eeef Impact Report 2021

Contents Introduction Introduction letter from the European Energy Efficiency Fund The eeef in 2021 Joining forces to promote sustainable projects in Lithuania EU Taxonomy Regulation and Sustainable Finance Disclosure Regulation Now or Never Fund Overview Activities report: the eeef’s investments The eeef’s matured investments Carbon, Environment & Impact Management Project assessment and monitoring Social and environmental management system (SEMS) Primary energy and greenhouse gas emissions savings 2021 4 4 8 8 10 12 14 16 30 32 34 35 36 Taxonomy alignment BlueMark verification eeef contribution to Sustainable Development Goals Population reached through eeef investment activities Population reached through eeef Technical Assistance Facility activities Technical Assistance Facility The eeef’s Technical Assistance Facility Imprint 38 40 41 42 43 44 46 58 ‘We set up the eeef some 10 years ago to become a sustainable business model. I am happy to see the eeef developments, which have been achieved in the last decade on that from the start, where everything just happened from one idea.’ Ralf Goldmann, EIB Head of Energy Efficiency and Energy Advisory Division Contents 3

Introduction letter from the European Energy Efficiency Fund Dear Reader, Over the past ten years, the European Energy Efficiency Fund (the eeef ), in line with European Union (EU) objectives, continued to support EU’s climate goals and promote a sustainable energy environment by leveraging private and public funds into energy efficiency, renewable energy and clean urban transport measures in the Member States of the European Union. eeef qualifies, within the SFDR Prod- uct Category, as a Dark Green Fund with environmentally sustainable investments which take into account the EU criteria for environmentally sustainable economic activities pursuant to Article 3 of the EU Taxonomy Regulation. eeef’s stakehold- ers can closely monitor economic activities of the Fund and follow the progress of eeef in achieving climate goals in the Fund’s Impact Report, which was previ- ously known as Annual Report. We have decided to share more details on impact of our projects in the future and will target to incorporate additional information every year. Through the end of 2021, eeef achieved total accumulated savings of 605,312 tCO2e and 847,549 MWh of primary energy savings compared to baseline. A highlight of 2021 was the closing of a EUR 10 million transaction together with the Public Investment Development Agency (VIPA) of Lithuania. VIPA and eeef agreed to set up a “Sustainable Resources Development” platform, which focuses on the financing of sustainable investments contributing to the direct effects of climate change mitigation. The objective of the platform is to finance renew- able energy and energy efficiency projects, with projects in the public and private sectors eligible for funding. The platform will have a significant impact on both primary energy and carbon savings with the projects generating at least 30 % of primary energy savings and / or CO2 emission savings compared to the baseline. The platform plans to raise funding up to EUR 37 million. It is likely to deliver ca. 6,590 tCO2e reduction in CO2 emissions as per preliminary estimates which should rep- resent approx. 78.7 % savings compared to current baseline, once fully deployed in projects. More information about this investment can be found on page 8. In October 2021, two public energy redevelopment projects entered Illuminated Cities, a Joint Ven- ture (JV) of eeef and Siram Veolia. The JV allows new small municipalities to attract private exper- tise and capital to finance, implement and manage works of public interest. With these investments, Illuminated Cities becomes a partner of the Municipalities of Nogara and Concordia Sagittaria, in the province of Verona and Venice respectively. They join the Municipality of Rozzano, in the prov- ince of Milan, which is an active project in the joint venture's portfolio. The investments aim at the adoption of high added-value technologies, ranging from the upgrading of obsolete electrical, and thermal systems in public buildings to the production of energy from renewable sources, the instal- lation of LED street lighting and street furniture, remote control systems, remote management and electric mobility services. Based on total investment of approximately 6 million euros, the authorities will achieve savings in the energy consumption and energy bill, with a consequent dual reduction, 4 eeef Impact Report 2021

of the environmental impact as well as the energy expenses. In total, two new redevelopment pro- jects will generate an estimated amount of 4,971 MWh of primary energy savings and 746 tCO2e of carbon savings per year in comparison to the baseline. The characteristics of Illuminated Cities make it possible to finance even small-scale initiatives on a single project basis, which the tradi- tional approach of project finance typically excludes, as well as significantly reducing the costs of structuring operations. Through the course of 2021, eeef also completed the first collaborative project with the European Investment Bank (EIB) in the frame of the eeef’s Technical Assistance Facility (TAF). TAF was set up at the end of 2016 to support public authorities in preparing sustainable energy investment programmes and received funding from both eeef and the European Local Energy Assistance Facil- ity (ELENA) managed by the EIB on behalf of the European Union. Between 2017 and 2021 eight public beneficiaries across Spain, Italy and Lithuania worked with eeef under this facility. Over EUR 125.6 million of commercially viable investments have been successfully identified and some of these already started implementation. In total, these eight projects will result in estimated pri- mary energy savings of 49,439 MWh (45.3 %) and a reduction in CO2 emissions of 15,522 tCO2e (46.8 %) compared to baseline. The fund will therefore further apply for new funding programmes from EIB and continue its activities with the European cities and regions to develop interventions in energy efficiency, public transportation and renewable energy consistent with the EU Taxonomy. To provide an independent and transparent assessment of the eeef’s impact strategy, third-party verification by BlueMark was conducted, which reviewed the alignment of the eeef’s portfolio and investment practices with the Operating Principles for Impact Management. The Principles were launched in 2019 by a group of signatories including the International Finance Corporation as one of the founders, part of the World Bank Group. The verification report is accessible to all stakehold- ers from the eeef website and shows the pathway to keep up the fund’s investment policies to the highest recognized industry standards. “On behalf of the eeef Board of Directors, we want to put eeef at the service of the European goals for the energy transition. We believe that the fund, which combines public and private resources, represents a key player in support of energy efficiency investments in Europe, which are increas- ingly needed in this crucial time” says Giorgio Chiarion Casoni, Chairman of the Board of Directors. The Fund will continue to intensify partnerships with municipalities, cities, regional authorities to enable projects to come to fruition to ensure that climate change projects receive the priority that they require for Europe to achieve ambitions of sustainability agendas, specifically greenhouse gas emission reduction goals. The Fund will ensure that all of its impact activities as well as do not sig- nificant harm activities are reported in accordance with the regulatory requirements defined by the European Union going forward. The European Energy Efficiency Fund Introduction 5

1 The Public Investment Development Agency (VIPA) of Lithuania and eeef agreed to set up “Sustainable Resources Development ” platform, which focuses on the financing of sustainable investments. Siram Veolia and eeef partner- ship acquired two new public energy redevelopment projects in the Municipalities of Nogara and Concordia Sagittaria. 2 3 eeef Technical Assistance Facility successfully completed its com- mitments towards ELENA for fun- ding Project Development Services (PDS) under the ELENA Contract. eeef’s impact management system was independently verified by Blue- Mark, a leading provider of impact verification services in the impact investing market. 4

Joining forces to promote sustainable projects in Lithuania During the 2nd half of 2021, the European Energy Efficiency Fund (eeef) and Lithuanian National Promotional Institution and Public Investment Development Agency, Viesuju Investiciju Pletros Agentura (VIPA), signed a EUR 12 million equity deal for a term ending March 2034 to support Lithuania’s Investment Platform Tvarių Išteklių Plėtros Skatinimas (TIPS) focused on promoting Sustainable Resource Devel- opment. TIPS will receive EUR 10 million in equity from the eeef and, the remaining, EUR 2 million from VIPA’s own capital. Additionally, TIPS plans to attract lenders for ca. EUR 25 million, thereby, raising EUR 37 million in total. The funding with benefit small to medium scale investments in public and pri- vate projects in the field of energy efficiency and renewable energy across Lithuania. Since inception, the eeef has been supportive of EU’s climate goals of promoting sustainable energy market and fostering climate protection in a collaborative approach – contributing to climate change mitigation and combining private and public capital for climate-related investments. Engagement with VIPA on TIPS is yet another example of this approach where eeef contributes with a decade-long experience in financing energy efficiency and renewable energy projects across EU member states whereas VIPA drives the Investment Platform with a strong grip on the local needs and an extensive network of stakeholders who believe in creating a more sustainable future. Furthermore, TIPS is a unique initiative as it is dedicated to the promotion of a wide range of sus- tainable investments at the public level, where the interests of VIPA and eeef are aligned to facili- tate and speed up the energy transition in Lithuania. Moreover, This approach allows to aggregate smaller loans into a sizable portfolio. Accordingly, TIPS is engaged in an aggressive modus operandi and is planning targeting to showcase a portfolio of strong sustainable investments by end of 2023. It is envisaged that the portfolio will comprise of projects contributing to energy transition and to the renovation of the existing infrastructure. Additionally, the investment criteria will include, among others, Primary energy savings ≥ 30 % (for energy efficiency projects) and CO2 emission reduction ≥ 30 %. Each individual project will be of small to medium scale and TIPS will catalyze developers to co-financing 20 % of the investment value. 8 eeef Impact Report 2021

To give a few examples, TIPS is offering loans of 10-year tenure for up to 80 % of the investment value for projects concerning the installation of solar power plants for own use. Likewise, similar loans are available for the development of solar farms for sale to “prosumers”, for the implemen- tation of various energy-saving solutions such as lighting network projects and for the renovation of public buildings. Till date, TIPS received a strong traction from the market with a pipeline of projects covering solar and wind energy, energy efficiency in street lighting and industry and renovation in public and multi-apart- ment buildings. TIPS Investment Committed has already approved financing of over EUR 6 million to 6 projects. Together, these projects will deliver ca. 10.29MWp of power output along with reducing an- nual emission by 1,212 tCO2e for producing the same amount of electricity, and thus will contribute to eliminating the effects of climate change. When EUR 37 million are fully deployed in projects, TIPS is likely to deliver ca. 6,590 tCO2e reduction in CO2 emissions as per preliminary estimates which should represent approx. 78.7 % savings compared to current baseline. “The fact that our funded projects are gaining continuity shows that sustainable investment is attrac- tive and that services provided by solar farms are in demand. We have been increasing energy effi- ciency together with developers, individuals and entrepreneurs who choose green energy, thus creat- ing a more sustainable future”, says Asta Gladkauskien, Head of VIPA’s Private Customer Department. With this lighthouse investment in TIPS, the eeef is not only looking to develop a sustainable invest- ment portfolio in Lithuania but also to demonstrate a framework for public-private collaboration to support EU’s climate goals at the European level. VIPA is a national promotional institution established by the Government of the Republic of Lithuania, which operates in the fields of development of urbanized or urbanizing areas, housing and renovation and development of public or public interest infrastructure, and promotion of energy efficiency. The eeef in 2021 9

