 000 000 and the amount of EUR 1 400 000 000 dedicated to public sector projects cannot be reallocated because its purpose is to address root causes of migration.
Amendment    9 Proposal for a decision Recital 17
Text proposed by the Commission	Amendment
(17)  The list of eligible regions and countries and potentially eligible regions and countries should be modified in order to exclude high income countries with high credit rating (Brunei, Iceland, Israel, Singapore, Chile and South Korea). In addition, Iran is to be added to the list of potentially eligible regions and countries.	(17)  The list of eligible regions and countries and potentially eligible regions and countries should be designed in order to achieve the greatest development impact and modified in order to exclude high income countries with high credit rating (Brunei, Iceland, Israel, Singapore, Chile and South Korea). In addition, Iran is to be added to the list of potentially eligible regions and countries.
Amendment    10 Proposal for a decision Recital 17 a (new)
Text proposed by the Commission	Amendment
	(17a)  The European Council underlined the key role the EIB plays in the Union´s external economic relations and called at its meeting on 20 and 21 March 2014 on the EIB ‘to further contribute to enhancing European companies' internationalisation and competitiveness.’ Access to finance is one of the most pressing challenges for SMEs. Therefore an EIB strategy to enable further and improved access to funding for SMEs is necessary, including through trade facilitation programmes and initiatives such as the European Progress Microfinance facility and the new facilities for financing European SME trade activities. In addition, more proactive SME and microenterprise policy requirements for intermediary banks disbursing EIB funds should be established and transparency with regard to the assessment of the local economic and social impact of the EIB’s intermediated loans should be further improved.
Amendment    11 Proposal for a decision Recital 17 b (new)
Text proposed by the Commission	Amendment
	(17b)  The EIB’s quantitative targets for climate-related actions are well on track. The EIB has pledged to increase even further its focus on Climate Action in developing countries to up to 35 % by 2020. In order to enable the EIB to achieve this target, objective regional ceilings need to be allocated with sufficient funding, otherwise the EIB will have to reduce its activities in Asia and Latin America, regions where it has traditionally been very active in climate finance.
Amendment    12 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision 466/2014/EU Article 2 – paragraph 1
Text proposed by the Commission Amendment 1.  The maximum ceiling of the EIB financing operations under EU guarantee throughout the period 2014-20 shall not exceed EUR 32 300 000 000. Amounts initially earmarked for financing operations but subsequently cancelled shall not count against the ceiling. 1.  The maximum ceiling of the EIB financing operations under EU guarantee throughout the period 2014-20 shall not exceed EUR 38 500 000 000. Amounts initially earmarked for financing operations but subsequently cancelled shall not count against the ceiling.
Amendment    13 Proposal for a decision Article 1 – paragraph 1 – point 1 Decision 466/2014/EU Article 2 – paragraph 1 – point a
Text proposed by the Commission Amendment (a)  a maximum amount of EUR 30 000 000 000 under a general mandate, of which an amount of up to EUR 1 400 000 000 is earmarked for projects in the public sector directed to refugees and host communities; (a)  a maximum amount of EUR 36 200 000 000 under a general mandate, of which an amount of up to EUR 2 500 000 000 is earmarked for projects in the public sector directed to refugees and host communities as well as to addressing the root causes of migration;
Amendment    14 Proposal for a decision Article 1 – paragraph 1 – point 2 – point b Decision No 466/2014/EU Article 3 – paragraph 5 – subparagraph 1
Text proposed by the Commission Amendment To ensure that private sector investments have the greatest development impact, the EIB shall endeavour to strengthen the local private sector in beneficiary countries through support to local investment as provided for in point (a) of paragraph 1. EIB financing operations supporting the general objectives set out in paragraph 1 shall endeavour to also enhance its support to investment projects run by SMEs from the Union. In order to effectively monitor the use of funds for the benefit of the SMEs concerned, the EIB shall establish and maintain adequate contractual provisions imposing standard reporting obligations on both the financial intermediaries and the beneficiaries; To ensure that private sector investments have the greatest development impact, the EIB shall endeavour to strengthen the local