eeef Impact Report 2023

01 FOREWORD 0202 FOREWORD FROM GIORGIO CHIARION CASONI, CHAIRMAN OF THE BOARD OF DIRECTORS Dear Reader, Investment in clean energy capacity is growing fast. According to the IEA, global investments in clean energy in 2023 rose nearly 40 % compared to 2020 and renewable capacity increase in 2023 was the largest ever, reaching more than 440 GW. At the same time, progress in energy efficiency, being the single most impor- tant policy to avoid energy demand in the net-zero scenario, encountered a set back and fell below the long-term upward trend to 1.3 % compared to 2 % in 2022. Despite some progress, a lot more needs to be done to reach European Union (EU) and global climate goals. Since 2011, the European Energy Efficiency Fund (“eeef” or “the Fund”) has been supporting EU’s climate goals and promoting clean energy investments by levera- ging private and public funds into energy efficiency, renewable energy and clean urban transport measures in the EU Member States. Increasing accessibility to capital and suitable financial instruments, combined with necessary technical assistance, is key for the success of improved energy efficiency in the Member States. And this is what eeef can provide. During 2023, the Fund continued to expand the geographic coverage of its activities and started cooperating with two financial partner institu- tions in Latvia and Estonia by providing sub- ordinated loan facilities for total amount of 25 million euros. Cooperation with partner institu- tions will not only increase access to capital for smaller scale energy efficiency and renewable energy projects, but also give those institutions the opportunity to tap into the Fund’s expertise in sustainable investing and to expand their sustainable loan portfolios beyond the limits of financial resources provided by the eeef. Last year, the Fund also provided a corporate loan of around 16 million euros to an Italian energy services and efficiency upgrade compa- ny. This loan was used to finance high efficiency cogeneration systems for district heating in the municipalities of Bardonecchia and Valtour- nenche, and efficiency measures in building retrofitting in the regions of Piedmont, Liguria and the Aosta Valley. Projects will immediately result in lower energy costs and CO2 footprint after implementation of the investment pro- gramme. The eeef is continuing to support public autho- rities in developing ambitious and innovative sustainable energy investment programmes through its Technical Assistance (TA) Facility. Since its inception, the eeef’s TA Facility has supported twelve public authorities from Spain, Italy, Lithuania, and Latvia to realise their energy and infrastructure upgrade programmes. In October 2023, eeef and EIB’s ELENA Facility signed a new collaboration agreement of up to 1.9 million euros over three years, allowing eeef to expand the TA Facility and provide support to more public authorities. During 2023, the Barcelona Metropolitan Area and the University of Oviedo joined the TA facility programme to receive technical support in preparing for street lighting and building efficiency upgrade projects, and in assessing the feasibility of expanding renewable energy capacity for district heating. Early in 2024, several more public authorities have reached out to eeef looking for TA support, including from Latvia, Lithuania, Romania and Spain, and active collaboration with the authorities will commence later this year. We will continue to support projects and initia- tives that make a positive difference to and the energy efficiency and renewable energy efforts of communities throughout EU. The eeef will build on the success of the projects already financed while seeking to expand its project pipeline in new regions. Our diverse financing instruments and resour- ces derived from combining public and private funding are vital for rolling out measures to reach EU climate goals and will continue to facilitate the energy transition in the EU. Giorgio Chiarion Casoni Chairman of the Board of Directors Director, InvestEU and financial institutions European Commission

07 THE EEEF IN 2023 08 08 5 3 2 million euros raised from investors active investments in 9 Member States and the UK 7 1 0 6 4 , 0 4 7 tonnes of carbon dioxide equivalents, cumulative carbon savings from Fund inception to Q4 2023 9 2 0 , 8 1 3 , 1 megawatt hours cumulative primary energy savings from Fund inception to Q4 2023 € 7 6 1 million euros currently committed to projects HIGHLIGHTS2023 public authorities benefited from the eeef’s investments since the Fund’s inception 6 5 € 7 2 2 million euros committed to pro- jects since inception € 4 matured investments *investments 5 are taxonomy 1 aligned eeef TAF projects in 4 Member States 2 1 *Since two new investments – Signet Bank and Coop Pank – were signed in the fourth quarter of 2023 and no sub-loan disbursements were made by the end of 2023, there is no analysis on taxonomy alignment.

09 THE EEEF IN 2023 10 10 INVESTMENT ACTIVITY REPORT VENLO, THE NETHERLANDS € 8.5 m senior debt facility to the city of Venlo for smart public lighting CARDENDEN, SCOTLAND, THE UNITED KINGDOM € 2.2 m senior debt facility to the Ore Valley Housing Association via the SPV Cardenden Heat and Power ORLÉANS, FRANCE € 5.1 m shareholder loan and equity investment for the city of Orléans’ CHP plant RENNES, FRANCE € 6.9 m shareholder loan and equity investment for the city of Rennes’ CHP plant MADRID, SPAIN € 2.5 m forfaiting facility to the Universidad Politécnica de Madrid via Enertika SANTANDER, SPAIN € 9.2 m forfaiting facility to the city of Santander via Elecnor to upgrade existing street lighting GIJÓN, SPAIN € 19.5 m forfaiting facility to Gijón via Acciona ESCO to renovate lighting points on public streets and buildings ALENTEJO REGION, PORTUGAL € 12.1 m forfaiting facility to CIMAC via I Quatro to upgrade existing street lighting VILA DO CONDE, PORTUGAL € 5.1 m forfaiting facility to Vila do Conde via the Consortium ISETE / AMENER / I-TRES to upgrade existing street lighting BERLIN, GERMANY € 0.9 m forfaiting facility to the Jewish Museum Berlin Foundation via the ESCO of Johnson Controls ESTONIA € 15 m subordinated loan to Coop Pank to finance energy efficiency, renewable energy, and clean urban transport projects in Estonia LATVIA € 10 m subordinated loan to Signet Bank to finance ener- gy efficiency, renewable energy, and clean urban trans- port projects in Latvia KLAIPĖDA, LITHUANIA € 4.9 m shareholder loan and equity investment in the JV “Dancer Mobility” with Lithuanian electric bus manufacturer UAB “Vejo projektai” VILNIUS, LITHUANIA € 10 m equity investment in the investment platform TIPS with the Public Investment Development Agency Invega BARDONECCHIA, PIEDMONT, VALTOURNENCHE, AOSTA VALLEY, ITALY € 15.7 m senior debt investment to Energetica S.p.A. to imple- ment energy efficiency upgrades in northern Italy BOLOGNA, ITALY € 30.2 m senior debt and VAT facility to Progetto ISOM for the upgrade of the University Hospital Sant’Orsola-Malpighi ROZZANO, NOGARA AND CONCORDIA SAGITTARIA, ITALY € 8.7 m shareholder loan and equity investment in the JV Illuminated Cities with Siram by Veolia for a portfolio of investments Investments to Banca Transilvania and the University of Applied Sciences have been fully repaid by the end of 2023.

11 11 THE EEEF IN 2023 GERMANY JEWISH MUSEUM BERLIN The Jewish Museum Berlin and the energy service company (ESCO) Johnson Con- trols entered into an energy performance contract (EPC) for the museum to provide optimisation of the heating, ventilation and air conditioning and an efficient energy management system. The eeef’s investment totalled EUR 0.9 m in the form of a forfaiting facility. The annual primary energy savings for 2023 equated to 11,779 MWh. Annual Carbon Emission Savings (tCO2e) 30,000 25,000 20,000 15,000 10,000 5,000 total accumulated: 27,112 2,667 2,811 2,941 3,326 3,359 24,445 2,936 1,512 1,512 1,512 INVESTMENT COMPLETED 1,512 1,512 0 1,512 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ 12 ITALY ENERGETICA The eeef signed a corporate loan agreement of EUR 15.7 m with Energetica S.p.A. (Energetica) with maturity until December 2030. The loan will be used by Ener- getica to finance energy efficiency works in building retrofitting and upgrading activities for cogeneration district heating projects. The district heating projects are located in the Municipalities of Bardonecchia and Valtournenche, whereas the retrofitted buildings are in Piedmont, Liguria and Aosta Valley. Energetica plans to implement three projects by mid-2025, during which it will fully utilize the loan amount. The projects will deliver on an average 45.59 % savings in primary energy and on an average 44.62 % savings in CO2e emission annually compared to the current baseline. Annual Primary Energy Savings (MWh) accumulated savings total accumulated: 119,719 11,779 120,000 100,000 80,000 60,000 40,000 20,000 6,691 6,691 6,691 INVESTMENT COMPLETED 6,691 6,691 12,416 13,010 14,721 14,775 12,872 107,940 0 6,691 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ accumulated savings KEY FIGURES TYPE OF INVESTMENT: FORFAITING FACILITY TOTAL PROJECT SIZE (€M): 1.4 TERM: 13 YEARS ACTUAL T CO2E EMISSION SAVINGS IN 2023: 2,667 KEY FIGURES TYPE OF INVESTMENT: CORPORATE LOAN TERM: 7 YEARS TOTAL PROJECT SIZE (€M): 19.2 ESTIMATED T CO2E EMISSION SAVINGS IN A YEAR: 5,366 Y C N E I C I F F E Y G R E N E