EU Taxonomy Regulation and Sustainable Finance Disclosure Regulation The EU Sustainable Finance Action Plan paves the way for a stringent regulatory environment, with creation of new regulations and amendments to current directives. Regulation 2020 / 852 (“the Taxonomy Regulation”) and Sustainable Finance Disclosure Regulation (“SFDR”) are important pillars of the Action Plan and are tasked to increase transparency for all financial market participants and financial advisors, while at the same time promoting sustainable finance products in the EU. The next passages will extensively cover what is entailed in both the EU Taxonomy and the SFDR. Then, the article will delve deep into the symbiotic relationship between the two Regulations and the chal- lenges in their implementation. EU Taxonomy provides a classification of economic activities, and this paragraph will explain how it came into effect, and its content thereof. The European Council together with the European Parliament reached a milestone agreement on a bill of a proposed Regulation on the establishment of a Frame- work to facilitate sustainable investment. This was later known in common terms as the Taxonomy Reg- ulation. The Taxonomy Regulation was published in the Official Journal of the EU on June 22, 2020, following its adoption by the European Parliament on June 18, 2020, and came into force on July 12, 2020.1 It provides laid down guidelines to investors and businesses to identify what economic activi- ties can be considered environmentally sustainable. It seeks to “provide clarity and transparency on environmental sustainability to investors, financial institutions, companies and issuers thereby ena- bling informed decision-making in order to foster investments in environmentally sustainable activ- ities.”2 It is the first step of a very ambitious project of the EU, aiming to establish a full classification of sustainable economic activities based on standards endorsed by regulation. The project started with the classification of environmental sustainability, focusing on two environmental objectives: cli- mate change mitigation and adaptation. Others included in the Taxonomy are (i) “do no significant harm” (DNSH) – the principle of which considers the investment to be ‘sustainable’ if it contributes to an environmental or social objective and does not significantly harm any other environmental or so- cial objective as set out in the Regulation; (ii) avoiding violation of minimum “social safeguards”; (iii) compliance with technical “screening criteria”.3 EU’s regulatory body has set a quantitative threshold for every activity listed. Each activity is checked whether it has environmental objectives and is taxon- omy-aligned only if it performs the threshold. The Regulation contemplates a phased implementation, with certain rules set to apply from different dates.4 The Taxonomy is connected to and will support disclosure requirements under the Sustainable Finance Disclosure (SFDR) regulation. SFDR regulations came into force in March 2021 and created a system, where every offered financial product in the EU must publish qualitative and quantitative information about the impact of their investments on sustainability. It plays a very pivotal role in the EU´s quest to regulate sustainable finance. This regulation is applicable to every asset manager that offers financial products in the EU. Fund managers subject to it must disclose in their reports and websites how they tackle sustainability risk and the Principal Adverse Impacts (PAIs) of their investments on sustainabil- ity factors. Extensive disclosures are mandated at the product level. Under SFDR, financial products can be labelled either as Article 6, 8 or 9. Article 6, covers conventional financial products, which do not pursue sustainability as their primary goal but nevertheless, they must disclose how sustainability risks are integrated into their decision-making in investment and their PAIs on sustainability factors. Article 8, defined as “Light Green” products that promote environmental and / or social characteris- tics amongst other characteristics with the companies in which the investments are made have good governance practices. Article 9, referred to “Dark Green” products with sustainable investment as their core objective and is directly connected with the EU Taxonomy with “sustainable investment as its objective”.5 Sustainable funds must adhere to the regulation of investment in economic activities 10 eeef Impact Report 2021

that contribute to environmental objectives.6 There must be detailed information on how these objec- tives will be met, including methodology, measurement and monitoring of a sustainable investment. Furthermore, the investment in this area should seek to cause no significant harm to the environment and must align to at least one of the criteria outlined in the EU Taxonomy Regulation. The EU commis- sion specified that Article 9 funds may also include investment in hedging or liquidity provided they meet the bare minimum requirement towards environmental and social safeguards.7 By doing this, they will be in tandem with the sustainable investment objective. In a nutshell, the EU Taxonomy Reg- ulation provides a classification of economic activities, while the SFDR defines Environmental, Social and Governance (ESG) reporting obligations for financial market participants. Although SFDR is in its second year of implementation, a lot remains to be done because the desired and intended objective is yet to be fully met. One can, however, not dispute the fact that it has helped investors understand and compare sustainability attributes of investment funds, but what remains limited is data needed for compliance. It is not just the availability of data that is proving to be a hin- drance but also the costs associated with acquiring such data to comply with the SFDR requirements. Another factor that is proving to be a hindrance is the incomplete implementation of SFDR and sustain- able finance rules, especially those that touch on ESG reporting. EU commission has often postponed rules touching on the implementation of SFDR disclosure, the uncertainty of which has been due to its application and interpretation. However, this is expected to change positively because January 1st, 2023, has now been set as the beginning of the application of the SFDR implementing rules. This will provide fund managers with more legal certainty on the disclosure requirements.8 In summary, proper implementation of SFDR will be paramount in transitioning the EU to low carbon and more sustainable future. The Taxonomy can be of greater help for fund managers to ascertain, which activities an SFDR titled fund can invest in. It provides laid groundwork as to which activities are best fit for funds, aimed at promoting environmental attributes. Furthermore, disclosures in a fund’s prospectus, by referring to Article 9 and Article 8 will go a long way to dispel the notion that funds are greenwashed. Only investing in eligible activities will not suffice as fund managers must use Taxo nomy criteria in assessing the alignment of their sustainable investment, especially in Article 9 funds. Nevertheless, the EU’s Taxonomy alignment is going to be the cardinal point in ascertaining whether activities and products are indeed within the spectrum of sustainability. To conclude, it is important to note that disclosure obligations can only go that far, of utmost importance will be the political good- will within the EU to fully champion a transition to a sustainable economy. 1 https://eur-lex.europa.eu / legal-content / EN / TXT/?uri=CELEX%3 A32020R0852 (access on 23rd August 2022) 2 https://ec.europa.eu / info / sites/info/files/business_economy_euro/banking_and_finance/documents/sustainable-finance-taxonomy- spotlight_en.pdf 3 https://www.aima.org/article/overview-of-the-eu-taxonomy-regulation.html#:~:text=The%20Taxonomy%20Regulation%20establishes%20an%20 EU-wide%20classification%20system,degree%20economic%20activities%20can%20be%20considered%20environmentally%20sustainable 4 Taxonomy Regulation, Article 27 “Entry into force and application” 5 https://www.mdpi.com/2071-1050/13/21/12316/htm 6 https://www.gresb.com/nl-en/eu-regulatory-environment-changes-sfdr-eu-taxonomy/ 7 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32020R0852&from=EN 8 https://paperjam.lu/article/the-eu-sfdr-one-year-on (access on 23rd August 2022) The eeef in 2021 11

Now or Never By Rahul Pratap Singh Such was the reaction of the UN SecretaryGeneral, António Guterres, on 4th April 2022, at the release of the latest report “Climate Change 2022: Mitigation of Climate Change” by the Intergovernmental Pan- el on Climate Change (IPCC). Climate change is the result of over a century of unsustainable energy and land use and of patterns of unsustainable consumption and production. Every day, the atmosphere is being doped with high GHG emissions which is leading to increased frequency, intensity and duration of extreme events that are reigning down blows on billions of people and threatening economies for trillions of Euros in losses. So, kicking the can down the road on climate change and adaptation will not help. In fact, it will drive our precious ecosystems towards extinction and the planet towards a climate disaster. Continuing the status quo The average annual GHG emission in 2019 stood at 54 % above than emissions in 1990 – the high- est level ever in the human history. Adjusting for global policies that were implemented by Dec-2020, it could be extrapolated that without strengthening mitigation efforts, GHG emissions are projected to lead to warming of 3.2 °C. If the global economies must keep their promise of a sustainable planet and keeping the global temper- ature rise to 1.5 °C, a clear pathway for each nation and concentrated efforts are a pre-requisite. Each country with their SDGs needs to decrease emissions for several years at consistent rates. Cities need net-zero emission targets and work towards net-zero energy infrastructure. Furthermore, the political will needs to be reinforced with policies to enhance energy efficiency and deployment of renewable energy. Defining of the objective In the scenario of limiting warming to 1.5 °C, IPCC’s assessment is that GHG emission should peak before 2025, at the latest, and be reduced by 43 % by 2030. And, even if we do this, it is almost inevitable that we will at least temporarily exceed 1.5 °C warming, but we could return below these levels by the end of the century. Furthermore, the temperature will stabilize when we reach net-zero CO2 emissions. So, to limit warming to 1.5 °C, requires reaching net zero CO2 emission in the early 2050. Contribution from sectors Many sectors offer possibilities to lower emissions by 2030 while respecting to limiting warming to 1.5 °C. The energy sector, for example, accounts for about 1 / 3 of all global emissions. Major transitions in this sector would require substantial reduction in fossil fuel use, low carbon energy systems, wide- spread electrification, use of alternative fuels, use of carbon capture, deployment of energy efficiency and adoption of digital technologies. If we look at the transport sector, significant reduction in emissions can be achieved by lowering demand and adopting low carbon technologies. Electric vehicles, for example, offer the greatest potential to lower emissions when combined with low carbon electricity sources. Furthermore, advances in battery technologies can assist in electrification of trucks and buses, which could complement conventional electric rail systems. Not to forget that our cities account for more than 2 / 3 of global emissions and there is significant poten- tial for emission reduction. It is necessary to move towards sustainable consumption and production of goods and services, electrification, and improving carbon uptake and storage. If buildings are to reach net zero emission by 2050, the seed needs to be sown now. This would involve retrofitting building at 12 eeef Impact Report 2021

“This is not fiction or exaggeration. It is what science tells us will result from our current energy policies. We are on a pathway to global warming of more than double the 1.5-degree limit” that was agreed in Paris in 2015. ... If you care about justice, and our children’s future, I am appealing di- rectly to you: Demand that renewable en- ergy is introduced now – at speed and at scale. Demand an end to coal-fired power. Demand an end to all fossil fuel subsidies.” faster rates, using new mitigation technologies and incorporating efficient building designs to combine space, energy, material and renewables. When it comes to reducing emissions in industry, material and energy should be used efficiently along with reusing and recycling products and minimizing waste. The sector accounts for ¼ of global emis- sions and achieving net zero will be challenging. It will require new production processes, low emission electricity, carbon capturing, storage, among others. Low GHG production process for basic materials and chemicals should emerge and achieve commercial success. Agriculture, forestry and other land use can provide large scale emissions reductions plus store CO2. The solution is simple – protecting and restoring natural ecosystems such as forests and natural green cover. Land can only do so much but cannot cross compensate for delayed emission reduction in other sectors. Regulatory, economic instruments and policies Regulatory, economic instruments and policies play a critical role in strengthening the response to cli- mate change. The measures range from standards for vehicle efficiencies, building codes, to policies for industrial decarbonization to taxation on carbon and emission trading system. Such measures have already proved effective in reducing emission. It is important to bear in mind that rather than individual policy instrument, policy packages and economy wide packages are better able to achieve systemat- ic change. Effective mitigation requires coordination across governments and implementing strategies based on consensus among stakeholders – societies, citizens, professional bodies and businesses. Investment in-flows While climate and clean energy commitments are strengthened, public budgets are ever constraints. Thus, investors should be prepared to offer the leverage effect to demonstrate support for sustainable ener- gy financing and reinforces investments that helps protect our climate and bringing economic benefits. Climate mitigation offers investment opportunities within these sectors. The support from the financial sector needs to be increased 6 folds by 2030 and there is sufficient global capital and liquidity to close this gap. Decrease in emissions is dependent on the interplay of investments in energy efficiency im- provements and low-carbon technology deployment. With rising attention from the investor community, significant inroads have been accomplished in the energy efficiency and renewable energy sector. For example, since the turn of the century, market cost per unit of technologies have decreased steadily and the prices have fallen below those of fossil fuels. Conclusion There should be no astonishment that unchecked unsustainable development practices have increased exposure of people and ecosystems to climate change. At the present rate of GHG emissions, the planet may soon arrive at a point of no return for centuries. So, it is our moral responsibility to act now while we have an opportunity window available to us. Political resolve, sectorial contributions and investment in- flows have to synchronize to ensure that we can proudly handover this planet to the future generations. The eeef in 2021 13