private sector and contribute to creating favourable conditions for private enterprise and investment in beneficiary countries through support to local investment as provided for in point (a) of paragraph 1. EIB financing operations supporting the general objectives set out in paragraph 1 shall endeavour to also enhance its support to investment projects run by SMEs from the Union. EIB financing operations shall contribute to improving market access for SMEs in the Union's third country partners and their integration into global value chains and shall further contribute to enhancing Union companies’ internationalisation and competitiveness. In order to effectively monitor the use of funds for the benefit of the SMEs concerned, the EIB shall establish and maintain adequate contractual provisions imposing standard reporting obligations on both the financial intermediaries and the beneficiaries; The EIB endeavours to identify the obstacles to access to funding by SMEs and ensures to overcome them;
Amendment    15 Proposal for a decision Article 1 – paragraph 1 – point 2 – point b a (new) Decision 466/2014/EU Article 3 – paragraph 6
Present text Amendment   (ba)  in Article 3, paragraph 6 is replaced by the following: "6.   EIB financing operations supporting the general objective set out in point (b) of paragraph 1 shall support investment projects predominantly in the areas of transport, energy, environmental infrastructure, information and communication technology, health and education. This includes production and integration of energy from renewable sources, energy systems transformation enabling a switch to lower carbon intensive technologies and fuels, sustainable energy security and energy infrastructure, including for gas production and transportation to Union energy market, as well as electrification of rural areas, environmental infrastructure such as water and sanitation and green infrastructure, telecommunications and broadband network infrastructure." "6.   EIB financing operations supporting the general objective set out in point (b) of paragraph 1 shall support investment projects predominantly in the areas of transport, energy, environmental infrastructure, information and communication technology, health and education. This includes production and integration of energy from renewable sources, energy efficiency measures, energy systems transformation enabling a switch to lower carbon intensive technologies and fuels, sustainable energy security and energy infrastructure, as well as electrification of rural areas, environmental infrastructure such as water and sanitation and green infrastructure, telecommunications and broadband network infrastructure."
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014D0466&from=EN)
Justification
Gas production and transportation should not be covered by the EU Guarantee given that it constitutes a fossil fuel subsidy. The Decision should put in place the conclusions of the European Council of 22 May 2013 to phase out environmentally or economically harmful subsidies, including for fossil fuels.
Amendment    16 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision 466/2014/EU Article 3 – paragraph 7 – subparagraph 4 a (new)
Text proposed by the Commission Amendment   EIB operations should inter alia integrate concrete actions to phase out financing projects detrimental to the achievement of Union's climate objectives and step up efforts to support renewable energy sources and energy efficiency.
Amendment    17 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 8 – subparagraph 1
Text proposed by the Commission Amendment EIB financing operations supporting the general objectives set out in point (d) of paragraph 1 shall back investment projects that address root causes of the migration and contribute to long-term economic resilience and safeguard sustainable development in beneficiary countries. EIB financing operations shall, in particular, address increased needs for infrastructure and related services to cater for the migrants influx, and boost employment opportunities for host and refugee communities to foster economic integration and enable refugees to become self-reliant. EIB financing operations supporting the general objectives set out in point (d) of paragraph 1 shall back investment projects that address root causes of the migration and contribute to long term economic resilience and safeguard sustainable development in beneficiary countries including strengthening humanitarian action and providing support for the construction of infrastructure and job creation while ensuring compliance with the SDGs. EIB financing operations shall, in particular, address increased needs for infrastructure and transport, energy and access to energy and telecommunications as these projects significantly increase the potential of trade and can have a leverage effect in the internationalisation of SMEs, especially in regions with geographical disadvantages, but also tap the potential in sectors such as agriculture, green technologies, research and innovation and property rights, as well as, strengthen humanitarian action, support the creation of decent jobs and education for host and refugee communities to foster economic integration and enable refugees to become self-reliant, while ensuring the full respect of human rights, in particular labour and social rights and the rule of law.