13 13 THE EEEF IN 2023 ITALY ILLUMINATED CITIES The Città Illuminate S.r.l. (Illuminated Cities) is a Joint Venture (JV) between the eeef and Siram by Veolia, targeting a portfolio of street lighting projects in Italy, mainly benefitting small to medium-sized municipalities. The JV realised three projects in the Municipalities of Rozzano, Nogara and Concordia Sagittaria, in the provinces of Milano, Verona Venice, respectively. These projects aim to enhance public infrastructure whilst reducing public energy con- sumption. The eeef’s investment totalled EUR 8.7 m via equity and shareholder loan. Y C N E I C I F F E Y G R E N E Annual Carbon Emission Savings (tCO2e) Annual Primary Energy Savings (MWh) 20,000 15,000 10,000 5,000 0 total accumulated: 16,039 2,766 2,600 2,795 13,273 3,010 INVESTMENT COMPLETED 3,245 1,623 2018 2019 2020 2021 2022 2023+ accumulated savings 150,000 120,000 90,000 60,000 30,000 0 total accumulated: 123,090 22,380 22,380 22,380 100,710 22,380 INVESTMENT COMPLETED 22,380 11,190 2018 2019 2020 2021 2022 2023+ accumulated savings 14 ITALY UNIVERSITY HOSPITAL SANT’ORSOLA-MALPIGHI The project entity, Progetto ISOM (SPV), signed a concession agreement with the University Hospital. eeef provided a project and VAT bond facility of EUR 30.2 m. The initiatives aim to improve the energy efficien- cy of the entire fluid pro d uction, distribution system and reduce energy consumption of the hospital facility through the adoption of energy-efficient equipment such as centri- fugal chillers and absorbers, the reconstruc- tion of the heat distribution networks, the renovation of heat exchange substations and the inclusion of an underground tri-genera- tion plant for the combined production of cooling, heat and power. Annual Carbon Emission Savings (tCO2e) 150,000 120,000 90,000 60,000 30,000 12,662 7,881 INVESTMENT COMPLETED 7,881 7,881 total accumulated: 137,640 15,090 15,527 122,549 16,190 16,523 15,941 16,153 0 5,911 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ Annual Primary Energy Savings (MWh) 600,000 500,000 400,000 300,000 200,000 100,000 73,372 68,480 66,342 53,866 34,570 INVESTMENT COMPLETED 34,570 34,570 accumulated savings total accumulated: 596,946 66,198 67,784 71,266 530,749 0 25,928 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ accumulated savings KEY FIGURES KEY FIGURES TYPE OF INVESTMENT: EQUITY AND SHAREHOLDER LOAN TOTAL PROJECT SIZE (€M): 10 TYPE OF INVESTMENT: SENIOR DEBT AND VAT FACILITY TOTAL PROJECT SIZE (€M): 41 TERM: 12 YEARS ESTIMATED T CO2E EMISSION SAVINGS IN 2023: 2,766 TERM: 20 YEARS ACTUAL T CO2E EMISSION SAVINGS IN 2023: 15,090

15 15 THE EEEF IN 2023 PORTUGAL CIMAC The eeef signed the 12-year forfaiting facility of EUR 12.1 m with I-Quatro LDA (ESCO) to implement the aggregated street lighting infrastructure transaction, with the mission to upgrade over 56,000 luminaires within 14 municipalities, including the UNESCO World Heritage site of Évora, represented by Comuni- dade Intermunicipal do Alentejo Central (CIMAC). 16 PORTUGAL VILA DO CONDE eeef signed the 12-year forfaiting facility of EUR 5.1 mil- lion with the consortium ISETE / AMENER / I-TRES (ESCO) to finance renovation of the street lighting infrastructure in the municipality of Vila do Conde in Portugal. The project completed the replacement of 18,547 sodium vapour lamps with energy-efficient LED luminaires throughout Vila do Conde. Y C N E I C I F F E Y G R E N E Annual Carbon Emission Savings (tCO2e) Annual Primary Energy Savings (MWh) 30,000 25,000 20,000 15,000 10,000 5,000 INVESTMENT COMPLETED 0 1,379 2018 total accumulated: 25,477 250,000 3,053 200,000 total accumulated: 219,950 42,780 3,733 4,753 150,000 42,980 5,669 22,424 100,000 42,718 40,654 177,170 6,890 50,000 INVESTMENT COMPLETED 40,654 2019 2020 2021 2022 2023+ accumulated savings 0 10,164 2018 2019 2020 2021 2022 2023+ accumulated savings Annual Carbon Emission Savings (tCO2e) Annual Primary Energy Savings (MWh) 5,000 4,000 3,000 2,000 total accumulated: 4,547 1,223 1,435 INVESTMENT COMPLETED 3,324 1,000 1,889 0 2021 2022 2023+ accumulated savings 50,000 40,000 30,000 total accumulated: 44,810 17,144 20,000 16,517 INVESTMENT COMPLETED 27,666 10,000 0 11,149 2021 2022 2023+ accumulated savings KEY FIGURES TYPE OF INVESTMENT: FORFAITING FACILITY TOTAL PROJECT SIZE (€M): 16.6 KEY FIGURES TYPE OF INVESTMENT: FORFAITING FACILITY TOTAL PROJECT SIZE (€M): 7.7 TERM: 12 YEARS ACTUAL T CO2E EMISSION SAVINGS IN 2023: 3,053 TERM: 12 YEARS ACTUAL T CO2E EMISSION SAVINGS IN 2023: 1,223

17 17 THE EEEF IN 2023 SPAIN UNIVERSIDAD POLITÉCNICA DE MADRID eeef provided financing of EUR 2.5 million for the replacement of existing oil boilers supplying hot water and heating to the Uni- versidad Politécnica of Madrid (“UPM”). The project aimed to improve the heat and wa- ter supply systems across the campus and to reduce CO2e emissions by switching to a cleaner fuel source. It replaced 63 gas oil boilers, consuming on average of 946,479 litres of gas oil per year, with 66 natural gas boilers in all 32 campus buildings. 18 SPAIN MUNICIPALITY OF SANTANDER The project involved an upgrade of the existing street lighting luminaires from pre- dominantly high-pressure sodium vapour lamps to the last generation PHILIPS LEDs. 22,300 units of lighting points were re- placed. A system of UVEX wireless sensors connects the whole infrastructure point by point with the city’s digital communication network and the remote CEMILUX control system. The eeef provided a forfaiting facility with EUR 9.2 million to finance the project. Annual Carbon Emission Savings (tCO2e) Annual Carbon Emission Savings (tCO2e) 10,000 8,000 6,000 4,000 2,000 0 1,042 1,042 total accumulated: 8,297 1,042 7,255 791 994 1,225 INVESTMENT COMPLETED 215 852 1,094 2015 2016 2017 2018 2019 2020 2021 2022 2023+ accumulated savings Annual Primary Energy Savings (MWh) Y C N E I C I F F E Y G R E N E 20,000 15,000 10,000 5,000 total accumulated: 15,068 1,621 1,621 1,621 1,230 1,546 1,908 13,447 2,795 INVESTMENT COMPLETED 2,181 0 545 2015 2016 2017 2018 2019 2020 2021 2022 2023+ accumulated savings KEY FIGURES TYPE OF INVESTMENT: FORFAITING FACILITY TOTAL PROJECT SIZE (€M): 2.5 25,000 20,000 15,000 10,000 2,623 3,397 total accumulated: 24,649 2,579 22,070 4,404 4,908 5,000 INVESTMENT COMPLETED 4,224 2,514 0 2017 2018 2019 2020 2021 2022 2023+ accumulated savings Annual Primary Energy Savings (MWh) 300,000 250,000 200,000 150,000 100,000 total accumulated: 258,059 39,795 39,822 39,773 39,462 218,264 39,435 50,000 INVESTMENT COMPLETED 39,848 0 19,924 2017 2018 2019 2020 2021 2022 2023+ accumulated savings KEY FIGURES TYPE OF INVESTMENT: FORFAITING FACILITY TOTAL PROJECT SIZE (€M): 9.2 TERM: 9 YEARS ESTIMATED T CO2E EMISSION SAVINGS IN 2023: 1,042 TERM: 14 YEARS ACTUAL T CO2E EMISSION SAVINGS IN 2023: 2,579