Fund Overview Current division of investments committed to the eeef 2.3 m (1.8 %) Cassa Depositi e Prestiti S.p.A. 2.9 m (2.3 %) European Investment Bank 106.7 m (84.1 %) European Commission** 126.9 million euros total 5 m (3.9 %) DWS Group* 10.0 m (7.9 %) DBU Shareholder structure based on called amounts, excluding repayments and capitalised dividends 150.1 million euros total 97.0 m (64.6 %) European Commission (EC) 21.2 m (14.1 %) European Investment Bank (EIB) 16.9 m (11.3 %) Cassa Depositi e Prestiti S.p.A. (CDP) 5.0 m (3.3 %) DWS Group* 10.0 m (6.7 %) DBU * The shares belong to WEPLA Beteiligungsgesellschaft mbH – an investment company holding investments in funds that are managed by DWS Group GmbH & Co. KGaA (DWS). ** Including capitalised dividends for C Shares as of 31.12.2021 14 eeef Impact Report 2021

Investments by Country * 1.6% Great Britain 6.1% Netherlands 10.0% Lithuania 1.1% Germany 8.9% France 12.2% Portugal 8.3% Spain 17.8% Romania 34% Italy Investments by Partner Institution * 140 million euros current committed capital 18% Banca Transilvania 9% CIMAC 5% City of Rennes 4% 7% City of Orléans City of Santander 6% City of Venlo 3% 11% Dancer Mobility Illuminated Cities 0.7% Jewish Museum Berl sin Foundation 2% 2% 23% 0.4% Ore Valley Housing Association Universidad Politécnica de Madrid University Hospital S. Orsola- Malpighi University of Applied Sciences Munich 4% Vila do Conde 7% VIPA Investments by Sector * Investments by Financial Instrument * 22 % Renewable energy 10 % Clean Urban Transport 68 % Energy efficiency 17.8 % Financial institution 82.2 % Direct investment 30.2 % Equity 17.8 % Subordinated debt 51.9 % Senior debt * Based on commitments signed to projects, not including repayments or accrued interest. Matured investments not included. Any discrepancy is due to rounding. The financing facility with Wattosun and Smart Hospitals and Universities were closed during the beginning of 2021. Projects’ implementations had substantial delays in reaching the milestones. Hence, all financial commitment of a binding nature were released. The European Energy Efficiency Fund at a Glance 15

Activities report: the eeef’s investments Since its inception, the eeef has committed a total of EUR 175 m in 17 partner institutions, of which EUR 153 m have so far been disbursed. Germany (Berlin, Munich) € 1.6 m • € 1.0 m forfaiting loan to the Jewish Museum Berlin Foundation via the ESCO of Johnson Controls France (Orléans, Rennes, Paris, Lyon, Bordeaux, Rhône-Alpes) € 47.0 m • € 5.1 m shareholder loan and equity for the city of Orléans’ CHP plant • € 0.6 m forfaiting loan to the • € 6.9 m shareholder loan and equity University of Applied Sciences via the ESCO of Johnson Controls Italy (Northern Italy) € 46.2 m • € 31.8 m senior loan and VAT facility to Progetto ISOM for the upgrade of the University Hospital S. Orsola-Malpighi • € 16.0 m equity investment in the JV Illuminated Cities with Siram by Veolia for a portfolio of invest- ments (EE: smart public lighting) Spain (Madrid, Santander) € 11.7 m • € 2.5 m forfaiting loan to the Universidad Politécnica de Madrid via Enertika • € 9.2 m forfaiting loan to the city of Santander to upgrade existing street lighting for the city of Rennes’ CHP plant € 30.0 m senior debt to Bolloré (matured) € 5.0 m senior debt to the Société Publique Locale d’Efficacité Énergétique (SPL) in the Région Rhône-Alpes (matured) Romania (various locations incl. Cluj-Napoca, Bucharest, Magurele, Alba Iulia) € 25.0 m • Subordinated loan to Banca Transilvania for on-lending into energy efficiency and renewable energy projects United Kingdom (Cardenden, Scotland) € 2.2 m • € 2.2 m senior debt facility to the Ore Valley Housing Association via the SPV Cardenden Heat and Power 16 eeef Impact Report 2021 Portugal (Alentejo region, Vila do Conde) € 17.2 m • € 12.1 m forfaiting facility to CIMAC I-Quatro to upgrade existing street lighting • € 5.1 m forfaiting facility to Vila do Conde I-Quatro to upgrade existing street lighting Netherlands (Venlo) € 8.5 m • Senior debt facility to the city of Venlo for smart public lighting Lithuania (Klaipeda) € 14.0 m • € 4.0 m shareholder loan and equi- ty investment in the JV “Dancer Mobility” with Lithuanian electric bus manufacture “Dancer” • € 10 m equity investment in the Investment Platform with the Public Investment Development Agency VIPA

France City of Orléans The operating combined heat and power (CHP) plant has an installed capacity of 7.5 MW in electricity and 17 MW in thermal heat. The plant supplies heat to the city of Orléans and sells electricity via a power purchase agreement (PPA) to Électricité de France (EDF). Orléans Biomasse Énergie, the project’s special purpose vehicle (SPV), is majority owned by the eeef (purchase of 84.4 % of its shares). This project was the first equity investment by the Fund. The project enables a decentralised energy sup- ply for the city of Orléans using an existing dis- trict heating network. The plant, which is fired Key figures by wood biomass from a regional source, allows 15,000 households in the city to achieve annual savings of around EUR 200 each with the new energy source and increases the environmental sustainability. Sector: Renewable energy / biomass CHP Type of investment: Equity and shareholder loan Total project size (€m): eeef investment size (€m): 36.0 5.1 Maturity Observed t CO2e emission savings (p.a.): 19 years 18,386 Financial close: 12.03.2013 18 eeef Impact Report 2021

France City of Rennes Following a bid for tenders launched by the French Commission de Régulation de l’Énergie (CRE3) for the production of green energy using a biomass cogeneration plant, Rennes Biomasse Énergie SAS was authorised to build and operate a combined heat and power facility with an electrical output of 10.4 MW and a thermal output of 22 MW for the next 20 years. Rennes Biomass Énergie, the project SPV, is majority owned by the eeef (pur- chase of 85 % of its shares). This was the second equity investment signed by the eeef. Key figures The project enables a decentralised energy supply for the city of Rennes using an existing district network. The plant enables 21,000 households in the city both to save money with the new en- ergy source and to increase their environmental sustainability. The project generates sustainable heat aligned with offtake requirements and, due to the biomass fuel, achieves significant carbon savings compared to baseline. Type of investment: Equity and shareholder loan Total project size (€m): eeef investment size (¤m): 47.6 6.9 Maturity Observed t CO2e emission savings (p.a.): 20 years 13,365 Financial close: 12.12.2013 Sector: Renewable energy / biomass CHP

Germany Jewish Museum Berlin Foundation The Jewish Museum Berlin and the energy service company (ESCO) Johnson Controls entered into an energy performance contract (EPC) for the m useum buildings in 2012. The eeef’s initial investment totalled EUR 1.7 m. In 2015, the project scope was revised and consequently the eeef’s investment size was reduced to EUR 1.0 m. The project includes a number of energy efficien- cy measures, including the optimisation of the heating, ventilation and air conditioning and an efficient energy management system. The first en- ergy audit for the project was completed in 2017 and the annual primary energy savings for 2021 equated to 13,010 MWh. Sector: Energy efficiency / building retrofit Key figures Type of investment: Financial close: Forfaiting loan 20.03.2012 Total project size (¤m): eeef investment size (¤m): 1.4 0.9 Maturity Observed t CO2e emission savings (p.a.): 13 years 2,941 Germany University of Applied Sciences Munich Sector: Energy efficiency / building retrofit / CHP plant The University of Applied Sciences Munich and the energy service company (ESCO) Johnson Con- trols entered into an energy performance contract (EPC) for both of the buildings on the university’s campus in Munich-Pasing, with a total EPC vol- ume of EUR 1.1 m. The ESCO and the university agreed to energy efficiency measures composed of the optimisa- tion of the heating, lighting, metering, building management and pumping systems, as well as the installation of a 49.5 kW combined heat and power (CHP) plant. The project was implemented in 2013 and continues to achieve savings aligned with projections. In 2021, it achieved 2,235 MWh of primary energy savings compared to baseline, which is equivalent to 38 %. Key figures Type of investment: Financial close: Forfaiting loan 15.11.2012 Total project size (¤m): eeef investment size (¤m): 1.1 0.6 Maturity Observed t CO2e* emission savings (p.a.): 10 years 186 * The University of Applied Sciences purchases a renewable energy electricity blend, impacting the actual observed carbon savings. 20 eeef Impact Report 2021

Netherlands City of Venlo Project video City of Venlo here The city of Venlo and the eeef signed a long-term financing contract for EUR 8.5 m. The city’s existing public lighting is the biggest consumer of electricity on its electricity bill. The city therefore prioritised upgrading its street lighting in order to reduce its energy consumption and CO2e emissions as well as to save costs for the public budget. By the end of 2021, 1,674 lighting poles were replaced and 17.270 luminaires were replaced with LED technology. The project is further proof of the city’s commitment to achieving environmental sustainability. This street lighting project is linked to preparation works resulting from technical assistance. Venlo ben- efitted from funding from the European Commission Technical Assistance Facility (EC TAF). This enabled the city to tender and select the equipment man- ufacturer for the provision of the LED equipment. Sector: Energy efficiency / street lighting Key figures Type of investment: Senior debt Total project size (¤m): Financial close: 03.04.2014 eeef investment size (¤m): 8.6 8.5 Maturity 15 years Observed t CO2e emission savings (p.a.): 771 2021 Activities Report: Investments 21

Italy University Hospital S. Orsola-Malpighi Project video University Hospital S. Orsola-Malpighi here The project entity Progetto ISOM signed a con- cession agreement with the University Hospital S. Orsola-Malpighi, one of the biggest hospitals in Italy (1,758 beds). The eeef provided a project and VAT bond facility of EUR 31.8 m. The project comprises a number of initiatives, which improve the energy efficiency of the entire fluid production and distribution system and re- duce energy consumption. Such measures include the adoption of energy-efficient equipment such as centrifugal chillers and absorbers, the recon- struction of the heat distribution networks, the renovation of heat exchange substations and the inclusion of an underground tri-generation plant for the combined production of cooling, heat and power (CCHP), based on the energy consump- tion of the hospital facility, which is fuelled by methane gas. In 2021, carbon savings were 32 % compared to baseline, and primary energy savings were at 29 %. This upgrade of the entire energy system of the university hospital has been the biggest energy effi- ciency upgrade in Italy completed as part of a PPP. Key figures Type of investment: Financial close: Senior debt 08.05.2013 Total project size (¤m): eeef investment size (¤m): 41.0 31.8 Maturity Observed t CO2e emission savings (p.a.): 20 years 16,190 * Numbers based on contracted conversion factors. Sector: Energy efficiency / upgrade of entire energy system 22 eeef Annual Report 2021