Amendment    18 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 8 – point b
Text proposed by the Commission Amendment (b)  the public sector, including municipalities and public sector entities, in terms of infrastructure and services to address significantly increased needs.’; (b)  the public sector, including municipalities and public sector entities, in terms of infrastructure and services, and particularly for health care and with special facilities for children, for sanitation services and school education, to address significantly increased needs.;
Justification
Medical treatment in particular of children, successful prevention of diseases by sufficient sanitary supplies, and provision of school education rank high among the needs for migrating children and their families.
Amendment    19 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c a (new) Decision 466/2014/EU Article 3 – paragraph 8 a (new)
Text proposed by the Commission Amendment   (ca)  the following paragraph is added:   8a.  SME-related programmes in third countries should be geared towards their integration into global supply chains, whereas, in the Eastern and Southern neighbourhood in particular, such EIB programmes should be oriented to the integration of SMEs into European value chains.
Amendment    20 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c b (new) Decision 466/2014/EU Article 3 – paragraph 8 b (new)
Text proposed by the Commission Amendment   (cb)  the following paragraph is added:   8b.  The EIB shall ensure that companies participating in projects co-financed by the EIB shall be required to adhere to the principle of equal pay and pay transparency and to the principle of gender equality as set out in Directive 2006/54/EC of the European Parliament and of the Council1a EIB decisions on project financing shall take into account action by candidate companies in the field of corporate social responsibility;   ______________   1a Directive 2006/54/EC of the European Parliament and of the Council1a of 5 June 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation (OJ L 204, 26.7.2006, p. 23).
Amendment    21 Proposal for a decision Article 1 – paragraph 1 – point 5 – point a Decision No 466/2014/EU Article 11 – paragraph 1 – point b
Text proposed by the Commission Amendment (b)  Indicators for projects providing strategic response addressing root causes of migration shall be developed by the EIB; (b)  Indicators for projects providing strategic response addressing root causes of migration shall be developed by the EIB, in detailed and regular consultation and cooperation with stakeholders and civil society;
Amendment    22 Proposal for a decision Article 1 – paragraph 1 – point 5 – point a a (new) Decision 466/2014/EU Article 11 – paragraph 1 – point c
Present text Amendment   (aa)  point (c) is replaced by the following: "(c)  an assessment of the contribution of EIB financing operations to the fulfilment of Union external policy and strategic objectives, taking into account the regional technical operational guidelines referred to in Article 5;" "(c)  an assessment of the contribution of EIB financing operations to the fulfilment of Union external policy and strategic objectives and of their coherence with other Union policies.   The Commission shall, in cooperation with the European External Action Service (EEAS), establish a framework and methodology for annual reporting by the EIB on its operations covered by the Community Guarantee and their compliance with the general principles guiding Union external action as referred in Article 21 TEU. The key objective of this reporting is to monitor the compliance of the EIB with TEU obligations and the Article 21 provisions, including respect and promotion of human rights, eradication of poverty, and the management of environmental risks.   This methodology shall be developed by the Commission and the EEAS during the first year following the entry into force of this amending Decision and will build on reporting on human rights compliance by the EIB, as requested by the EU Strategic Framework and Action Plan for Human Rights.   Based on the annual reporting from the EIB, the Commission shall produce each year for the European Parliament its own evaluation of the information provided by the EIB and suggest eventual changes in the policies and procedures followed by the Bank for adoption by the Member States after taking into account the opinion of the Parliament on them. Eventual recommendations by the European Commission and the European Parliament on how to improve EIB reporting to this end shall be reflected during the updating of the Regional Technical Operational Guidelines."