19 19 THE EEEF IN 2023 SPAIN GIJÓN eeef and Acciona ESCO S.L. signed a forfait- ing facility of EUR 19.5 million with a term of 11 years to finance the renovation of lighting points on public streets and buil- dings in the Municipality of Gijón, Spain, in alignment with a prepared investment programme with in the eeef Technical Assistance Facility. The project involves the replacement of 42,000 luminaires on streetlights and in public buildings. As per conservative estimates, the project is expected to deliver at least 48.02 % in pri- mary energy and CO2 savings annually com- pared to the current baseline, representing 37,005 MWh and 2,446 tCO2e, respectively. By the end of 2023, the construction work has been completed and full disbursement was made to the project. Annual Carbon Emission Savings (tCO2e) Annual Primary Energy Savings (MWh) Y C N E I C I F F E Y G R E N E 3,000 2,500 2,000 1,500 1,000 500 0 total accumulated: 2,813 2,201 INVESTMENT COMPLETED 612 612 2022 2023+ accumulated savings 50,000 40,000 30,000 20,000 10,000 0 total accumulated: 42,556 33,305 INVESTMENT COMPLETED 9,251 9,251 2022 2023+ accumulated savings 20 THE NETHERLANDS CITY OF VENLO The city of Venlo and the eeef signed a long- term financing contract for EUR 8.5 m. The project upgraded the city’s street lighting to reduce energy consumption and CO2e emissions, as well as saving the public budget, as the city’s existing public light- ing was the largest energy consumer in its electricity bill. In total, 1,674 lighting poles were replaced and 17,270 luminaires were exchanged with LED technology. Annual Carbon Emission Savings (tCO2e) 10,000 8,000 6,000 4,000 2,000 974 977 INVESTMENT COMPLETED 880 946 633 771 873 917 total accumulated: 8,285 654 7,631 0 660 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ Annual Primary Energy Savings (MWh) accumulated savings total accumulated: 46,435 4,868 41,567 50,000 40,000 30,000 20,000 10,000 0 4,868 4,868 4,868 4,868 4,871 4,634 4,633 INVESTMENT COMPLETED 4,632 3,325 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ accumulated savings KEY FIGURES TYPE OF INVESTMENT: FORFAITING FACILITY TOTAL PROJECT SIZE (€M): 23.6 TERM: 11 YEARS ESTIMATED T CO2E EMISSION SAVINGS IN 2023: 2,201 KEY FIGURES TYPE OF INVESTMENT: SENIOR DEBT TOTAL PROJECT SIZE (€M): 8.6 TERM: 15 YEARS ACTUAL T CO2E EMISSION SAVINGS IN 2023: 654

21 21 THE EEEF IN 2023 FRANCE CITY OF ORLÉANS FRANCE CITY OF RENNES 22 Dalkia France and eeef invested in the Orléans Biomasse Énergie, the project’s special purpose vehicle (SPV), which ope- r ates a combined heat and power (CHP) plant with an installed capacity of 7.5 MW in electricity and 17 MW in thermal heat. The plant supplies heat to one of the districts in the City of Orléans and sells electricity to Électricité de France (EDF). The project ena- bles a decentralised energy supply using an existing district heating network. The Fund invested EUR 5.1 million in the SPV. Dalkia France and eeef invested in the Rennes Biomasse Énergie, the project’s SPV, which operates a CHP facility with an electrical output of 10.4 MW and a thermal output of 22 MW over 20 years. The project enables a decentralised energy supply for the City of Rennes using an existing district network. The Fund invested EUR 6.9 million in the SPV. Annual Carbon Emission Savings (tCO2e) Annual Carbon Emission Savings (tCO2e) Y G R E N E E L B A W E N E R 200,000 150,000 100,000 50,000 0 13,900 18,386 13,457 17,266 total accumulated: 179,840 14,813 165,027 15,294 17,920 18,533 18,885 INVESTMENT COMPLETED 17,293 14,093 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ Annual Primary Energy Savings (MWh) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 -28,796 -50,000 INVESTMENT COMPLETED -34,647 -37,578 -24,439 -32,035 -37,564 -33,599 -33,462 -27,127 -37,455 -100,000 -150,000 -200,000 -250,000 -300,000 -350,000 -400,000 accumulated savings 2023+ accumulated savings -326,702 -29,969 total accumulated: -364,157 10,991 13,365 total accumulated: 137,162 11,911 125,251 12,009 12,695 11,592 150,000 120,000 90,000 60,000 30,000 11,286 13,258 14,434 INVESTMENT COMPLETED 20,497 0 5,124 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ Annual Primary Energy Savings (MWh) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 0 -9,812 -39,247 INVESTMENT COMPLETED -51,296 accumulated savings 2023+ accumulated savings -100,000 -200,000 -300,000 -400,000 -500,000 -42,892 -47,703 -57,363 -435,090 -47,316 -50,627 -39,602 -49,232 -22,709 total accumulated: -457,799 KEY FIGURES KEY FIGURES TYPE OF INVESTMENT: EQUITY AND SHAREHOLDER LOAN TOTAL PROJECT SIZE (€M): 36.0 TYPE OF INVESTMENT: EQUITY AND SHAREHOLDER LOAN TOTAL PROJECT SIZE (€M): 47.6 TERM: 19 YEARS ACTUAL T CO2E EMISSION SAVINGS IN 2023: 14,813 TERM: 20 YEARS ACTUAL T CO2E EMISSION SAVINGS IN 2023: 11,911

23 THE EEEF IN 2023 LITHUANIA DANCER MOBILITY eeef and UAB “Vejo Projektai”, a Lithuanian manufacturer of electric buses, established a Joint Venture “Dancer Mobility” to provide all-inclusive operational lease services of electric buses manufactured in Lithuania to public authorities. Dancer Mobility will finance the purchase of e-buses and their operation in the framework of all-inclusive operational leases provided by the compa- ny to public authorities and covering the bus usage, charging infrastructure, green energy supply and full maintenance. The eeef investment totalled EUR 4.9 million. Annual Carbon Emission Savings (tCO2e) Annual Primary Energy Savings (MWh) 6,000 5,000 4,000 3,000 2,000 1,000 0 total accumulated: 5,367 1,344 1,344 INVESTMENT COMPLETED 1,344 4,032 total accumulated: 36,368 9,092 9,092 9,092 INVESTMENT COMPLETED 27.276 40,000 35,000 30,000 25,000 20,000 15,000 10,000 1,344 5,000 9,092 2020 2021 2022 2023+ accumulated savings 0 2020 2021 2022 2023+ accumulated savings 24 UNITED KINGDOM ORE VALLEY HOUSING ASSOCIATION The eeef provided a loan of EUR 2.2 million to Cardenden Heat and Power (CHAP), a subsidiary of the Ore Valley Housing Associ- ation (OVHA), for the development of a pro- ject scope for an onshore 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. The boilers were leased to OVHA, and the wind plant benefits from the national Feed in Tariff. Annual Carbon Emission Savings (tCO2e) 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 444 403 total accumulated: 3,851 447 3,404 528 499 582 INVESTMENT COMPLETED 758 190 2016 2017 2018 2019 2020 2021 2022 2023+ accumulated savings Annual Primary Energy Savings (MWh) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 total accumulated: 35,605 4,903 5,125 30,702 4,287 5,331 4,672 4,903 5,000 INVESTMENT COMPLETED 4,750 0 1,635 2016 2017 2018 2019 2020 2021 2022 2023+ accumulated savings KEY FIGURES TYPE OF INVESTMENT: EQUITY AND SHAREHOLDER LOAN TOTAL PROJECT SIZE (€M): 6.2 KEY FIGURES TYPE OF INVESTMENT: SENIOR DEBT TOTAL PROJECT SIZE (€M): 4.3 TERM: UP TO 10 YEARS ESTIMATED T CO2E EMISSION SAVINGS IN 2023: 1,344 TERM: 16 YEARS ACTUAL T CO2E EMISSION SAVINGS IN 2023: 447 Y G R E N E E L B A W E N E R / Y C N E I C I F F E Y G R E N E T R O P S N A R T N A B R U N A E L C