Italy Illuminated Cities Città Illuminate S.r.l. (Illuminated Cities) is the holding company for the joint venture (JV) be- tween the eeef and Siram by Veolia, targeting a portfolio of street lighting projects in Italy, mainly benefitting small to medium-sized municipalities. The newly established joint venture will enable public entities to implement technically advanced solutions known as smart lampposts and ena- ble the integration of multiple services within the street lighting infrastructure. These projects will enhance public infrastructure whilst reduc- ing public energy consumption. This is thanks to measures including the instalment of LEDs, management systems, video, Wi-Fi and charg- ing stations for electric vehicles. The eeef is the main investor in the JV, while Siram acts as the industrial partner and full contractor for each project’s commissioning and operation. The JV realized its first investment in the munic- ipality of Rozzano, Milan Province, where 5,250 lighting points have been upgraded to LED tech- nology. The renewed infrastructure delivered not only more efficient and better lighting quality, but also integrated equipment to enable mul- Key figures tiple services, such as video surveillance, park management and pollution control. This project perfectly embodies the JV spirit, showing how also a small town of 42,500 inhabitants can be- come a smart city. In 2021, the JV acquired two new public energy redevelopment projects with the Municipalities of Nogara and Concordia Sagittaria, in the province of Verona and Venice. The investments aim at the adoption of high added-value technologies, ranging from the upgrading of obsolete electrical and thermal systems in public buildings, to the production of energy from renewable sources, the installation of LED street lighting and street furniture, remote control systems, remote man- agement and electric mobility services. Thanks to a total investment of approximately 6 million euros, in addition to all the improvements and benefits mentioned so far, the authorities will achieve savings in the energy consumption and energy bill, with a consequent dual reduction, of the environmental impact as well as of the energy expenses. Type of investment: Junior funds (equity and shareholder loan) Total project size (¤m): eeef investment size (¤m): 20.0 16.0 Maturity Estimated t CO2e emission savings (p.a.): 12 years 2,795 Financial close: 27.09.2018 Sector: Street lighting 2021 Activities Report: Investments 23

Portugal CIMAC In December 2018, the eeef signed the 12-year forfaiting facility of EUR 12.14 m with I-Quatro LDA (an ESCO company) to implement its first aggre- gated street lightning infrastructure transaction, with the mission to upgrade over 56,000 lumi- naires within 14 municipalities, including the UN- ESCO World Heritage site of Évora, represented by Comunidade Intermunicipal do Alentejo Cen- tral (CIMAC). On April 30, 2020, the officials of CIMAC inspect- ed the works and the implementation of meas- ures to improve energy efficiency in the Public lighting infrastructure of the 14 municipalities that constitute the Inter-municipal Community of the Alentejo Central region. CIMAC certified that the works are executed in harmony with the stipulated clauses and the approved execution project. With that, the installation phase officially concluded and the service phase of the energy efficiency meas- ures were approved to being on the same date. In addition, approximately 650 special luminaires have been identified by CIMAC that need to be assembled during the service phase. In 2021, The project realised 77 % in primary en- ergy (of 42,718 MWh) and carbon savings (of 4,753 t CO2e) annually compared to baseline con- sumption. Furthermore, it will result in EUR 7.1 m in economic savings for the municipalities over the 12-year concession. Key figures Type of investment: Forfaiting facility 27.12.2018 Financial close: Total project size (¤m): eeef investment size (¤m): 16.6 12.1 Maturity Estimated t CO2e emission savings (p.a.): 12 years 4,753 Sector: Street lighting 24 eeef Impact Report 2021

Sector: Street lighting Portugal Vila do Conde On December 30th 2020, eeef signed a forfaiting facility of EUR 5.1 million to finance renovation of the street lighting infrastructure in the municipal- ity of Vila do Conde in Portugal. The signing of this agreement illustrates successful replication of eeef’s forfaiting facility to other project in Por- tugal, the first one being CIMAC, an inter-munici- pal community constituted in the Central Alentejo region, comprising of 14 municipalities. This upgrade is expected to realize 66.4 % in primary energy and CO2 savings annually com- pared to baseline, representing 16,517 MWh and 2,799 tCO2e, respectively. In addition, the project will also generate ca. € 3.2 million of monetary benefits for the municipality over a 12-year peri- od of concession. Key figures Type of investment: Forfaiting facility 30.12.2020 Financial close: Total project size (¤m): eeef investment size (¤m): 7.7 5.1 Maturity Estimated t CO2e emission savings (p.a.): 12 years 2,799 2021 Activities Report: Investments 25

Sector: Clean urban transport Lithuania Dancer Mobility eeef invested together with UAB “Vejo Projektai”, a Lithuanian manufacturer of electric Dancer bus- es. The Fund and Dancer have established the company “Dancer Mobility” to provide all-inclu- sive operational lease services of electric buses manufactured in Lithuania to public authorities. Dancer Mobility will finance the purchase of e-bus- es and their operation, in the frame of all-inclusive operational leases provided by the company to public authorities and covering the bus usage, charging infrastructure, green energy supply and full maintenance. Key figures Type of investment: Equity and shareholder loan Total project size (¤m): eeef investment size (¤m): 5.0 4.0 Financial close: 23.02.2020 Maturity Estimated t CO2e emission savings (p.a.): up to 10 years 1,344 Sector: Energy efficiency / renewable energy Lithuania VIPA The Public Investment Development Agency (VIPA) of Lithuania, together with the eeef, agreed to set up Sustainable Resources Investment Development platform (IP), which focuses on the financing of sustainable investments contributing to the direct effects of climate change mitigation. The IP is targeting to finance “green” investments that generate, among others, energy savings, reduce CO2 emissions, and promote renewable energy use in Lithuania. With that objective, the IP intends to fully give out the funds mobilized as loans and, thus aggregate on its balance sheet, a portfolio of loans linked to climate change mitigation projects. Key figures Type of investment: Financial close: Equity 28.10.2021 Total project size (¤m): eeef investment size (¤m): 37 10 26 eeef Impact Report 2021 Maturity Estimated t CO2e emission savings (p.a.): up to 12 years 6.590

Romania Banca Transilvania The eeef provided Banca Transilvania (BT), one of the largest banks in Romania in terms of assets, a facility for a green on-lending programme to support energy efficiency and renewable energy investment, by the public sector in Romania. Via this investment, the eeef has gained a strong local partner with a history of financing several energy efficiency projects and which has a solid footprint in financing SMEs. This cooperation is helping to strengthen the Romanian banking sec- tor by providing financing to energy efficiency and small-scale renewable energy projects. BT is using eeef funding to give financial support to public and private building owners, homeowner / condo- minium associations, municipalities, public sector entities and private sector companies acting on behalf of the public sector. It is the first cooperation between the eeef and a financial institution as well as being the first invest- ment into Eastern Europe. The eeef is supporting Key figures Sector: Energy efficiency / renewable energy / clean urban transport BT in sourcing and evaluating underlying projects where needed, and the latter ensures that the fi- nanced projects comply with the eeef’s require- ments with respect to a CO2e emission / primary energy consumption reduction of at least 30 %. Furthermore, the eeef can jointly finance projects with BT if larger financing amounts are required. At the end of 2021, BT had financed and enabled 10 projects. The to-date cumulative savings of the projects are 373,692 MWh in primary energy. Type of investment: Subordinated debt 26.09.2013 Financial close: Total project size (¤m): eeef investment size (¤m): 25.0 25.0 Maturity Estimated t CO2e emission savings (p.a.): 10 years 5,692 47,8 million euros total volume financed through the facility 10 subprojects funded 3 technologies funded Portfolio facts 87,506 tons of cumulative CO2e savings 14 different project locations reached 373,692 megawatt hours of cumulative primary energy savings 2021 Activities Report: Investments 27

Spain Universidad Politécnica de Madrid The recent 2021 annual energy audit validated that carbon savings were above 30 % compared to baseline. Following directive 2012 / 27 / UE of the European Parliament, in June 2015, Universidad Politécnica de Madrid (UPM) invited energy service companies (ESCOs) to present their proposals to improve the heat and water supply systems across the campus and to reduce CO2e emissions by switching to a cleaner fuel source. In August 2015, the project was awarded to Enertika (Ingeniería y Servicios de Efi- ciencia Energética S. L.), an engineering company specialising in energy generation, energy efficien- cy and remote management services. The project replaced 63 gas oil boilers, consuming on average 946,479 litres of gas oil per year, with 66 natural gas boilers in all 32 campus buildings. Sector: Energy efficiency / building retrofit Key figures Type of investment: Financial close: Forfaiting loan 18.11.2015 Total project size (¤m): eeef investment size (¤m): 2.5 2.5 Maturity Observed t CO2e emission savings (p.a.): 9 years 1,042 Spain Municipality of Santander benefits for the municipality over the period of concession. The official acceptance of the renova- tion works was signed in December 2018. At the end of 2021, the project realized annual primary energy savings of 39,773 MWh. Sector: Street lighting The municipality of Santander benefitted from funding from the European Commission Technical Assistance Facility (EC TAF) managed by the eeef in order to conduct feasibility studies and, subse- quently, launch the ESCO tender for the renovation works. The tender was awarded to Elecnor S.A. The eeef provided a forfaiting facility to Elecnor S.A., where the latter received EUR 9.2 m to fi- nance the works. The facility will be fully repaid within the 15 years of concession period. The project is to upgrade 22,700 lighting points to LED luminaires. Each luminaire will also have wireless connectivity to the municipality’s digital communication network and control system. In addition, it will result in EUR 5.4 m in monetary Key figures Type of investment: Forfaiting facility 18.08.2017 Financial close: Total project size (¤m): eeef investment size (¤m): 9.2 9.2 Maturity Observed t CO2e emission savings (p.a.): 14 years 3,397 28 eeef Impact Report 2021

United Kingdom Ore Valley Housing Association Project video Ore Valley Housing Association here The OVHA was one of the first technical assis- tance (TA) beneficiaries under the eeef European Commission TA Facility. Since deploying TA funds, the eeef has worked closely with the OVHA by pro- viding guidance to support project development to realise investments. The eeef supported the OVHA in the development of a new project scope for a on-shore wind turbine and the replacement of over 170 outdated gas boilers in residential buildings owned by the housing association in the Fife council area in Scotland. Sector: Energy efficiency / renewable energy The eeef has closed its first community-based transaction in the UK in cooperation with Car- denden Heat and Power (CHAP), a subsidiary of the Ore Valley Housing Association (OVHA), which received funding from two external financing par- ties for their small-scale renewable energy and building retrofit project. The eeef co-financed the project alongside the Scottish Investment Bank, the investment arm of Scottish Enterprise, through their Renewable Energy Investment Fund. The project (total volume EUR 5.5 m) is a com- bination of a small-sized on-shore wind turbine and boiler replacements in social housing. The wind turbine is located at Cardenden close to the housing association’s main office sites in Fife and was provided by market leader Enercon. Opera- tions commenced during 2017 and the project se- cured a guaranteed feed-in tariff for 20 years from the Office of Gas and Electricity Markets (Ofgem); however, to increase project returns, the CHAP en- tered into a two-year power purchase agreement with EDF to secure a better tariff than the feed- in tariff for electricity sale to the national grid. Key figures Type of investment: Financial close: Senior debt 04.11.2016 Total project size (¤m): eeef investment size (¤m): 4.3 2.2 Maturity Observed t CO2e emission savings (p.a.): 16 years 403 2021 Activities Report: Investments 29

The eeef’s matured investments France Bolloré The French company Bolloré, a provider of car-shar- ing services for electric cars, signed a bond agree- ment worth EUR 30 m with the eeef in 2013. The investment financed electric cars and the infra- structure (i. e. charging stations, rental places, etc.) required for Bolloré’s European electric car rental concessions. The project, which provides cities with environ- mentally friendly electric cars, started in Paris and has subsequently been extended to Lyon and Bordeaux. The eeef’s bond has mainly been utilised in these regions. At the end of 2018, Bol- loré had 4,000 cars and 6,500 charging stations installed across the locations where the eeef’s funding was utilised. Key figures Type of investment: Financial close: Senior debt 23.12.2013 Total project size (¤m): eeef investment size (¤m): 30.0 30.0 Maturity Estimated t CO2e emission savings (p.a.): 5 years 8,658 Sector: Clean urban transport