(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32014D0466&from=EN)
Justification
The main concern regarding EIB lending outside of the EU remains the operationalization on the ground of the provisions set out in the ELM. In this regard, building a mechanism of assessment of compliance with Article 21 of the TEU would be of prime importance to move the EIB to create and implement effective due diligence procedures in the screening of operations supported by the Bank with regard to their potential impact on human rights, poverty eradication and environment.
Amendment    23 Proposal for a decision Article 1 – paragraph 1 – point 5 a (new) Decision No 466/2014/EU Article 11 – paragraph 2
Present text Amendment   (5a)  in Article 11, paragraph 2 is amended as follows: 2.  For the purposes of the Commission's reporting referred to in paragraph 1, the EIB shall provide the Commission with yearly reports on EIB financing operations carried out under this Decision including all necessary elements allowing the Commission to report in accordance with paragraph 1. The EIB may also provide to the Commission additional information relevant for the European Parliament and the Council to have a comprehensive overview of EIB external activity. 2.  For the purposes of the Commission's reporting referred to in paragraph 1, the EIB shall provide the Commission with yearly reports on EIB financing operations carried out under this Decision including all necessary elements allowing the Commission to report in accordance with paragraph 1. The EIB may also provide to the Commission additional information relevant for the European Parliament and the Council to have a comprehensive overview of EIB external activity. The European Parliament may, on the basis of the yearly reports, draw up recommendations to the EIB concerning ongoing projects.
Amendment    24 Proposal for a decision Article 1 – paragraph 1 – point 6 Decision No 466/2014/EU Article 20
Text proposed by the Commission Amendment By 31 December 2021, the Commission shall present to the European Parliament and to the Council a final evaluation report on the application of this Decision. In order to strengthen parliamentary control, the governance structure of the EIB shall be reorganised in accordance with the strengthened governance scheme of the European Fund for Strategic Investments (EFSI). The Commission shall provide information on the implementation of that reorganisation by 31 December 2017. Furthermore, the EIB shall inform the European Parliament of its investment decisions, present impact assessments that show the compliance of planned projects with the SDGs and the Paris Agreement as well as publish reports on any project financed, the outcome of in-house investigations, the selection, supervision, and assessment of its activities and programmes based on clear measurable indicators, and the methods used for, and the findings of, ex ante assessments and ex post reports for every project financed, while respecting commercial sensitivity regarding private sector operations, especially with regards the reasons for rejection of projects submitted.   By 31 December 2021, the Commission shall submit to the European Parliament and to the Council a final evaluation report on the application of this Decision.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title	EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
References	COM(2016)0583 – C8-0376/2016 – 2016/0275(COD)
Committee responsible        Date announced in plenary	BUDG 6.10.2016
Opinion by        Date announced in plenary	INTA 6.10.2016
Rapporteur        Date appointed	Salvatore Cicu 12.10.2016
Discussed in committee	24.1.2017
Date adopted	28.2.2017
Result of final vote	+: –: 0:	29 4 2
Members present for the final vote	Laima Liucija Andrikienė, Maria Arena, Tiziana Beghin, David Campbell Bannerman, Daniel Caspary, Salvatore Cicu, Christofer Fjellner, Karoline Graswander-Hainz, Heidi Hautala, Bernd Lange, David Martin, Emmanuel Maurel, Emma McClarkin, Anne-Marie Mineur, Sorin Moisă, Artis Pabriks, Franck Proust, Tokia Saïfi, Marietje Schaake, Helmut Scholz, Joachim Schuster, Joachim Starbatty, Adam Szejnfeld, Hannu Takkula, Iuliu Winkler
Substitutes present for the final vote	Reimer Böge, Klaus Buchner, Sergio Gutiérrez Prieto, Sander Loones, Georg Mayer, Fernando Ruas, José Ignacio Salafranca Sánchez-Neyra, Pedro Silva Pereira
Substitutes under Rule 200(2) present for the final vote	Jean-François Jalkh, Joëlle Mélin