25 THE EEEF IN 2023 ROMANIA BANCA TRANSILVANIA Banca Transilvania (BT), one of the leading banks in Romania, has received green lending of EUR 25 million from eeef to support energy efficiency and renewable energy investments in Romania. BT is using eeef funding to give financial support to public and private building owners, home- owner / condominium associations, municipa- lities, public sector entities and private sector companies acting on behalf of the public sector. At the end of 2023, BT had financed and enabled 94 projects with cumulative savings of 438,391 MWh in primary energy. The loan has been fully repaid by the end of 2023. Annual Carbon Emission Savings (tCO2e) 120,000 100,000 80,000 60,000 40,000 total accumulated: 100,667 6,819 6,342 5,692 93,848 7,169 8,040 4,697 4,826 15,831 18,204 20,000 INVESTMENT COMPLETED 15,439 0 7,608 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ accumulated savings KEY FIGURES TYPE OF INVESTMENT: SUBORDINATED DEBT TOTAL PROJECT SIZE (€M): 25.0 TERM: 10 YEARS ESTIMATED T CO2E EMISSION SAVINGS IN 2023: 6,819 26 Annual Primary Energy Savings (MWh) 500,000 400,000 300,000 200,000 100,000 30,313 25,194 total accumulated: 438.391 34,386 404,005 30,972 34,488 20,379 20,925 69,947 76,498 INVESTMENT COMPLETED 63,830 31,504 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ accumulated savings 2023 Primary Savings Contribution from Invested Sub-project Type 2023 CO2e Savings Contribution from Invested Sub-project Type 8% 14% 55% EE-Building Retroﬁt EE-Building Retroﬁt and RE-E-mobility RE-PV and EV charging PORTFOLIO FACTS 5% 15% 65% EE-Building Retroﬁt EE-Building Retroﬁt and RE-E-mobility RE-PV and EV charging ACTIVE SUBLOAN PROJECTS BY THE END OF 2023: 87 TECHNOLOGIES FUNDED IN THE 87 ACTIVE SUBLOAN PROJECTS: 3 TONS OF CUMULATIVE CO2E SAVINGS FOR ALL FUNDED PROJECTS: 100,667 MEGAWATT HOURS OF CUMULATIVE PRIMARY ENERGY SAVINGS FOR ALL FUNDED PROJECTS: 438,391 T R O P S N A R T N A B R U N A E L C / Y G R E N E E L B A W E N E R / Y C N E I C I F F E Y G R E N E

T R O P S N A R T N A B R U N A E L C / Y G R E N E E L B A W E N E R / Y C N E I C I F F E Y G R E N E 28 27 THE EEEF IN 2023 LITHUANIA TIPS PLATFORM The Public Investment Development Agency (Invega) of Lithuania, together with the eeef, agreed to set up a Sustainable Resources Investment Development plat- form (TIPS), which aims at financing sustai- nable investments contributing to the direct effects of climate change mitigation. The eeef investment is EUR 10 million. TIPS aims to finance “green” investments that gene- rate energy savings, reduce CO2 emissions, and promote renewable energy use in Lithuania. Annual Carbon Emission Savings (tCO2e) Annual Primary Energy Savings (MWh) 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 total accumulated: 5,919 3,099 INVESTMENT COMPLETED 3,099 2,819 2022 2023+ accumulated savings 100,000 80,000 60,000 40,000 total accumulated: 83,851 40,909 INVESTMENT COMPLETED 20,000 40,909 42,942 0 2022 2023+ accumulated savings KEY FIGURES TYPE OF INVESTMENT: EQUITY TOTAL PROJECT SIZE (€M): 12 TERM: UP TO 12 YEARS OBSERVED T CO2E EMISSION SAVINGS IN 2023: 2,819 PORTFOLIO FACTS APPROVED PROJECTS WITH 8 COUNTERPARTIES: 10 TECHNOLOGIES FUNDED IN THE APPROVED PROJECTS: 3 TONS OF CUMULATIVE CO2E SAVINGS FOR THE ACTIVE PROJECTS: 5,919 MEGAWATT HOURS OF CUMULATIVE PRIMARY ENER- GY SAVINGS FOR THE ACTIVE PROJECTS: 83,851

T R O P S N A R T N A B R U N A E L C / Y G R E N E E L B A W E N E R / Y C N E I C I F F E Y G R E N E 29 THE EEEF IN 2023 LATVIA SIGNET BANK ESTONIA COOP PANK 30 The eeef signed a subordinated loan facility of EUR 10 m with Signet Bank with the aim of financing energy efficiency and smaller- scale renewable energy projects in Latvia, primarily through the provision of financing to public sector entities and private sector companies acting on behalf of the public sector. The facility will be disbursed in 2 steps: the first EUR 5 m was invested upon signing and the remaining EUR 5 m in the course of 2024 subject to utilisation of the 1st disbursement. The duration of both tran- ches is 10 years, with maturity in 2033 and 2034 respectively. The eeef signed a subordinated loan of EUR 15 m with Coop Pank AS, Estonia with the aim of financing energy efficiency and smaller-scale renewable energy projects in Estonia, primarily through the provision of financing to public sector entities and private sector companies acting on behalf of the public sector. The facility was disbursed in a single pay- ment by 29 February 2024. Duration of the facility is 10 years with maturity in 2034. Before expiration of the first 5 years of the facility, parties may agree to extend the du- ration of the facility by another 5 years (up to 15 years in total). KEY FIGURES TYPE OF INVESTMENT: SUBORDINATED DEBT TOTAL PROJECT SIZE (€M): 10.0 TERM: 10 YEARS KEY FIGURES TYPE OF INVESTMENT: SUBORDINATED DEBT TOTAL PROJECT SIZE (€M): 15.0 TERM: 10 YEARS

33 33 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 34 34 PROJECT ASSESSMENT AND MONITORING Eligible projects The eeef can invest in a range of energy efficiency, clean urban transport and small-scale renewable energy technologies, providing the carbon or primary energy savings investment criteria are met. Each project must achieve at least 30 % primary 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 techno- logies, the initial technical assessment and ongoing moni toring of investments must strike the correct balance between accuracy and practicality of implementation. How the eeef evaluates technical eligibili- ty is based on the project’s technology and loan size; for example, small standard (e. g. street lighting) project savings can be calcu- lated using validated calculations from the Investment Manager’s carbon environment impact management (CEIM) tool, greenstem™ (greenstem). For projects with higher invest- ment volumes and / or more complex technolo- gies, detailed energy analyses are required in the form of third-party 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 energy consumption and then conduct a post-project 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 project partners on how to conduct project analysis via third-party-validated annual audit templates. This ensures the entire portfo- lio reports using a consistent methodology. greenstem™ All of the eeef portfolios-reported impact indi- cators are tracked in greenstem™, a proprietary web-based tool from the Investment Manager that automatically and consistently calculates anticipated and realised energy, primary ener- gy, and carbon savings. As of the end of 2023, greenstem™ is in the process of migrating its platform to provide a more resilient, secure and functional solution. To ensure data compatibili- ty and avoid data loss, the eeef aims to include the impact metrics for the years under review in the new platform until the platform transfer is safely completed. For small loans and standard technologies, greenstem™ completes calcula- tions based on project-specific data inputs and project location / technology conversion factors. The tool stores up-to-date energy and emission conversion factors to ensure a consistent repor- ting approach across the portfolio. Factor sour- ces include the Chartered Institution of Building Services Engineers for technology benchmark data and the Intergovernmental Panel on Climate Change for the conversion of energy data into greenhouse gas emissions. Electricity emission factors are sourced from the Interna- tional Energy Agency and are updated annually in line with ISO 14064-2, the carbon accounting standard followed. All calculations and data sources used within the tool have been valida- ted by a third-party engineering company. greenstem™ should provide comprehensive, timely and accurate reporting charts and dash- boards that have been configured specifically for eeef user groups. The tool is flexible and can be customised to include additional technolo- gies in the portfolio. 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 manage- ment system (SEMS) defines the respective roles and responsibilities of the Fund and its partner institutions in promoting social and environmental sustainability. eeef’s SEMS also outlines the performance requirements and procedures, and assesses and man ages the Social and Environmental adverse risks in relation to eeef investments. In general, these shall be in accordance with the European Investment Bank (“EIB”) State- ment on Environmental and Social Principles and Standards, EU Directives on Environmental Impact Assessment (“EIA”), and IFC Perfor- mance Standards1. Regarding impact manage- ment strategy, eeef is aligned to Operating Prin- ciples for Impact Management. For both types of investments – direct and financial institution investments – the eeef SEMS has specific per- formance requirements and procedures that are applied. Compliance with these is assessed during the due diligence process and monitored later on throughout the lifetime of the project. The SEMS also serves as a mechanism to en- sure the investment does no significant harm (DNSH) to any environment and social objec- tive and follows good governance practices. Adherence to the DNSH is derived by matching the IFC Performance Standards with the targets defined in Art. 17 of Regulation (EU) 2020 / 852. eeef considers the principal adverse impacts (PAIs) of its investment decisions on sustaina- bility factors defined by the Sustainable Finance Disclosure Regulation (SFDR)2. For a detailed description of eeef’s SEMS policy, please refer to our webpage: https://www.eeef.lu / social- environmental-standards.html 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, environ- mental impact assessment process, E&S principles and standards 3. SOCIAL: Social assessment, involuntary resettlement, vulnerable groups, indi- genous people, labour standards, etc. ENVIRONMENT, BIODIVERSITY AND CLIMATE CHANGE: Environmental / transboundary impacts, protected ar eas, critical habitants, biodiversity, forestry, cultural heritage, vulnerability to climate change, climate change mitigation, resource efficiency and pollution prevention 1 IFC Performance Standards: https://www.ifc.org/wps/wcm/connect/c02c2e86-e6cd-4b55-95 a2- b3395d204279/IFC_Performance_Standards.pdf?MOD=AJPERES&CVID=kTjHBzk 2 Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector

35 35 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 36 36 Going forward for the new investments closed in 2023 onwards, analysis of the new projects in the due diligence phases will allow the Fund to assess actual and potential areas of impact with more precision, as well as provide compa- rability across various investments and repor- ting periods. As a visualisation tool to depict the five impact dimensions, the “impact spi- der” will be reverted to. Following is an example of such an “impact spider” for a sample direct investment project under construction. Value chain integration SEMS Value addition Co2e % savings Primary energy % savings Baseline Post-implementation estimation After-implementation review PRIMARY ENERGY AND GREENHOUSE GAS EMISSIONS SAVINGS 2023 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 in CO2 equivalents 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 savings reporting. Due to the wide variety of technologies included in the eeef’s portfolio, the Investment Manager has developed a stan- dardised 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 savings were reported for the entire portfolio of investments / si- gned commitments for a range of energy efficiency and re- newable technologies, including including CHP biomass, small-scale wind and electric vehicles. Once a project has been in operation 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 advances in static data, and therefore project savings can change annually. As shown below, these projects achieved total accumu- lated savings of 687,682 t CO2e and 1,246,378 MWh of primary energy savings through the end of 2023. All project savings are calculated following the Internati- onal Performance Measurement and Verification Protocol (IPMVP) for energy accounting and ISO 14064 for carbon accounting. All methodologies used by the eeef are vali- dated by a global engineering company. Currently, all pro- jects with concrete data are reporting in alignment with these guidelines, and all new projects are aligned with these frameworks. Project savings represent the savings amount contributed from total project investment size, i.e. from eeef investment stake and remaining investor(s)’ stake into the respective project. The eeef uses up-to- date and project-specific conversion factors from sour- ces including the International Energy Agency and the Greenhouse Gas Protocol. Therefore, there is a reduction in annual carbon emission savings in some projects (i.e. Santander, Venlo) due to the annual project-specific con- version factors used by the eeef.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 renewable energy. The entire project portfolio covers EE, KEY TECHNOLOGIES CURRENTLY UNDER CONSTRUCTION / FINALIZED IN THE PORTFOLIO: Building upgrades Street lighting Wind and solar Combined heat and power Electric cars Project Name Banca Transilvania CIMAC City of Orléans City of Rennes City of Venlo Dancer Mobility Gijón Illuminated Cities Jewish Museum Berlin Municipality of Santander Ore Valley Housing Association Universidad Politécnica de Madrid University Hospital S. Orsola Malpighi Vila do Conde TIPs platform Total (all projects) Total (EE & CUT only) Reporting as of Q4 2023 Cumulative Primary Energy Savings (MWh) Primary Energy Savings (%) Cumulative CO2e Savings (t CO2e) Carbon Savings (%) 438.391 219.950 -356.671 -457.799 46.435 36.368 42.556 123.090 119.719 258.059 35.605 15.068 596.946 44.810 83.851 1.246.378 2.060.848 50 77 -37 -20 60 92 48 56 72 80 99 15 30 69 100 53 65 100.667 25.477 179.840 137.162 8.285 5.376 2.813 16.039 27.112 24.658 3.851 8.297 137.640 4.547 5.919 687.682 – 50 77 62 50 60 100 48 56 75 80 96 36 32 69 100 66 – CUT and RE projects. The cumulative Banca Transilvania savings represent 87 subprojects. The cumulative TIPs platform savings entail approved 10 subprojects. The respective portfolio’s percentage savings are calculated based on all active (completed) subproject savings. Pro- jects contribute to cumulative savings until the sub-loan has matured from the portfolio – i. e. at loan maturity. For carbon savings, cumulative and percentage savings are based on the entire portfolio, percentage savings use the average. For primary energy, cumulative and percen- tages saving are presented for projects from the portfolio which provide primary energy savings, ie. Energy effici- ency and clean urban transport projects. For the sake of completeness, the cumulative and percentage primary energy savings are also provided for all projects. Cumula- tive data include calculations from financial close to loan maturity. Savings are for total project investment volume (ie. eeef and non-eeef investments). Savings are 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. For exa- mple, as of end of 2023, Illuminated Cities projects are still within one year operation after the approved project completion; project Gijón was under construction almost until the end of 2023. Therefore, we also use estimation here. As for Universidad Politécnica de Madrid savings are based on preliminary data, which are subject to changes once the finalized readings are available. The savings of two new investments with Signet Bank and Coop Pank, signed in 2023, are not yet included in the above table. Since there has been no disbursement to sub-loans by the end of 2023. The savings of newly signed Energetica project is not included, as the project construction did not start as of the end of 2023.