France SPL – Région Rhône-Alpes Project video University Hospital SPL – Région Rhône-Alpes here The Société Publique Locale d’Efficacité Énergé- tique (SPL) benefitted from funding from the Euro- pean Commission Technical Assistance Facility (EC TAF) managed by the eeef for the initial preparation works and the finalisation of the project scope. Subsequently, the SPL signed a loan agreement of EUR 5.0 m to manage the short-term financing needs to refurbish public buildings during their construction phase and to pave the way for rais- ing further long-term financing. In 2018, The SPL repaid their debt facility as all 10 building retrofit projects were fully completed and commissioned, fulfilling the purpose of the project. On the one hand, the project continues to contribute to the eeef’s carbon balance aligning with carbon accounting standards until the end of economic maturity; on the other hand, accord- ing to the vice president of high schools in the Auvergne-Rhône-Alpes region, Béatrice Berthoux, the SPL project supports the essential movement to sustainable development of the region as well as helps raising the awareness of sustainabili- ty among the school pupils, which has longer- term effect. As shared by Éric Fournier, the vice president of the reginal council in the delegate for Envi- ronment, sustainable development, energy and regional nature parks, the eeef which support- ed SPL project, has set an effective example of public private partnership (PPP) in upgrading the public building energy efficiency and showcases eeef’s crucial role in the start-up phase in terms of construction financing and TAF. The region in- tends to progressively upgrade all their public school building in the coming years. SPL OSER – of which the region Auvergne – Rhône-Alpes is the majority shareholder, is a main regional ac- tor in its mission to upgrade the public building efficiency refurbishment projects and renewable energy installation in public buildings. The val- uable lessons from the success story of the SPL project will pave way for SPL and Rhône-Alpes region to achieve long-term objectives of energy savings and greenhouse gas reduction. Sector: Energy efficiency / building retrofit Key figures Type of investment: Financial close: Repayment: Senior debt 03.04.2014 12.02.2018 Total project size (¤m): eeef investment size (¤m): 25.0 5.0 Maturity Estimated t CO2e emission savings (p.a.): 5 years 992 2021 Activities Report: Investments 31

Project assessment and monitoring Eligible projects The eeef can invest in a range of energy efficiency, clean urban transport and smallscale renewable energy technologies, providing the carbon or primary energy savings investment criteria are met. Each project must achieve at least 30 % prima ry energy and / or carbon savings compared to baseline. The Fund may only invest when savings and other investment criteria are fulfilled. Project Assessment and Monitoring As the eeef can finance a variety of technologies, the initial technical assessment and ongoing moni toring of investments must strike the correct bal ance between accuracy and practicality of imple mentation. How the eeef evaluates technical eligibility is based on the project’s technology and loan size; for example, small standard (e. g. street lighting) project savings can be calculated using validat ed calculations from the Investment Manager’s carbon environment impact management (CEIM) tool, greenstem™ (greenstem). For projects with higher investment volumes and / or more complex technologies, detailed energy analyses are required in the form of thirdparty validated reports. As part of the Fund’s due diligence process and for the duration of the loan, the eeef evaluates and monitors the project’s savings performance in alignment with the International Performance Monitoring and Verification Protocol (IPMVP), which requires every project to establish a baseline ener gy consumption and then conduct a postproject implementation assessment. The Investment Manager’s CEIM team reviews the technical details of all eeef investments and works with project managers to enter relevant data points into greenstem. The Fund provides guidance to pro ject partners on how to conduct project analysis via thirdparty validated annual audit templates. This ensures the entire portfolio reports using a consistent methodology. greenstem™ All of the eeef portfolio reported impact indica tors are tracked in greenstem™, a proprietary webbased tool from the Investment Manager which automatically and consistently calculates anticipated and realised energy, primary energy and carbon savings. For small loans and stand ard technologies, greenstem™ completes calcu lations based on projectspecific data inputs and project location / technology conversion factors. The tool stores uptodate energy and emission conversion factors to ensure a consistent report ing approach across the portfolio. Factor sourc es include the Chartered Institution of Building Services Engineers for technology benchmark data and the Intergovernmental Panel on Cli mate Change for the conversion of energy da ta into greenhouse gas emissions. Electricity emission factors are sourced from the Interna tional Energy Agency and are updated annually in line with ISO 140642, the carbon account ing standard followed. All calculations and data sources used within the tool have been validated by a thirdparty engineering company. greenstem™ provides comprehensive, timely and accurate reporting charts and dashboards that have been configured specifically for eeef user groups. The tool is flexible and can be customised to include additional technologies in the portfolio. 34 eeef Impact Report 2021

Social and environmental management system (SEMS) The eeef aims to conduct its operations in line with the highest expectations regarding social and environmental responsibility. The eeef’s social and environmental management system (SEMS) defines the respective roles and responsibilities of the Fund and its partner institutions in promoting social and environmental sustainability. In general, these are in accordance with the Eu- ropean Investment Bank Statement on Environ- mental and Social Principles and Standards. For both types of investments – direct and ﬁnancial- institution investments – the eeef SEMS has spe- ciﬁc performance requirements and procedures which are applied. Compliance with these is assessed during the due diligence process and monitored later on through- out the lifetime of the project. The environmental and social (E&S) screening checks areas such as the following, as well as other E&S issues and reputational risk: 1. 2. General environmental and social issues: EU policy, legal context and compliance, environmental impact assessment process, E&S principles and standards Environment, biodiversity and climate change: Environmental / transboundary impacts, protected areas, critical habitants, biodiversity, forestry, cultural heritage, vulnerability to climate change, climate change mitigation 3. Social: Social assessment, involuntary resettlement, vulnerable groups, indigenous people, labour standards, etc. Carbon, Environment & Impact Management 35

Primary energy and greenhouse gas emissions savings 2021 The eeef’s projects aim to achieve at least 30 % primary energy savings on an annual basis (higher for the building sector) and a 30 % reduction of CO2 equiva- lents for transport and renewable energy projects. The quality of the methodology used to calculate the expected savings of projects is crucial. This allows the eeef to ensure its projects satisfy international standards regarding CO2e and primary- energy-saving reporting. Due to the wide variety of technologies included in the eeef’s portfolio, the Investment Manager has developed a standardised approach to calculating the project energy, primary energy and carbon savings for the eeef’s most common project technologies. Carbon emission savings and primary energy sav- ings were reported for the entire portfolio of 16 investments / signed commitments for a range of energy efficiency and renewable technologies in- cluding CHP biomass, small-scale wind and elec- tric vehicles. Once a project has been in opera- tion for a full year, the eeef receives annual audits stating its actual energy consumption. Year-on-year consumption variances are expected due to a number of factors, such as weather ad- vances in static data, and therefore project sav- ings can change annually. As shown below, these projects achieved total accumulated savings of 605,312 t CO2e and 847,549 MWh of primary en- ergy savings through the end of 2021. 36 eeef Impact Report 2021 17

Key technologies currently included in the portfolio: Building upgrades Street lighting Wind and Combined heat Electric solar and power cars Project Name Banca Transilvania* Bolloré CIMAC City of Orléans City of Rennes City of Venlo Dancer Mobility Illuminated Cities Jewish Museum Berlin Foundation Municipality of Santander Ore Valley Housing Association SPL Région Rhône-Alpes Universidad Politécnica de Madrid University Hospital S. Orsola Malpighi University of Applied Sciences Munich Vila do Conde VIPA Total (all projects) Total (EE & CUT only) Reporting as of Q4 2021 1 – 6 Cumulative Primary Energy Savings (MWh) Primary Energy Savings (%) Cumulative CO2e savings (t CO2e) Carbon Savings (%) 373.692 34.167 134.190 -289.247 -385.858 36.699 18.184 78.330 95.524 178,442 25.578 16.628 11.826 462.964 18.447 11.149 26.834 847,549 1,522,654 50 15 77 -28 -33 60 92 56 79 80 99 42 15 29 38 66 78 48 58 87.506 47.540 18.691 151.127 114.260 6.998 2.688 10.673 21.634 19,447 2.960 3.968 6.213 107.022 1.048 1.889 1.648 605,312 50 93 77 66 52 60 100 56 82 80 96 58 36 32 22 66 79 65 1 All project savings are calculated following international protocols, including the International Performance Measurement and Verification Protocol (IPMVP) for energy accounting and ISO 14064 for carbon accounting. All methodologies used by the eeef are validated by a global engineering company. Currently, all projects with concrete data are reporting in alignment with these guidelines, and all new projects are aligned with these frameworks. Project savings represent total project investment volumes. The eeef uses up-to-date and project-specific conversion factors from sources including the International Energy Agency and the Greenhouse Gas Protocol. For some projects within the portfolio, factors cannot be updated due to project specifics, so they continue to report on factors issued within the loan documentation. All cumulative numbers are based on investments loan maturity. EE means Energy Efficiency, CUT means clean urban Transport, RE means renew- able energy. The entire projects cover EE, CUT and RE projects. 2 The cumulative BT savings represent 10 subprojects. The portfolio’s percentage savings are calculated based on all subproject savings. Projects contribute to cumulative savings until the subloan has matured from the portfolio – i. e. at loan maturity. 3 For carbon, cumulative and percentage savings are based on the entire portfolio, percentage savings use the average. For primary energy, cu- mulative and percentages saving are presented for projects from the portfolio which provide primary energy savings, ie. energy efficiency and clean urban transport projects. For the sake of completeness, the cumulative and percentage primary energy savings are also provided for all projects. Matured investments are included within the total. 4 Cumulative data include calculations from financial close to loan maturity, based on estimations for projects under construction and with less than one year of operations and actual data for projects which have been in operation for over one year. Savings are for total project invest- ment volume (ie. eeef and non-eeef investments). 5 Dancer Mobility is based on signed commitments. Illuminated Cities are partly based on signed commitments as the construction for one sub-project has already completed. The savings for these three projects are based on estimates. 6 SPL matured in Q1 2018. Bolloré matured in Q1 2019. Catfoss did not reached required agreements / conditions in accordance with the financ- ingfacility to proceed with its implementation. The funds were transferred back to eeef’s account in Q4 2021. Wattosun has been terminated as it was not progressing as agreed. In light of the pandemic and the substantial delays caused to the project implementation, JV SmartH&U amended the existing agreement and released financial commitments in a binding nature. Carbon, Environment & Impact Management 37 17investments / signed commitments achieved CO2e and primary energy savings

Taxonomy alignment eeef qualifies, within the SFDR Product Category, as a Dark Green Fund. The In- vestments are environmentally sustainable and take into account the EU criteria for environmentally sustainable economic activities pursuant to Article 3 of the EU Taxonomy Regulation. eeef carries out energy saving, renewable ener- gy and energy efficiency project activities which: contribute substantially to the Environmental Ob- jective of climate change mitigation: the Fund contributes with a layered risk / return structure to enhance energy efficiency and foster renewa- ble energy in the form of a targeted private pub- lic partnership, primarily through the provision of dedicated financing via direct finance and part- nering with FIs. Commission Delegated Regulation (EU) 2021 / 2139 of 4 June 2021 supplemented Regulation (EU) 2020 / 852 of the European Parliament and of the Council by establishing the technical screening cri- teria for determining the conditions under which an economic activity qualifies as contributing sub- stantially to climate change mitigation. The EU Taxonomy is a classification system laid down in Regulation (EU) 2020 / 852, establishing a list of environmentally sustainable economic activities. The way to establish the EU Taxonomy categori- zation is described in the EU Taxonomy Compass tool https://ec.europa.eu / sustainable-finance-tax- onomy / tool / index_en.htm and according to this we have reviewed the investments eeef has made and are in its portfolio. 38 eeef Annual Report 2020 38 eeef Impact Report 2021