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

29	+
ALDE	Schaake Marietje, Takkula Hannu
ECR	Campbell Bannerman David, Loones Sander, McClarkin Emma, Starbatty Joachim
EFDD	Beghin Tiziana
PPE	Andrikienė Laima Liucija, Böge Reimer, Caspary Daniel, Cicu Salvatore, Fjellner Christofer, Pabriks Artis, Proust Franck, Ruas Fernando, Salafranca Sánchez-Neyra José Ignacio, Saïfi Tokia, Szejnfeld Adam, Winkler Iuliu
S&D	Arena Maria, Graswander-Hainz Karoline, Gutiérrez Prieto Sergio, Lange Bernd, Martin David, Maurel Emmanuel, Moisă Sorin, Schuster Joachim, Silva Pereira Pedro
VERTS/ALE	Buchner Klaus

4	–
ENF	Jalkh Jean-François, Mayer Georg, Mélin Joëlle
GUE/NGL	Mineur Anne-Marie

2	0
GUE/NGL	Scholz Helmut
VERTS/ALE	Hautala Heidi

Key:

+  :  in favour

-  :  against

0  :  abstentions

OPINION of the Committee on the Environment, Public Health and Food Safety (21.3.2017)

for the Committee on Budgets

on the proposal for a decision of the European Parliament and of the Council amending Decision No 466/2014/EU granting an EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
(COM(2016)0583 – C8‑0376/2016 – 2016/0275(COD))

Rapporteur: Aldo Patriciello

SHORT JUSTIFICATION

Context

The European Investment Bank (EIB) is the Union’s financing institution which contributes to European integration, development and cohesion by financing projects in support of EU policies. Although the majority of projects financed by the EIB are located within the Union, the EIB also carries out operations outside the Union. The Union has given to the EIB a number of mandates to perform certain lending operations under an EU budgetary guarantee covering the period 2014-2020, including the EIB external lending mandate (ELM) which covers the EIB operations outside the Union.

The rapporteur acknowledges that the Union, as a global actor, should take the lead in addressing climate change. Furthermore, he recognises that the EIB has made climate action one of its top priorities and developed a leading position among international finance institutions in this area by embedding these environmental priorities into the bank’s activities and actions within and outside the Union.

Over the period 2010-2014, the EIB provided more than EUR 90 billion to climate action projects, making the EIB one of the largest climate financiers globally.

EIB financing of climate change projects

Following the mid-term review of the current mandate, which takes into account the experiences gained over the 2014 to 2016 period, the rapporteur welcomes this legislative proposal adopted by the Commission on 14 September 2016.

This new proposal, built on past achievements and challenges encountered, makes reference to the Paris agreement adopted under the UN Framework Convention on Climate Change, where governments agreed to limit global warming to well below 2°C above pre-industrial levels and therefore to undertake rapid reductions of GHG emissions with the best available techniques.

Accordingly, by recognising the agreement as a milestone on the path towards a more sustainable economy worldwide, the rapporteur fully supports all actions needed to broadly align the external lending mandate’s aims and operations, including the new horizontal high-level objective recently added for addressing root causes of migration, with the UN Sustainable Development Goals. Such actions could contribute directly to some of these Goals, such as clean water and sanitation, affordable and clean energy, industry, innovation and infrastructure, sustainable cities and communities, climate action, decent work and economic growth.

The rapporteur welcomes the proposal particularly as regards the EIB´s aim to sustain the current high level of climate relevant spending under the ELM, contributing to increasing its climate related investment in developing countries from 25 % to 35 % by 2020.

Furthermore, the rapporteur supports the fact that the proposal sets out the following main elements:

  EIB financing operations, despite the vastly different situations of countries around the world, should back investment projects in climate change mitigation and adaptation that contribute to the overall objectives of the UN Framework Convention on Climate Change and of the Paris Agreement adopted under that Convention, in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy, energy efficiency and sustainable transport, or by increasing resilience to the adverse impacts of climate change on vulnerable countries, sectors and communities.

  Although the EIB has been the first international financial institution to systematically introduce a cost of carbon into its project appraisal, the eligibility criteria for climate action projects should be those defined in the EIB climate change strategy which was updated in 2015. On the basis of the methodologies for the assessment of project greenhouse gas emissions and emission variations drawn up by the EIB, an analysis of the carbon footprint should be included in the environmental assessment procedure to determine whether project proposals optimise energy-efficiency improvements.

  Over the period covered by this decision (2014-2020), the EIB should endeavour to sustain the current high level of climate-relevant operations, while the minimum volume of those operations should represent at least 25 % of the total EIB financing operations.

  The EIB should enhance the adaptation elements in its contribution to climate change projects.