37 37 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 38 38 EU TAXONOMY ALIGNMENT ASSESSMENT The European Union Regulation 2020 / 852 – better known as “EU Taxonomy for sustainable activities” (“Taxonomy”) – is a regulation in the context of environmentally sustainable investments and an important tool for market transparency. The in- strument enables investors to classify economic activities more easily and to decide whether eco- nomic activities are environmentally sustainable and, thus, worth investing in from an environmental perspective. As an ex-post study, the Taxonomy has the potential to determine to what extent the active eeef-investments to date have been channeled into sustainable activities, and ultimately to guide eeef to continue and enhance its previous impact creation. For this reason, eeef has engaged an external con- sultant with experience in evaluating sustainable activities – Arcadis Italia S.r.l. (“Arcadis”). Arcadis supports its clients for the entire life cycle of natural and built assets, specialising in urban regener a- tion, land reclamation design, water treatment, and sustainable buildings and industrial settlements design. Building on its extensive market experience since 2008, the firm was commissioned by eeef to conduct an independent Taxonomy alignment assessment for its portfolio of current investments. More specifically, eeef wanted to know which ac- tivities within its portfolio contribute substantially to climate change mitigation and, at the same time, IDENTIFICATION OF ELIGIBILITY BY ACTIVITY NACE (Statistical Classification of Economic Activities in the European Community) codes describing the economic activities related to the project have been identified. Furthermore, the correct alignment path for indications provi- ded by the EU Taxonomy Compass, with identi- fication of the sector and the economic activity, has been defined. > Transition activities: Activities for which there are no technologically and economically fea- sible low-carbon alternatives but that support the transition to a climate-neutral economy. > Enabling activities: Activities that enable other activities to make a substantial contribution to one or more of the environmental objectives. The activities can be categorised into three different types: > Activities that in and of themselves contribute substantially to one of the six environmental objectives as described in step 2. THRESHOLD CRITERIA FOR SUBSTANTIAL CONTRIBUTION The alignment with the requirements of the Substantial Contribution Criteria, which are specific for each economic activity as defined by the EU Taxonomy Compass, has been confirmed. The contri- bution is categorised into six environmen- tal objectives: (i) climate change mitiga- tion, (ii) climate change adaptation, (iii) sustainable use and protection of water and marine resources, (iv) transition to a circular economy, (v) pollution prevention and control, (vi) protection and restoration of biodiversity and ecosystems. 1. 2. to determine whether that economic activity causes no significant harm to any of the other environmen- tal objectives as defined within the Taxonomy. In addition, the analysis should categorise the activi- ties into transitional and enabling activities as well as identify mitigation measures about potential risks regarding climate change, pollution, biodiversity, among others, to reach the activities’ impact targets by utilising a more sustainable and climate friendly way of operating. All the 15 active investments in the eeef portfolio are taxonomy aligned as of 31 December 2023. The projects of the partner institutions TIPs plat- form (4 taxonomy activities) and Ore Valley Housing Association (2 taxonomy activities) were individually analysed on sub-project level before being grouped into the respective taxonomy activity. For VIPA, the active sub-loan projects were respectively examined as of the end of December 2023. Generally, the Taxonomy alignment analysis is based on a tool known as “EU Taxonomy Compass”, which aims to make the Taxonomy contents easier to access through a visual representation of sectors, activities and criteria included in the Taxonomy. Following this tool and on the basis of the documen- tation provided by eeef, Arcadis has conducted each project examination in five steps: “DO NO SIGNIFICANT HARM” DUE DILIGENCE The alignment with the requirements of all DNSH criteria, which are specific for each eco- nomic activity as defined by the EU Taxonomy Compass has been confirmed. This analysis should confirm that the assets’ targets and way of operating do not cause any significant harm to the other environmental objectives defined by the Taxonomy. MINIMUM SOCIAL SAFEGUARD The alignment with the require- ments of the Minimum Social Safeguards has been confirmed. 5. CALCULATION OF PERCENTAGE ALIGNED The proportion of turnover aligned with the Taxonomy has been calculated. Results: The analysis concluded that out of the 15 invest- ments analysed, all projects are fully aligned with the Taxonomy. More concretely, all analysed projects contribute to the 1st EU environmental objective (climate change mitigation) through an eligible activity while causing no significant harm to any of the other five EU environmental objectives. Most project activities can be classified as either enabling or transitional. Moreover, the projects comply with minimum social safeguards laid down in the Taxonomy and fulfil the Technical Screening Criteria. According to the Taxonomy alignment assessment carried out by Arcadis, the current eeef investment portfolio can be certified as being environmentally sustainable in terms of the Taxonomy. 3. 4.

39 39 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 40 40 EVALUATION WORKFLOW AND RESULTS 15 EEEF-INVESTMENTS GROUPED INTO 8 TAXONOMY ACTIVITIES 1. IDENTIFICATION OF ELIGIBILITY RENOVATION OF EXISTING BUILDINGS > Energetica – building retrofit URBAN AND SUBURBAN TRANSPORT, ROAD PASSENGER TRANSPORT > Dancer Mobility HIGH-EFFICIENCY CO-GENERATION OF HEAT / COOL AND POWER FROM FOSSIL GASEOUS FUELS > University Hospital S. Orsola-Malpighi, Bologna > Energetica – district heating plants INSTALLATION, MAINTENANCE, AND REPAIR OF RENEWABLE ENERGY TECHNOLOGIES > TIPs platform – solar on buildings INSTALLATION, MAINTENANCE, AND REPAIR OF ENERGY EFFICIENCY EQUIPMENT > Jewish Museum Berlin – optimisation of HVAC1 and installation of efficient energy management system > Santander – smart public lighting > Universidad Politécnica de Madrid – heating infrastructure upgrade > OVHA – replacement of gas boilers in residential buildings > City of Venlo – street lighting > TIPs platform – street lighting > TIPs platform – heating infrastructure upgrade > Vila do Conde – smart public lighting > Gijón – smart public lighting > CIMAC – smart public lighting > Illuminated Cities (North) – smart public lighting PRODUCTION OF HEAT / COOL FROM BIOENERGY > Orléans Biomasse Energie – biomass2 > Rennes Biomasse Energie – biomass3 ELECTRICITY GENERATION FROM WIND POWER > OVHA – construction of small-scale onshore wind farms ELECTRICITY GENERATION USING SOLAR PHOTOVOLTAIC TECHNOLOGY > TIPs platform – solar power plants TRANSITION ENABLING ELIGIBLE 2. THRESHOLD CRITERIA FOR SUBSTANTIAL CONTRIBUTION 100 % CLIMATE CHANGE MITIGATION CLIMATE CHANGE ADAPTATION SUSTAINABLE USE AND PROTECTION OF WATER AND MARINE RESOURCES TRANSITION TO A CIRCULAR ECONOMY POLLUTION PREVENTION AND CONTROL PROTECTION AND RESTORATION OF BIODIVERSITY AND ECOSYSTEMS 3. “DO NO SIGNIFICANT HARM” DUE DILIGENCE 100 % 4. MINIMUM SOCIAL SAFEGUARD 100 % 5. SIGNIFICANT HARM NO SIGNIFICANT HARM MINIMUM SOCIAL SAFEGUARD NOT CONFIRMED MINIMUM SOCIAL SAFEGUARD CONFIRMED CALCULATION OF % ALIGNED 100 % AS ALL 15 INVESTMENTS ARE TAXONOMY ALIGNED4 1 Heating, Ventilation and Air Conditioning 2 The use of biomass is subject to the requirements of Article 29 of Directive (EU) 2018/2001 and the greenhouse gas emission savings from the use of biomass in co-generation installations are at least 80 % in relation to the GHG emission saving methodology and fossil fuel comparator set out in Annex VI to Directive (EU) 2018/2001. There is not a clear declaration for the compliance of the biomass to Article 29 of Directive (EU) 2018/2001, but from the positive opinion released by the “PREFECTURE DE LA REGION CENTRE ET DU LOIRET” of 06/07/2009 and the DALKIA Biomass Supply plan summary Arcadis has found data which confirm compliance with Article 29 of Directive (EU) 2018/2001. 3 The use of biomass is subject to the requirements of Article 29 of Directive (EU) 2018/2001 and the greenhouse gas emission savings from the use of biomass are at least 80 % in relation to the GHG emission saving methodology and fossil fuel comparator set out in Annex VI to Directive (EU) 2018/2001. But these requirements are not applied to heat generation installations with a total rated thermal input below 2 MW. 4 Signet Bank and Coop Pank are not included under this workflow, since no investments have been made into sub-loans by the end of 2023.

41 41 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 42 42 EU TAXONOMY ALIGNMENT | EVALUATION OVERVIEW BY PROJECT STUDIED INVESTMENT INVESTMENT DESCRIPTION DESCRIPTION ALIGNED ALIGNED TAXONOMY TAXONOMY ACTIVITY ACTIVITY TYPOLOGY TYPOLOGY MEASURES MEASURES DNSH1 DNSH1 City of Orléans combined heat and power plant on biomass2 production of heat / cool from bioenergy City of Rennes combined heat and power plant on biomass3 production of heat / cool from bioenergy neither on the list of the enabling nor transitional activity for climate change mitigation and adaptation, but consi dered an eligible activity not on the list of the enabling nor transitio- nal activity for climate change mitigation and adaptation, but considered an eligible activity Dalkia won a public tender realised under a French Regulation Commission Tender (“CRE3”) for electrici- ty / heat generation fired by biomass combined heat and power CHP biomass plant achieving significant carbon savings whilst still generating heat aligned with baseline requirements. The project enables a decentralised energy supply for the City of Rennes using an existing district network. The biomass required is locally sourced within a 100 km radius of the plant. OVHA gas boilers upgrade installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitigation gas boiler upgrade of more than 170 homes owned by the local housing association onshore wind farms electricity generation from wind power construction of small-size onshore wind farms in the Fife region neither on the list of the enabling nor transitional activities for climate change mitigation and adapta- tion, but considered an eligible activity 1 DNSH: “Do no significant harm”. See Step 3 of the Taxonomy alignment analysis for more information. 2 The use of biomass is subject to the requirements of Article 29 of Directive (EU) 2018/2001 and the greenhouse gas emission savings from the use of biomass in co-generation installations are at least 80 % in relation to the GHG emission saving methodology and fossil fuel comparator set out in Annex VI to Directive (EU) 2018/2001. There is not a clear declaration for the compliance of the biomass to Article 29 of Directive (EU) 2018/2001, but from the positive opinion released from the “PREFECTURE DE LA REGION CENTRE ET DU LOIRET” of 06/07/2009 and the DALKIA Biomass Supply plan summary Arcadis has found data which confirm compliance with Article 29 of Directive (EU) 2018/2001. 3 The use of biomass is subject to the requirements of Article 29 of Directive (EU) 2018/2001 and the greenhouse gas emission savings from the use of biomass in co-generation installations are at least 80 % in relation to the GHG emission saving methodology and fossil fuel comparator set out in Annex VI to Directive (EU) 2018/2001. Aligned: fully aligned partially aligned not aligned DNSH (do no significant harm): no significant harm significant harm