Project Name Banca Transilvania CIMAC City of Orléans City of Rennes City of Venlo Dancer Mobility Illuminated Cities Jewish Museum Berlin Foundation Municipality of Santander Ore Valley Housing Association Universidad Politécnica de Madrid University Hospital S.Orsola Malpighi University of Applied Sciences Munich Vila do Conde VIPA Alignment with the EU Taxonomy categorization according to Annex I ‘technical screening criteria for determining the conditions under which an economic activity qualifies as contributing substantially to climate change mitigation and for determining whether that econom- ic activity causes no significant harm to any of the other environ- mental objective’* 4.1: Electricity generation using solar photovoltaic technologies. The economic activities could be associated with NACE codes** D35 and F42. 6.3: Urban and suburban transport, road passenger transport. The economic activity could be associated with the NACE code H49. 7.2: Renovation of existing buildings. The economic activity could be associated with the NACE code F42 and F43. 7.4: Installation, maintenance and repair of charging stations for electric vehicles. The economic activity could be associated with the NACE codes F42, F43, M71, C25, C27, C28. 7.3: Installation, maintenance and repair of energy efficiency equipment. The economic activity could be associated with the NACE code F43. 4.2: Cogeneration of heat / cool and power from bioenergy. The economic activity could be associated with the NACE code D35. 4.2: Cogeneration of heat / cool and power from bioenergy. The economic activity could be associated with the NACE code D35. 7.3: Installation, maintenance and repair of energy efficiency equipment. The economic activity associated with the NACE code F43. 6.15: Infrastructure enabling low carbon road transport and public transport. The economic activity could be associated with the NACE codes F42 and F71. 6.3: Urban and suburban transport, road passenger transport. The economic activity could be associated with the NACE code H49. 7.3: Installation, maintenance and repair of energy efficiency equipment. The economic activity could be associated with the NACE code F43. 7.3: Installation, maintenance and repair of energy efficiency equipment. The economic activities in this category could be associated with several NACE codes, in particular F42, F43. 7.3: Installation, maintenance and repair of energy efficiency equipment. The economic activity could be associated with the NACE code F43. 4.3: Electricity generation from wind power The economic activity could be associated with the NACE codes F35 and F42. 7.3: Installation, maintenance and repair of energy efficiency equipment. The economic activities in this category could be associated with several NACE codes, in particular F42, F43. 7.3: Installation, maintenance and repair of energy efficiency equipment. The economic activities in this category could be associated with several NACE codes, in particular F42, F43, C27, C28, C33. 7.3: Installation, maintenance and repair of energy efficiency equipment. The economic activities in this category could be associated with several NACE codes, in particular F42, F43. 7.3: Installation, maintenance and repair of energy efficiency equipment. The economic activity associated with the NACE code F43. Not relevant yet. * This information has been prepared by the Investment Manager based on technical advisors' reports of each investment and has not yet been validated by any third party. ** Established by Regulation (EC) No 1893 / 2006. Carbon, Environment & Impact Management 39

BlueMark verification In 2020, eeef has engaged in the annual public disclosure of its alignment with Operating Princi- ples for Impact Management (Impact Principles). Impact Principles support the development of the impact investing industry by establishing a common discipline around the management of impact investments and promote transparency and credibility by requiring annual disclosures of impact management processes with independent verification. In 2021, eeef’s impact management system is independently verified by BlueMark, a leading provider of impact verification services in the impact investing market. BlueMark was incubated and launched in January 2020 by Tide- line, a leading women-owned impact investing consultancy, with a mission to strengthen trust in impact investing and to help bring more account- ability to the impact investment process. Going forward, the Fund is committed to bring its impact management process to close to the best prac- tice and most recognisable industry standards. With the independent assessment from BlueMark, eeef is eager to improve its impact management in the coming year. The chart below summarizes findings using four rating: advanced, high, mod- erate and low. OPERATING PRINCIPLES FOR IMPACT MANAGEMENT Strategic Intent investment strategy 1. Define strategic impact objective(s), consistent with the 2. Manage strategic impact on a portfolio basis 3. Establish the Manager's contribution to the achievement of impact Origination & Structuring 4. Assess the expected impact of each investment, based on a systematic approach 5. Assess, address, monitor, and manage potential negative impacts of each investment ALIGNMENT* HIGH HIGH MODERATE HIGH ADVANCED Portfolio Management 6. Monitor the progress of each investment in achieving impact against expectations and respond appropriately HIGH Impact at Exit 7. Conduct exits considering the effect on sustained impact LOW 8. Review, document, and improve decisions and processes based on the achievement of impact and lessons learned MODERATE * Advanced – Limited need for enhancement at present High – A few opportunities for enhancement Moderate – Several opportunities for enhancement Low – Substantial enhancement required 40 eeef Annual Report 2020 40 eeef Impact Report 2021

eeef contribution to Sustainable Development Goals The European Energy Efficiency Fund work actively to contribute to the interna- tionally recognized United Nations (UN) goals for sustainable development, the so-called Sustainable Development Goals (SDGs). The fund registered its partner- ship for UN SDGs and mapped its impact against the following SDGs 7, 11, 13 in the beginning of 2020. The sustainable progress of each goal is now measured with eeef deﬁned indicators which are closely aligned to SDGs framework. Amount of eeef renewable energy & energy efﬁciency projects1 contributing to doubling the global rate of improvement in energy efﬁciency 12 projects in Energy Efficiency 2 projects in Renewable Energy 1 projects in Clean Urban Transporty Annual number of people reached2 through all eeef investments: ~6.7 million people through eeef investments ~1.6 million people through TA projects 304 EUR / person Investment intensity3 Number of countries and public authorities, in which eeef is engaged via its projects since inception (all eligible due to public link) 9 Countries4 44 public authorities 1 Only active projects. OVHA, Banca Transilvania and VIPA are included under EE with a portfolio-mix of EE and RE investments 2 Number of population reached is calculated based on the estimation considered for each individual project. For eeef investment projects, estimation of people reached is based on the percentage amount of the population of the city or region achieved through eeef investments (e.g. calculation number of staff, students, professors, patients, etc.) For the TA projects, beneficiary population is calculated based on the city population where the TA projects takes place. 3 Investment intensity measures total investment realized via eeef investments divided over the number of total population reached. 4 8 Member States and the UK Carbon, Environment & Impact Management 41

Population reached through eeef investment activities eeef investment projects City / region Annual popula- tion reached Notes on population reached ACTIVE Jewish Museum Berlin Berlin 700,000 Average number of visitors per year who visit the Jewish Museum Berlin since its opening in 2001. University of Applied Sciences Munich Munich 19,592 The total number of students, academic and non-academic staff as of 2019. Part of population benefiting from either heat or power of the CHP project in the City of Orleans. The total number of academic staff (professors, lectures), students, patients and non-academic staff. City of Orléans Orleans 57,120 University Hospital S. Orsola-Malpighi Banca Transilvania (BT) Bologna 20,000 Multiple cities in Romania 4,857,343 The population in the city or region which has benefitted from the sub-loan funding of BT. City of Rennes Rennes 85,680 City of Venlo Venlo 100,536 Universidad Politécnica de Madrid Madrid 46,000 Ore Valley Housing Association Cardenden 6,533 City of Santander Santander 572,044 Illuminated Cities Rozzano 42,557 CIMAC Portugal CIMAC Region 167,000 Dancer Mobility Klaipeda 0 Vila do Conde Vila do Conde 79,533 VIPA MATURED Multiple regions in Lithuania 1,033 Bolloré France Paris Région Rhône-Alpes Total Région Rhône-Alpes n.a. 3,579 6,751,550 * Source: Oficialiosios statistikos portalas Part of population benefiting from either heat or power of the CHP project in the City of Rennes. The total population of city of Venlo (census 2015) is considered as reached population. The total number of students, academic and non-academic staff working at campus of UPM. The total number of residents and tenants who live in the project area (based on the reported figures from OVHA). The total population of city of Santander includ- ing average number of tourists visiting the city of Santander each year. The total population living in the municipality included in pipeline at closing date. The total population living in 14 municipalities (census 2011) that are located in the Alentejo Central Region in Portugal where upgrade of luminaries would be perform. People reached will be estimated based on num- ber of population using public transport. The pro- ject seek to replace 10 diesel buses in Klaipeda. There are no busses used from the project yet. The total population of Vila do Conde as of cen- sus 2011. The first project approved by the Investment Platform has reached 474 number of households. To reach the number of beneficiary people. this number has been multiplied by the average household size of 2.18 persons.* Bolloré terminated car sharing project in France in 2020. The population reached is thus unavailable. Total estimated number of teachers, personnel of refurbished public buildings including 12 schools. 42 eeef Annual Report 2020 42 eeef Impact Report 2021

Population reached through eeef Technical Assistance (TA) Facility activities eeef TA projects City / region Annual popula- tion reached Notes on population reached ACTIVE City of Gijón Province of Ferrara Gijón Ferrara Ducal Palace of Modena Modena 271,780 345,691 186,741 Kaunas District Municipal Administration Autonomous Province of Bolzano Ukmergė District Municipality Admistration Administration of Silute District Municipality Klaipėda University Hospital Total Kaunas 96,441 Bolzano 533,373 Ukmergė 33,471 Silute 14,968 Klaipeda 162,690 1,645,155 Population reached through eeef Technical Assistance (TA) projects is calculated based on the population of a city / region where the TA projects take place. The population reached, for both eeef investment activities and eeef Technical Assistance Facility projects, is annualised number and is estimated with a prudent approach. For eeef investment projects, estimation of people reached is based on amount of the population of the city and / or the region achieved through eeef project activities (e.g., calculation number of staff, students, professors, patients, etc.) Number of reached population through eeef investment activities is calculated based on the estimation considered for each individual project as reported in the investment committee proposal. For the TA projects, beneficiary population is calculated based on the city population where the TA projects takes place. Carbon, Environment & Impact Management 43

The eeef’s technical assistance facility ► EUR 389,500 approved to Ferrara Province ► EUR 400,000 approved to the City of Gijón ► EUR 340,000 approved to the Italian Ministry of Defense ► EUR 180,000 approved to Kaunas District Municipality ► EUR 400,000 approved to the Autonomous Province of Bolzano ► EUR 160,000 approved to Ukmerg District Municipality ► EUR 195,000 approved to Šilutė District Municipality ► EUR 195,000 approved to the Klaip da University Hospital Following the European Commission TA Facility managed by the eeef, the Fund set up the eeef TAF to support ambitious public beneficiaries in developing bankable sustainable energy investment programmes. These projects shall relate to the energy efficiency sector, renewable energy and / or public urban transport. The eeef TAF aims to bridge the gap between sustainable energy plans and real investments by supporting all activities necessary to prepare investments into sustainable ener- gy projects. Eligible applicants are regions, city councils, universities, public hospitals, public-owned water companies and other public entities located in the member states of the European Union. On average, the development of an energy efficiency project in the public sector requires around 4.5 years from the con- ceptual phase to implementation. The eeef TAF efficiently reduces this time frame to 1.5–2 years by directly allocating consultancy services to the TA beneficiaries (tender of these consultancy services completed by the eeef). This means that the eeef selects appropriate experts with the required know- how and expertise via a tender process (completed entirely by the eeef) and assigns them to the relevant investment programmes. The TA beneficiaries can use the consultant ser- vices to, for example, carry out feasibility studies, energy au- dits and evaluate the economic and financial viability of their investments. Legal support for the investment programmes to draft the PPP tender documents is also included in the TA, while costs can be covered by the eeef. From the TA Facility inception to date, the eeef has contribut- ed a total of EUR 1.9 m (including the reimbursement for the Ferrara TA project of EUR 408,975), which were supplement- ed by the European Investment Bank (“EIB”) – European Lo- cal Energy Assistance (“ELENA”) TA Facility under the Horizon 2020 Programme of the European Union by EUR 1.3 m (up to Q4 / 2021). The remaining amount of EUR 470,895 is expect- ed to be disbursed by Q1 / 2022, which will add up the total funding of EUR 1.8 m from the ELENA contributions. The eeef’s Facility available for projects has a total reached over EUR 3.3 m by Q4 / 2021, from which EUR 2.3 m are already commit- ted to eight signed projects, and ca. EUR 600 to other fees and eeef cost (e.g, external experts, TA management fees, etc) leading to ca. of EUR 400 funds available for new projects. The first call for proposals of the eeef TAF was successfully closed on 1 March 2017. It attracted interest among various public authorities within the EU. Afterward, the eeef received further applications from public authorities in Lithuania. By the end of 2019, eeef published an open call for proposals to allocate consultant services required for the projects, sub- ject to the availability of funds. The new call for proposals was closed on 04 December 2019. From the call for proposals, the eeef selected a pool of con- sultants who will work closely with the public authorities during the preparatory phases, from feasibility studies to energy audits to assistance in the public tender processes. So far, eight public beneficiaries have been selected across Spain, Italy and Lithuania to participate in the TA programme. Likewise, five projects (Ferrara Province, Modena, Kaunas, Gijón and Ukmerg ) have already published the tender by Q4 / 2021. Application by public authority • Submission of standard application • Selection if eligibility criteria are met Scoping of the TA project TA implemen tation Monitoring and reporting Public procurement Financing • Allocation of eeef consultant • Scoping of work jointly by TA beneficiary and consultant • Advisory servic- es according to agreed implemen- tation timeline • Monthly time • Upon positive • Entering into sheets to monitor TA progress • Further reporting outcome, procure- ment of investment programme • Selection of ESCO ( s) financing phase with eeef • Signing of financing- contract 46 eeef Impact Report 2021 Maximum two years