AMENDMENTS

The Committee on the Environment, Public Health and Food Safety calls on the Committee on Budgets, as the committee responsible, to take into account the following amendments:

Amendment    1 Proposal for a decision Recital 2
Text proposed by the Commission	Amendment
(2)  A new results-oriented partnership framework with third countries which takes account of all Union policies and instruments should be developed. As part of that new partnership framework, the External Investment Plan should be established in order to support investments in regions outside the Union, while contributing to the achievement of the sustainable development goal. It should also fulfil the objectives of the 2030 Agenda for Sustainable Development and the objectives pursued by the other financing instruments for external action.	(2)  A new results-oriented partnership framework with third countries which takes account of all Union policies and instruments should be developed. As part of that new partnership framework, the External Investment Plan should be established in order to support investments in regions outside the Union, while contributing to the achievement of the sustainable development goal. It should also fulfil the objectives of the 2030 Agenda for Sustainable Development, the Paris Agreement adopted under the United Nations Framework Convention on Climate Change and the objectives pursued by the other financing instruments for external action.
Justification
With the Paris Climate Agreement, governments agreed to limit global warming to well below 2°C above pre-industrial levels and therefore to undertake rapid reductions of GHG emissions with the best available techniques. They also committed to support developing countries in their effort toward climate change adaptation.
Amendment     2 Proposal for a decision Recital 13
Text proposed by the Commission	Amendment
(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change4, the EIB should aim to sustain the current high level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020.	(13)  Following the Paris Agreement adopted under the United Nations Framework Convention on Climate Change4, the EIB should aim to sustain the current high level of climate relevant spending under the ELM, contributing to increasing its climate-related investment in developing countries from 25 % to 35 % by 2020. In addition, the EIB should work to phase out the financing of projects that do not contribute to the Union's climate objectives and the transition to a low-carbon economy.
_________________	_________________
4 Council Decision (EU) 2016/590 of 11 April 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 103, 19.4.2016, p. 1).	4 Council Decision (EU) 2016/590 of 11 April 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 103, 19.4.2016, p. 1).
Amendment     3 Proposal for a decision Article 1 – paragraph 1 – point 2 – point b b (new) Decision No 466/2014/EU Article 3 – paragraph 6
Present text Amendment   (b b)  paragraph 6 is replaced by the following: "6. EIB financing operations supporting the general objective set out in point (b) of paragraph 1 shall support investment projects predominantly in the areas of transport, energy, environmental infrastructure, information and communication technology, health and education. This includes production and integration of energy from renewable sources, energy systems transformation enabling a switch to lower carbon intensive technologies and fuels, sustainable energy security and energy infrastructure, including for gas production and transportation to Union energy market, as well as electrification of rural areas, environmental infrastructure such as water and sanitation and green infrastructure, telecommunications and broadband network infrastructure." "6. EIB financing operations supporting the general objective set out in point (b) of paragraph 1 shall support investment projects predominantly in the areas of transport, energy, environmental infrastructure, information and communication technology, health and education. This includes production and integration of energy from renewable sources, energy systems transformation enabling a switch to lower carbon intensive technologies and fuels, sustainable energy security and energy infrastructure, including for electrification of rural areas, environmental infrastructure such as water and sanitation and green infrastructure, telecommunications and broadband network infrastructure. EIB financing operations shall not contribute to new coal-fired energy generation nor increase coal-dependency."
(http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1488461953197&uri=CELEX:02014D0466-20160926)
Justification
Aligning the conditions for EIB financing operations in the energy area to the Parliament position regarding ETS support for modernisation of the energy sector. Financing projects for gas production and transportation to Union energy market should not be in the scope of the instrument that aims to tackle root causes of migration by contributing to the achievement of the sustainable development goals.