43 43 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 44 44 EVALUATION OVERVIEW BY PROJECT STUDIED INVESTMENT DESCRIPTION ALIGNED TAXONOMY ACTIVITY TYPOLOGY MEASURES DNSH1 Jewish Museum Berlin S. Orsola- Malpighi Hospitals energy efficiency upgrade of the Jewish Museum Berlin installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitiga- tion replacement of the building management system and lighting management system. installation of the metering system. reconciliation of heating system hydraulics. optimisation of the ventilation system energy efficiency upgrade of the S. Orsola-Malpighi Hospital high-efficiency co-generation of heat/ cool and power from fossil gaseous fuels transitional activity for climate change mitigation upgrade of entire fluids production and distribution system of the hospital trigeneration plant with a district heating and cooling network of 15 km and two new ther- mal plants Illuminated Cities portfolio of street lighting upgrades with smart city features installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitigation upgrade of the public lighting infrastructure to LED tech- nology according to a fully smart city approach. lighting integrates multiple services, including applications such as remote control and management systems, video surveillance, wi-fi and charging stations for electric vehicles City of Venlo street lighting upgrade of the City of Venlo installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitigation The City of Venlo upgrades the existing street lighting network of the city with energy-efficient LED lamps. The existing O&M contract for the street lighting network with a private service company stays in place and in- cludes the upgraded lighting points 1 DNSH: “Do no significant harm”. See Step 3 of the Taxonomy alignment analysis for more information. Aligned: fully aligned partially aligned not aligned DNSH (do no significant harm): no significant harm significant harm

45 45 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 46 46 EVALUATION OVERVIEW BY PROJECT STUDIED INVESTMENT DESCRIPTION ALIGNED TAXONOMY ACTIVITY TYPOLOGY MEASURES DNSH1 Municipality of Santander street lighting PPP for the City of Santander installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitigation conversion of existing streetlights to energy-efficient LEDs (22,300) Universidad Politécnica de Madrid new heating infrastruc- ture for Universidad Politécnica de Madrid installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitigation energy efficiency measures in 32 buildings of the univer- sity. substitution of 63 oil-based boilers with gas-based. installation of 6,800 thermal valves in the heating system and solar panels. Installation of global manage- ment service CIMAC street lighting upgrade in 14 municipalities via inter-municipal entity installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitigation replacement of existing street lights with ca. 56,000 energy-efficient LED lighting points to upgrade, among others UNESCO World Heritage site of Évora Vila do Conde street lighting upgrade in Vila do Conde muni- cipality installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitigation replacement of existing streetlights with ca. 18,972 energy-efficient LED lighting points 1 DNSH: “Do no significant harm”. See Step 3 of the Taxonomy alignment analysis for more information. Aligned: fully aligned partially aligned not aligned DNSH (do no significant harm): no significant harm significant harm

47 47 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 48 48 EVALUATION OVERVIEW BY PROJECT STUDIED INVESTMENT DESCRIPTION ALIGNED TIPs plat- form new heating infra- structure for public buildings TAXONOMY ACTIVITY installation, main- tenance and repair of energy efficiency equipment TYPOLOGY MEASURES DNSH1 enabling activity for climate change mitigation financing “green” investments that generate energy savings, reduce CO2 emissions, and promote renewable energy use in Lithuania street lighting in Kaunas installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitigation financing “green” investments that generate energy savings, reduce CO2 emissions, and promote renewable energy use in Lithuania renewable energy sources (solar on buildings) installation, main- tenance and repair of renewable energy technologies enabling activity for climate change mitigation financing “green” investments that generate energy savings, reduce CO2 emissions, and promote renewable energy use in Lithuania renewable energy sources (solar power plants) electricity generation using solar photovol- taic technology financing “green” investments that generate energy savings, reduce CO2 emissions, and promote renewable energy use in Lithuania neither on the list of the enabling nor transitional activities for climate change mitigation and adapta- tion, but considered an eligible activity 1 DNSH: “Do no significant harm”. See Step 3 of the Taxonomy alignment analysis for more information. Aligned: fully aligned partially aligned not aligned DNSH (do no significant harm): no significant harm significant harm

49 49 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 50 50 EVALUATION OVERVIEW BY PROJECT STUDIED INVESTMENT DESCRIPTION ALIGNED TAXONOMY ACTIVITY TYPOLOGY MEASURES DNSH1 Dancer Mobility sustainable mobility in European cities urban and subur- ban transport, road passenger transport transitional activity for climate change mitigation all-inclusive operational lease services of electric buses manufactured in Lithuania to public authorities Gijón smart energy in Gijón: energy efficiency and smart management installation, main- tenance and repair of energy efficiency equipment enabling activity for climate change mitigation energy audit of public street lighting. energy audit of public buildings. implementation of renewable energy sources projects Energetica building retrofit renovation of existing buildings transitional activity for climate change mitigation the energy efficiency and building retrofiting of several buildings in condominiums in Bardonecchia and Sauze d'Oulx. 1 DNSH: “Do no significant harm”. See Step 3 of the Taxonomy alignment analysis for more information. Aligned: fully aligned partially aligned not aligned DNSH (do no significant harm): no significant harm significant harm

51 51 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 52 52 EVALUATION OVERVIEW BY PROJECT STUDIED INVESTMENT DESCRIPTION ALIGNED district heating plants in Cervinia TAXONOMY ACTIVITY high-efficiency co-ge- neration of heat / cool and power from fossil gaseous fuels TYPOLOGY MEASURES DNSH1 transitional activity for climate change mitigation installation of highly efficient cogeneration unit and heat pumps to power a district heating system in the Municipality of Cervinia. district heating plant in Bardonecchia high-efficiency co- generation of heat/ cool and power from fossil gaseous fuels transitional activity for climate change mitigation installation of highly efficient cogeneration units and heat pumps to power a district heating system in the Municipality of Bardonecchia 1 DNSH: “Do no significant harm”. See Step 3 of the Taxonomy alignment analysis for more information. Two new investments Signet Bank and Coop Pank are not yet included under this table, since there has been no disbursement to sub-loans by the end of 2023. Aligned: fully aligned partially aligned not aligned DNSH (do no significant harm): no significant harm significant harm

53 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 54 SCOPE 1 AND SCOPE 2 CARBON EMISSION OF THE INVESTED PROJECTS IN 2023 Cardenden Heat and Power CIMAC City of Orléans City of Rennes City of Santander City of Venlo Dancer Mobility Gijon Jewish Museum Berlin JV Illuminated Cities Siram Sub-loan projekts of Banca Transilvania Universidad Politécnica de Madrid University Hospital S. Orsola-Malpighi Vila do Conde TIPs platform CARBON EMISSIONS AND SAVINGS MONITORING The Taxonomy generally supports the Sustaina- ble Finance Disclosure Regulation (SFDR) – an EU regulation on the disclosure of information on the sustainability of investment decisions. Among other requirements, the SFDR requires financial advisors and financial market partic- ipants to publish information about negative environmental and social impacts caused by the investments. These negative impacts are known as “Principal Adverse Impacts” (PAIs). In this context, eeef endeavours to provide more transparency and a deeper understanding of the carbon emissions generated by its invest- ments, which is also part of 14 mandatory PAIs. The following is an illustration of the carbon emissions (Scope 1 and Scope 2) per project, with further explanation. Scope 1 carbon emissions are emissions generated from sources that are controlled by the company issuing the underlying assets1. In eeef's case, Scope 1 refers to emissions directly generated from our invested asset. For our projects biomass Cogeneration (Combined Heat and Power – CHP) plants in the City of Orléans and City of Rennes, the scope 1 emissions are from the carbon emissions during the process where the CHP Plant is fueled by recycled wood chips and transform the input fuel into the elec- tricity and heat as output. For eeef’s project of University Hospital S. Orsola Malpighi, the tri- generator (Heat, Power and Cooling) plant also consumes natural gas in the process of different forms of energy production. The carbon emissi- on by the tri-generator attributed to natural gas as a fuel is considered here as scope 1 emissi- ons. As for the project in Universidad Politécni- ca de Madrid, the upgraded boiler is fueled by the natural gas in order to generate heating, the scope 1 carbon emissions in this process are from the natural gas consumption in the boiler. Scope 2 carbon emissions are "purchased" emissions through energy usage (electricity, heat, steam cooling), including purchased energy used for production of goods, namely emissions from the consumption of purchased electricity, steam, or other sources of energy generated upstream from the company that issues the underlying assets. In eeef ‘s case, Scope 2 refers to the emission from the energy (electricity, heat for instance) purchased for and consumed by our invested asset itself. For our streetlights upgrading projects, like City of San- tander and Vila do Conde, the scope 2 emissi- ons are from the emissions from the electricity itself which is purchased from corresponding Spanish and Portuguese national grid. For Je- wish Museum Berlin, the scope 2 emissions are from purchased district heating and the electri- city from the German national grid. eeef deduced the Scope 1 and Scope 2 Carbon emissions of each investment from the respec- tive annual project's energy savings summary and report received. Projects Signet Bank, Energetica and Coop Bank are not included in the chart, as the projects are yet to commence the construction / implementation or deploy the called capital as of end of 2023. There is no available emission data from the underlying projects. We expect to report its carbon emission when the project is finalized and in operation. Scope 3 carbon emissions are all indirect emis- sions that occur in the value chain of the re- porting asset and are not covered under Scope 1 and Scope 2, including both upstream and downstream emissions, in particular for sectors with a high impact on climate change and its mitigation. In eeef’s case, Scope 3 is currently not available. 1 Scope 1,2 and 3 emissions classification here are according to GHG Protocol Corporate Standard (https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Scope 1 (in tons of Co₂e) Scope 2 (in tons of Co₂e)