Eligibility criteria and application procedure A request for technical assistance has to meet the follow- ing eligibility criteria: • Beneficiary has to be a public authority (municipal, lo- cal, regional or national) or a public-owned company • Primary energy savings of at least 30 % on an annu- al basis (30 % reduction of CO2 equivalents for certain other technologies, i. e. renewable energy) • Minimum leverage factor of 20 (final investment volume of the project divided by TA support amount) • Financing of the project to be provided by the eeef (EUR 5 – EUR 25 m) The first call for proposals for TA beneficiaries planning sustainable investment programmes was initiated by the end of 2016 and successfully closed in Q1 / 2017. The new- ly launched facility attracted interest among various public authorities seeking support to develop their sustainable project plans. The remaining funding is available on a first come, first served basis by applying directly to the Fund. During 2019, the eeef TAF has received applications of several TA beneficiaries from Lithuania. Therefore, the eeef published a new open call for proposals in November 2019 to search for consultants to assess potential projects in the country. The call for proposals was closed on 04 December 2019. Up to now, eight public beneficiaries have been selected under this facility. The eeef is currently reviewing new TA applications, e.g., from Latvia and Spain (País Vasco). eeef expects to achieve contractual closing with both public au- thorities by Q1 / 2022. Additionally, eeef is in preliminary dis- cussions with further public authorities in Italy and Lithuania. New applications can be submitted to: technical_assistance@eeef.eu Further details: https://www.eeef.lu / eeef-ta-facility.html 1. eeef selects consultants 2. eeef matches consultant with TA beneficiary TA beneficiary (public entity) TA work performance on eeef mandate eeef TA TA agreement eeef consultant Consultancy agreement eeef 3. Joint definition of project scope 5. 4. Progress monitored monthly by eeef Bankability built along the development process. eeef providing project funding is a condition to receive TA support Technical Assistance Facility 47

Street lighting Gijón is the first city to join the eeef to collaborate on the new eeef Technical Assistance Facility Ayuntamiento de Gijón was the first public authority to participate in the new eeef Technical Assistance Facility. With the full commitment of its mayoress, the City of Gijón embarked on an ambitious journey to fi- nalise the comprehensive and intelligent manage- ment of electricity and thermal supply of street lighting, municipal buildings and facilities, iden- tifying a set of energy efficiency and / or renewa- ble energy related interventions as well as pub- lishing the tendering documentation to launch a EUR 23 m investment programme in renovation works and selecting an ESCO company to realise the measures within a two-year time frame. The eeef has been accompanying the city during the whole process by collaborating with the manage- ment team proposed by the city. By mid-2019, the TA works have been complet- ed. In May 2019, Spain went through local elec- tions and a new authority was appointed in the City of Gijón. Due to political changes, the project was delayed over one year in its implementation. Recent developments In August 2020, eeef extended the TA contract with the TA beneficiary with an updated milestone plan in place. On 20 December 2020, the ten- der was published on the City of Gijón website and the Spanish State Contracting Platform. Six proposals were received and in August 2021, a provisional awarded ESCO was selected. Before awarding the contract, a mandatory term is es- tablished by law for exercising legal remedies. The City of Gijón awarded the service to a win- ner ESCO and signed the respective contract in Q4 / 2021. Project Partner The City of Gijón is the largest munici- pality within the community of Asturias, Spain, with a population of 270,000 cit- izens. For over three years, the city has been developing its European agenda and positioning itself as “Gijón en Eu- ropa” with a number of projects and initiatives at the European level. 48 eeef Impact Report 2021

The Province of Ferrara is the second public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility Street lighting The Province of Ferrara is located in the Emilia-Romagna region in Italy. It has a total of 354,000 inhabitants living throughout its 24 municipalities. 22 of its municipalities have adopted sustain- able energy action plans (SEAPs) and are in need of support to boost the implementation of their projects. Building upgrades Joining forces with SIPRO (Agenzia Provinciale per lo Sviluppo) – a development agency – the circa EUR 31 m investment programme of the Province of Ferrara is aimed at addressing the implemen- tation of energy efficiency measures in several municipalities to reduce energy consumption and heat loss going forward. Municipalities directly in- volved in this TA project are Ferrara, Cento, Meso- la and Voghiera. These municipalities are leading the way and encouraging further public authori- ties to pursue their sustainable investment paths. The investment programme includes deep ener- gy retrofitting measures (in 12 buildings such as schools, offices, town halls and sports facilities) in the municipalities of Mesola, Ferrara and Cento and the replacement of over 27,616 public light- ing points with LED technology in the cities of Ferrara and Voghiera. The tender for the LED replacement in Ferrara was launched in March 2018. The contract was award- ed to an ESCO in July 2019. The Municipality of Voguiera did not launch any tender, as it needed to involve a contracting authority and cover rel- evant costs for the tender process necessary for refurbishing the lighting systems. The tenders for the public buildings projects in Mesola and Ferrara were published in April and December 2018, respectively. In Mesola, the ser- vice was awarded to an ESCO, while Ferrara did not receive any offer in the first call. The Munic- ipality of Cento decided not to publish a tender since the political framework changed and the new government has other priorities. Recent developments By the end of 2020, the Province of Ferrara TA works have been completed and the TA Pro- gramme has reached Closing. Project Partner SIPRO is a development agency with a 40-year track record deeply rooted in the Province of Ferrara and experienced in the promotion of local development, in particular with a focus on: I) sustainable development, II) external investment attraction and III) identification of incentives and financing instruments. SIPRO, as the TA beneficiary, has managed the whole development phase of the involved municipalities and collaborated with the consultant team to perform the TA works.

Building upgrades The Italian Ministry of Defence is the third public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility The Ducal Palace in Modena (Italy) is owned by the Italian government and is currently used by the Italian Ministry of Defence (MoD). The Ducal Palace houses the headquarters of the Military Acade- my, where military students are trained. Additionally, part of the Eastern Tower of the palace houses the University of Modena and Reggio Emilia’s (UNIMORE) geophysical / meteorological observatory, and the first floor is used as a museum where guided tours are offered by the Municipality of Modena. 50 eeef Impact Report 2021

The MoD is the beneficiary of the eeef. The technical assistance facility (TAF) set up a task force to elaborate on energy efficiency and renew- able energy measures for retrofitting the palace under an EPC model. The total project volume is circa EUR 9 m, which includes EUR 5.2 m to upgrade thermal systems and EUR 3.8 m to renovate the building’s enve- lope. Planned measures include the following: • Upgrade of the thermal system: Installation of new pipes for the network dis- tribution plus improvements to existing ones, installation of advanced climate control sys- tems, replacement of old radiators, installa- tion of high efficiency boilers, retrofitting of the entire hot water system by disconnecting it from the central plant through new heat pumps. • Building envelope: Reducing thermal losses from the building envelope by installing thermal insulation in internal opaque walls with innovative materi- als and reducing the amount of air infiltration by improving window fittings. The project site is in the city of Modena in the Italian region of Emilia-Romagna. The Ducal Pal- ace of Modena is one of the most important his- torical buildings in Italy. The palace was the resi- dence of the Este dukes of Modena for more than two centuries. The eeef TAF provided consultancy services to complete fully fledged feasibility studies within the palace to clearly identify the current infrastructure and propose appropriate improvement measures within a building of such historical value. All of the recommendations have been in compliance with the architectural constraints required by law to protect the historical heritage of the palace. The proposed measures will help to maintain one of the most historical buildings in Italy accord- ing to the latest energy standards and promote energy efficiency. Recent developments With the TA works already completed and tender documents finalised, the tender was published in May 2020. The deadline for the submission of offers was extended until September 2020 due to numerous requests for extension (business op- erators sought to be more prepared to face the pandemic risks). Four bidders participated in the call for proposals and were eligible. The awarded ESCO was announced in October 2021. Technical Assistance Facility 51

Street lighting The Kaunas District Municipality Administration is the fourth public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility The Kaunas District Municipality Administration, Lithuania, is planning the implementation of an ambitious investment programme to enhance the energy efficiency of the public street light- ning infrastructure in several elderships. There is a total of 25 elderships directly involved in this project, including Akademija, Alšėėnai, Babtai, Batniava, ČČekiškėė, Domeikava, Ežerėėlis, Garliava, Garlia parish, Kaččerginėė, Karmėėlava, Kulautuva, Lapėės, Linksmakalnis, Neveronys, Raudondvaris, Ringaudai, Rokai, Samylai, Taurakiemis, Užliedžiai, Vandžiogala, Vilkija, Vilkija parish and Zapyškis. This project supports the Kaunas District Munici- pality Administration through their eldership struc- ture to initiate a multitude of smaller projects, which all fall under the same financing umbrella and benefit from reduced investment cost. The project site is located in the Kaunas Dis- trict Municipality, one of Lithuania’s biggest and most densely inhabited municipalities with near- ly 100,000 people. One of the 60 district munici- palities in the country, it seeks to become an at- tractive centre for business, citizens, tourists and infrastructure. The Kaunas District Municipality has identified that renovating the current public lighting infrastructure would support the transi- tion towards a more desirable community whilst improving public energy consumption. The envisaged total project volume is EUR 4.2 m. The final project design is one deliverable by the eeef TAF. Recent developments TA works have been finalised. Initially, the ten- der was published in August 2020, however, the tender was relaunched on 5 October 2020 due to the municipality’s interest in including some specifications regarding the bidder requirements. The new tender was published on the Lithuanian Central Procurement website. A winner ESCO was selected in October 2021. A legal period to pres- ent claims and requests regarding qualifications applies. Clarifications were presented and inquir- ies were absolved. The definitive winner ESCO is expected to be announced by Q1 / 2022. 52 eeef Impact Report 2021

The Autonomous Province of Bolzano is the fifth public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility Building upgrades The Autonomous Province of Bolzano (PBA) in Italy is planning the implementation of an ambiti- ous investment programme for the renovation of up to 263 public buildings. The initial technical assistance activities will identify a representative sample of buildings from 27, which have been pre-selected. The Province has a population of nearly 530,000 inhabitants with a surface of almost 7,400 km. The project site is located in the north of Italy, particularly in the cities of Bolzano, Brunico, Bres- sanone and Merano (buildings location), which are four of the main towns in the Province. The project volume for the pilot programme is EUR 38.5 m. The aim is to develop a large pi- lot project to verify the overall feasibility of the retrofit model, to expand it to all 263 eligible buildings whilst minimising costs and risks for investors. The buildings owned by the Province are expected to consume less energy. Planned measures are the following: • Public buildings upgrades including room and façade insulation, installation of new windows and condensing boilers. • Installation of photovoltaic systems and efficient lighting. Recent Developments TA works have been finalised. In March 2020, the market consultation process ended. Two proce- dures were analysed for the publication of the tender: (I) Open public initiative procedure: the TA ben- eficiary provides the preliminary planning and related documents to select a private partner. (II) Private proposal of the PPP procedure: each private partner, based on the Province’s guide- lines, participates in a first tender process and proposes a preliminary plan. A Project Promoter will be selected. Then an open tender will be in- itiated, based on the Promoter proposal. The PBA has chosen the private proposal of the PPP procedure. The notice for tender to select the Project Promoter was published in August 2020 and four proposals were received. A Promoter was identified by September 2021 and is under evaluation by the PBA before declaring the fea- sibility of its proposal. A definitive Promoter is expected to be announced by Q1 / 2022. The final tender is expected to be published by Q2 / 2022.