Amendment    4 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 7 – subparagraph 1
Text proposed by the Commission Amendment EIB financing operations supporting the general objectives set out in point (c) of paragraph 1 shall back investment projects in climate change mitigation and adaptation that contribute to the overall objectives of the United Nations Framework Convention on Climate Change and of the Paris Agreement adopted under that Convention, in particular by avoiding or reducing greenhouse gas emissions in the areas of renewable energy, energy efficiency and sustainable transport, or by increasing resilience to the adverse impacts of climate change on vulnerable countries, sectors and communities. By recognising climate change as the greatest global challenge of our time, and in order to avoid that climate risk seriously undermines efforts already undertaken to improve welfare, in particular in the world´s poorest regions, EIB financing operations supporting the general objectives set out in point (c) of paragraph 1 shall back investment projects in climate change mitigation and adaptation that contribute to the overall objectives of the United Nations Framework Convention on Climate Change and of the Paris Agreement adopted under that Convention. In particular, those ambitious targets shall be carried out by avoiding or reducing greenhouse gas emissions in the areas of renewable energy, energy efficiency and sustainable transport, or by increasing resilience to the adverse impacts of climate change on vulnerable countries, sectors and communities.
Justification
One of the key hurdles in the fight against climate change is to enable the investments required in this transition, especially in the world´s poorest regions. It is important to develop innovative climate financing solutions, addressing market failure and seizing opportunities to attract private finance, including through the capital market
Amendment     5 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 7 – subparagraph 3
Text proposed by the Commission Amendment Over the period covered by this decision, the EIB should endeavour to sustain the current high level of climate-relevant operations, while the minimum volume of those operations shall represent at least 25 % of the total EIB financing operations. Over the period covered by this decision, the EIB should endeavour to sustain a high level of climate-relevant operations, the volume of which shall represent at least 25 % of the total EIB financing operations outside the Union, gradually increasing that target to at least 35 % by 2020.
Amendment    6 Proposal for a decision Article 1 – paragraph 1 – point 2 – point c Decision No 466/2014/EU Article 3 – paragraph 7 a (new)
Text proposed by the Commission Amendment   ‘7a.  Climate considerations shall be properly taken into account across all activities carried out by the EIB External Lending Mandate to ensure that gains are made whenever possible and feasible. Despite the significant lending volumes and broad sectorial spread of the projects supported, further efforts shall be made in order to make EIB environmental actions and mainstreaming tools more effective, in particular by broadly extending, where possible, coverage of sector policies and by developing the assessment of climate risk and vulnerability.’
Justification
Integrating climate change considerations across all EIB standards, methods and processes will help to reinforce the environmental impact of EIB financing activities.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title	EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
References	COM(2016)0583 – C8-0376/2016 – 2016/0275(COD)
Committee responsible        Date announced in plenary	BUDG 6.10.2016
Opinion by        Date announced in plenary	ENVI 6.10.2016
Rapporteur        Date appointed	Aldo Patriciello 13.10.2016
Discussed in committee	27.2.2017
Date adopted	21.3.2017
Result of final vote	+: –: 0:	54 1 0
Members present for the final vote	Marco Affronte, Margrete Auken, Zoltán Balczó, Ivo Belet, Biljana Borzan, Paul Brannen, Soledad Cabezón Ruiz, Nessa Childers, Birgit Collin-Langen, Mireille D’Ornano, Miriam Dalli, Seb Dance, Angélique Delahaye, Stefan Eck, Bas Eickhout, José Inácio Faria, Francesc Gambús, Gerben-Jan Gerbrandy, Jens Gieseke, Julie Girling, Sylvie Goddyn, Françoise Grossetête, Jytte Guteland, György Hölvényi, Anneli Jäätteenmäki, Benedek Jávor, Karin Kadenbach, Kateřina Konečná, Urszula Krupa, Giovanni La Via, Peter Liese, Norbert Lins, Valentinas Mazuronis, Gesine Meissner, Susanne Melior, Miroslav Mikolášik, Piernicola Pedicini, Pavel Poc, Julia Reid, Frédérique Ries, Michèle Rivasi, Annie Schreijer-Pierik, Davor Škrlec, Renate Sommer, Estefanía Torres Martínez, Nils Torvalds, Adina-Ioana Vălean, Damiano Zoffoli
Substitutes present for the final vote	Guillaume Balas, Nicola Caputo, Carlos Zorrinho, Elżbieta Katarzyna Łukacijewska
Substitutes under Rule 200(2) present for the final vote	Jan Keller, Arne Lietz, Stefano Maullu

FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

54	+
ALDE	Gerben-Jan Gerbrandy, Anneli Jäätteenmäki, Valentinas Mazuronis, Gesine Meissner, Frédérique Ries, Nils Torvalds
ECR	Julie Girling, Urszula Krupa
EFDD	Piernicola Pedicini
ENF	Mireille D'Ornano, Sylvie Goddyn
GUE/NGL	Stefan Eck, Kateřina Konečná, Estefanía Torres Martínez
NI	Zoltán Balczó
EPP	Ivo Belet, Birgit Collin-Langen, Angélique Delahaye, José Inácio Faria, Francesc Gambús, Jens Gieseke, Françoise Grossetête, György Hölvényi, Giovanni La Via, Peter Liese, Norbert Lins, Elżbieta Katarzyna Łukacijewska, Stefano Maullu, Miroslav Mikolášik, Annie Schreijer-Pierik, Renate Sommer, Adina-Ioana Vălean
S&D	Guillaume Balas, Biljana Borzan, Paul Brannen, Soledad Cabezón Ruiz, Nicola Caputo, Nessa Childers, Miriam Dalli, Seb Dance, Jytte Guteland, Karin Kadenbach, Jan Keller, Arne Lietz, Susanne Melior, Pavel Poc, Damiano Zoffoli, Carlos Zorrinho
Verts//ALE	Marco Affronte, Margrete Auken, Bas Eickhout, Benedek Jávor, Michèle Rivasi, Davor Škrlec

1	-
EFDD	Julia Reid

0	0

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention

PROCEDURE – COMMITTEE RESPONSIBLE

Title	EU guarantee to the European Investment Bank against losses under financing operations supporting investment projects outside the Union
References	COM(2016)0583 – C8-0376/2016 – 2016/0275(COD)
Date submitted to Parliament	14.9.2016
Committee responsible        Date announced in plenary	BUDG 6.10.2016
Committees asked for opinions        Date announced in plenary	AFET 6.10.2016	DEVE 6.10.2016	INTA 6.10.2016	ECON 6.10.2016
	ENVI 6.10.2016
Not delivering opinions        Date of decision	ECON 12.10.2016
Rapporteurs        Date appointed	Eider Gardiazabal Rubial 10.10.2016
Date adopted	27.3.2017
Result of final vote	+: –: 0:	28 3 0
Members present for the final vote	Nedzhmi Ali, Jean Arthuis, Reimer Böge, Lefteris Christoforou, Eider Gardiazabal Rubial, Jens Geier, Ingeborg Gräßle, Iris Hoffmann, Monika Hohlmeier, Bernd Kölmel, Zbigniew Kuźmiuk, Clare Moody, Siegfried Mureşan, Jan Olbrycht, Paul Rübig, Patricija Šulin, Eleftherios Synadinos, Inese Vaidere, Tiemo Wölken, Stanisław Żółtek
Substitutes present for the final vote	Nicola Caputo, Heidi Hautala, Ivana Maletić, Marco Valli
Substitutes under Rule 200(2) present for the final vote	Iratxe García Pérez, Ramón Jáuregui Atondo, Luigi Morgano, Inmaculada Rodríguez-Piñero Fernández, Fernando Ruas, Ramón Luis Valcárcel Siso
Date tabled	31.3.2017

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

28	+
ALDE	Nedzhmi Ali, Jean Arthuis
ECR	Zbigniew Kuźmiuk, Bernd Kölmel
PPE	Reimer Böge, Lefteris Christoforou, Ingeborg Gräßle, Monika Hohlmeier, Ivana Maletić, Siegfried Mureşan, Jan Olbrycht, Fernando Ruas, Paul Rübig, Inese Vaidere, Ramón Luis Valcárcel Siso, Patricija Šulin
S&D	Nicola Caputo, Iratxe García Pérez, Eider Gardiazabal Rubial, Jens Geier, Iris Hoffmann, Ramón Jáuregui Atondo, Arndt Kohn, Clare Moody, Luigi Morgano, Inmaculada Rodríguez-Piñero Fernández, Tiemo Wölken
Verts/ALE	Heidi Hautala

3	-
EFDD	Marco Valli
ENF	Stanisław Żółtek
NI	Eleftherios Synadinos

0	0

Key to symbols:

+  :  in favour

-  :  against

0  :  abstention