Building upgrades The Ukmerg District Municipality Administration is the sixth public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility The Ukmerg District Municipality Administration is the second public authority from Lithuania that will benefit from the eeef’s Technical Assistance programme. The capital of the municipa- lity is Ukmerg , which is considered the largest settlement in the municipality. It is situated in Vilnius County and has 34,000 inhabitants. Currently, there are 12 elderships in the district: Deltuva, Lyduokiai, Pabaiski, Pivonia, Siesikai, Sesuoliai, Taujenai, Ukmergé, Vepriu, Vidiskes, Zelva, Zemaitkiemis, 10 towns, 508 villages, 104 communes The project site is in Vilnius County, Lithuania. In September 2019, the eeef signed a TA Agree- ment with Ukmerg District Municipality Adminis- tration, to help them preparing and implement- ing an ambitious investment program for the renovation of five municipal public buildings: Ukmerg Dukstynos Primary School, Ukmerg Dis- trict Taujenai Gymnasium, Ukmerg District Vid- iskes Basic School, Ukmerg children’s nursery “Eglute” and the Ukmerg Uzupis Primary School. This project aims to improve the buildings energy efficiency and ensure that they meet the nation- al energy performance requirements to facilitate a positive contribution to the national strategic objectives in energy efficiency. A preliminary assessment identified an estimated investment volume of EUR 3.9 m. The TA servic- es, provided by experienced local consultants, will support the efforts of the Administration’s employees to prepare the investment project. Supported services include the preparation of energy audits, evaluating the economic viability of each investment, and structuring the tender documents to align with the PPP / ESCO model. Recent developments TA works were completed. The tender documents were published in October 2021. Three bidders presented offers. The awarded ESCO is expected to be announced by Q2 / 2022. 54 eeef Impact Report 2021

The Administration of Šilutė District Municipality is the seventh public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility Building upgrades The Šilutė District Municipality is the third public authority from Lithuania that will benefit from the eeef’s Technical Assistance programme. It is situated in the southern part of Klaip da County, one of the most developing regions of the country. This is mainly determined by the Klaip da port, which is the only northernmost ice-free port in the Eastern part of the Baltic Sea. It has 37,641 inhabitants and an area of 1706 km2. It is divided into 11 elderships (Gardamo, Juknaiciu, Katyciu, Kintu, Rusnes, Saugu, Šilutės, Sveksnos, Usenu, Vainuto, Zemaiciu Naumiescio), seven towns and 311 villages. On 10 July 2020, the eeef and the Šilutė District Mu- nicipality signed a TA agreement to prepare an am- bitious investment program that will improve the energy efficiency of municipal public buildings and ensure that they meet the national strategic objec- tives and energy efficiency requirements. The pro- ject aims to modernise 11 public buildings, which are the following: (I) Rusnes Culture House, (II) Šilutė nursery “Azuoliukas”, (III) Šilutė Pamario Primary School, (IV) Šilutė nursery “Gintarelis”, (V) Kintai Primary School, (VI) Saugai Jurgis Miksas Primary School, (VII) Šilutė District Municipality Sveksnos nursery, (VIII) Usenai Primary School, (XI) Šilutė District Municipality building, (X) Šilutė Hospital and (XI) Vilkyciai School. The project volume for the programme is circa EUR 8.8 m. It is expected to be distributed over a three year period (2022 – 2024). The TA Consultants appointed by eeef will pro- vide energy audits and technical consultations, evaluation of the economic viability of each in- vestment, including financial analysis, and struc- turing the tender documents to align with the PPP / ESCO model. Legal advisory services con- cerning these tasks will be provided. Recent Developments Audits and studies have been completed. Initial- ly, the investment study (IP) was finalised and reviewed by the respective authorities in Febru- ary 2021. However, after deep consideration, the municipality decided to include additional meas- ures. The newly updated IP was approved by the municipality in April 2021 and by the CPMA in June 2021. The tender documents were com- pleted in December 2021 and are expected to be published by Q1 / 2022. Technical Assistance Facility 55

Building upgrades The Klaipėda University Hospital is the eighth public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility The Klaipėda University Hospital (KUH) is located in the Klaipėda City Municipality, near the Baltic Sea and the Curonian Lagoon, one of the country’s most developing municipalities due to the Klaipėda seaport. The KUH is one of the largest and most important medical institutions in Lithuania, with circa 1,000 beds, 1,775 employees and an area of approximately 60,000 sq. m. The Hospital is engaged in academic activities allowing medicine students to perform their practice and activities of scientific research. The Klaipėda University Hospital (KUH) is an in- dependent legal entity – public institution, found- ed and incorporated by the Council of Klaipėda City Municipality. It is well known for its high- est quality services, modern medical equipment and highly qualified staff. Also, it provides mul- ti-profile medical services to the inhabitants of Klaipėda and Lithuania. On 22 October 2020, the eeef and the Klaipėda University Hospital signed a TA agreement. The project volume for the programme is EUR 7.2 m. The aim is to develop an ambitious in- vestment program that will enhance energy ef- ficiency by upgrading three of its four hospital buildings and increasing high-quality microclimate conditions for patients and hospital personnel. This will facilitate the KUH to reach the required reno vation and energy levels to contribute to the local strategic objectives in energy efficiency and national targets. The three hospital buildings falling under the scope of the project are the following: (I) central building, (II) oncology building and the outpatient consultation department, and (III) the infectious disease building. Recent developments TA works have been finalised. The tender doc- uments were completed and approved by the municipality in December 2021. The tender is expected to be published by Q2 / 2022. 56 eeef Impact Report 2021

The eeef’s Technical Assistance Facility An overview The eeef Technical Assistance Facility (eeef TAF) was set up to catalyse investments for public entities within the energy efficiency and small-scale renewable sectors. To date, the eeef has approved eight public beneficiaries, which are currently receiving consultan- cy services in various forms with the common aim of bringing the projects to fruition. Five of the eeef TAF programmes have already published tender (Ferrara Province TA, Modena TA, Kaunas TA, Gijón TA, and Ukmergė TA). Even though the TAF’s scope of work ends once the public beneficiary has launched the tender, the Fund’s support is not limited to provide technical assistance services; it also targets to reach closing and provide project financing through various financial instruments to ensure that the projects materialise. It is the eeef’s intention that the TAF remains active for the foreseeable future, with the mission to turn public sector climate mitigation projects into reality. 125 million euros envisaged total project investment volume supported by the eeef TAF 55.04 potential total leverage factor (weighted average) 3 countries involved 49,439 MWh per year estimated primary energy savings 15,522 t CO2 e per year estimated carbon equivalent emission savings 13 public and municipal authorities involved Technical Assistance Facility 57

Imprint Publisher: The European Energy Efficiency Fund, S.A., SICAV-SIF 31 Z.A. Bourmicht L-8070 Bertrange Grand Duchy of Luxembourg Photo credits: Alex Kraus, Jeff Molliere, Lada Strelnikova, iStockphoto / vm, shutterstock / Roschetzky Photography Disclaimer The European Energy Efficiency Fund SA, SICAV-SIF, a “société d’investissement à capital variable” in- corporated under the laws of the Grand Duchy of Luxembourg, having its registered office at 31 Z.A. Bourmicht; L8070 Bertrange Luxembourg, and reg- istered with the Registre du Commerce et des So- ciétés, Luxembourg under number B 162.036 (the “AIF”). The AIF is an investment fund incorporated as an investment company with variable capital, authorised by the CSSF pursuant to the Luxem- bourg law of 13 February 2007 on specialised in- vestment funds. The AIF was internally managed in accordance with article 4(1) b) of the Law of 2013 and was registered as, a “de minimis” alternative investment fund manager in accordance with arti- cle 3(2) of the Law of 2013 until 10 January 2021. The AIF became fully compliant with the AIFMD as of 11 January 2021, which means that the AIF qual- ifies as an alternative investment fund pursuant to Article 1(39) of the Law of 2013. The Fund is reserved for certain eligible investors as defined in the issue document. The informa- tion given in this report constitutes neither an of- fer nor a product recommendation; it is provid- ed for individual information purposes only. No guarantee is given or intended as to the com- pleteness, timeliness or accuracy of the informa- tion provided herein. This report is neither an is- sue document, as specified by applicable law, nor the financial annual report of the Fund, nor the management report. The current issue docu- ment is obtainable at the registered office of the Fund. Please request the Fund’s issue document, read it carefully and seek advice from your legal and / or tax advisors before investing. The distribution of the issue document and the of- fering of shares and / or notes may be restricted in certain jurisdictions. The issue document does not constitute an offer or solicitation in jurisdictions where such an offer or solicitation is considered unlawful, where a person making such an offer or solicitation is not qualified to do so or where a person receiving the offer or solicitation may not lawfully do so. It is the sole responsibility of any person in possession of the issue document and of any person wishing to apply for shares and / or notes to inform themselves of and to observe all applica- ble laws and regulations of relevant jurisdictions. Distribution of the issue document by an unau- thorised person is prohibited and shall be solely at their own risk. Investors should inform themselves and should take appropriate advice as to possible tax consequences, foreign exchange restrictions or exchange control requirements which they might encounter under the laws of the countries of their citizenship, residence or domicile or other appli- cable laws and which might be relevant to the subscription, purchase, holding, redemption or disposal of the shares and / or notes of the Fund. The shares and / or notes of the Fund have not been and will not be registered under the United States Securities Act of 1933 as amended from time to time (the 1933 Act) or any other applicable securi- ties laws of any of the states of the United States, for offer or sale, directly or indirectly in the United States of America, except pursuant to an exemption from the registration requirements of the 1933 Act as part of their distribution, and the Fund has not been and will not be registered under the United States Investment Company Act of 1940. This work is protected by copyright law. All rights reserved, in particular with respect to translation, reproduction, communication, copying of images and tables, broadcasting, microfilming or repro- duction by other means, as well as storage on data-processing equipment, even where such use only applies to excerpts. Reproduction of this work or parts thereof is permissible only within the scope of the statutory provisions. 58 eeef Impact Report 2021