55 55 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 56 56 BLUEMARK VERIFICATION In 2020, eeef engaged in the annual public dis- closure of its alignment with Operating Princip- les 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 inde- pendent verification. In 2021, eeef’s impact management system was independently veri- fied by BlueMark, a leading provider of impact verification services in the impact investing market. BlueMark was incubated and launched in January 2020 by Tideline, a leading women- owned impact investing consultancy, with a mission to strengthen trust in impact investing and to help bring more accountability to the impact investment process. Going forward, the Fund is committed to bringing its impact ma- nagement process to close to the best practice 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 summari- ses findings using four ratings: advanced, high, moderate and low. This next verification is expected to be performed in 2024. Strategic Intent OPERATING PRINCIPLES FOR IMPACT MANAGEMENT 1. Define strategic impact objective(s), consistent with the investment strategy 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

57 57 EEEF IMPACT MANAGEMENT EEEF IMPACT MANAGEMENT 58 58 CONTRIBUTION TO SUSTAINABLE DEVELOPMENT GOALS The European Energy Efficiency Fund works actively to contribute to the internationally recognised United Nations (UN) goals for sustainable devel- opment, the so-called Sustainable Development Goals (SDGs). The Fund registered its partnership for UN SDGs and mapped its impact against the following SDGs 7, 11, 13 at the beginning of 2020. The sustainable progress of each goal is now measured with eeef defined indicators, which are closely aligned to the SDGs framework. SDG 7 is mapped against the amount of eeef’s renewable energy and energy efficiency projects contributing to doubling the global rate of improve- ment in energy efficiency 14 PROJECTS in Energy Efficiency 2 PROJECTS in Renewable Energy 1 PROJECTS Clean Urban Transport SDG 11 is mapped against the annual number of people impacted through all eeef’s projects 2 MILLION people are reached SDG 13 is mapped against the number of countries and public authorities in which eeef has been engaged via its projects since inception (all eligible due to public link) 10 COUNTRIES 9 Member States and the UK 56 PUBLIC AUTHORITIES POPULATION REACHED THROUGH EEEF INVESTMENT ACTIVITIES eeef investment projects City / region Annual popula- tion reached Notes on population reached Jewish Museum Berlin Berlin 700,000 City of Orléans Orleans 57,120 University Hospital S. Orsola-Malpighi City of Rennes City of Venlo Universidad Politécnica de Madrid Ore Valley Housing Association Bologna 20,000 Rennes Venlo Madrid 85,680 100,536 46,000 Cardenden 6,533 Municipality of Santander Santander 572,044 Illuminated Cities Rozzano 42,557 CIMAC Portugal CIMAC Region 167,000 Dancer Mobility Klaipėda 0 79,533 1,033 Vila do Conde VIPA Gijón Signet Bank Energetica Coop Pank Total Vila do Conde Multiple regions in Lithuania Gijón population Latvia Italy Estonia Average number of visitors per year who have visit the Jewish Museum Berlin since its opening in 2001. 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-aca- demic staff. 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 on the campus of UPM. The total number of residents and tenants who live in the project area (based on the re- ported figures from OVHA). The total population of the city of Santander, including the average number of tourists visiting the city of Santander each year. The total population living in the municipality included the pipeline at the closing date. The total population living in 14 municipalities (census 2011) that are located in the Alente- jo Central Region in Portugal where the upgrade of luminaires would be performed. People reached will be estimated based on the number of the population using public transport. The project seeks to replace 10 diesel buses in Klaipėda. There are no busses used from the project yet. The total population of Vila do Conde as of census 2011. The first project approved by the Investment Platform has reached 474 households. To reach the number of beneficiary people, this number has been multiplied by the average household size of 2.18 persons. 269,311 The total population of the city of Gijón (census 2021) is considered as reached population. N / A N / A N / A 2,147,347 No population reached yet, since the Funds have not been fully disbursed to the projects. No population reached yet, since the Funds have not been fully disbursed to the projects. No population reached yet, since the Funds have not been fully disbursed to the projects. The population reached through eeef investment projects is an annualised figure and is estimated using a prudent approach. Each figure is derived from the estimate considered for each individual project based on the populati- on of the city and / or the region achieved as a result of eeef activities (e.g., calculation number of staff, students, professors, patients, etc.) as reported in the investment committee proposal.

61 THE EEEF’S TECHNICAL ASSISTANCE FACILITY 6262 THE EEEF’S TECHNICAL ASSISTANCE FACILITY AN OVERVIEW > EUR 389,500 approved for the Province of Ferrara > EUR 400,000 approved for the City of Gijón > EUR 340,000 approved for the Italian Ministry of Defence (MoD), Modena > EUR 180,000 approved for Kaunas District Municipality > EUR 195,000 approved for Šilutė District Municipality > EUR 195,000 approved for the Klaipėda University Hospital (KUH) > EUR 199,500 approved for the City of Sestao > EUR 180,000 approved for the Daugavpils > EUR 400,000 approved for the Autonomous City Municipality Province of Bolzano > EUR 160,000 approved for Ukmergė District > EUR 160,000 approved for the University of Oviedo > EUR 160,000 approved for Barcelona Metropolitan Municipality Area (AMB) € million euros envisaged total project investment volume supported by the eeef TAF potential total leverage factor (weighted average) 2 . 9 5 1 2 3 . 3 5 5 3 9 , 5 8 8 6 3 , 7 2 MWh per year estimated primary energy savings tCO2e per year estimated carbon equivalent emission savings The Fund has set up the eeef Technical Assistance Facility (eeef TAF) to catalyse investments in public entities (EU Member States) in the energy efficiency sector, small-scale renewable and / or public urban transport. The TAF directly allocates consultan- cy services to the TA beneficiaries. Some of the services provided are e.g., energy audits, feasibility studies, public procurement assistance, and preparing tendering process to realise investment programmes. From 2017 to date, the eeef approved twelve Tech- nical Assistance (TA) projects, embracing 27 public and municipal authorities across Spain, Italy, Lithu- ania, and Latvia. These TA projects have received and / or are currently receiving consultancy services in various forms with the common aim of realising the investment programmes to improve their CO2 footprint. By 2023, the eeef TA support expects to deliver over €159.2 m worth of commercially viable investments compared to the initial assumption of €179.3 m. The initial number was based on the assumed invest- ment portfolio from the twelve signed TA projects. In comparison, the current envisaged investment volume is the outcome after evaluating the actual situation of three TA projects in Lithuania, which are expected not to materialise. During the project development, the Ukmergė and Šilutė District Muni- cipalities published the tender for their respective investment projects, resulting from the TA services. Due to the price increase (i.e., inflation and the Ukraine war), Ukmergė received two offers over their budget, and Šilutė did not receive any. Although the possibility of re-launching the tender was under eva- luation from the public authorities' perspective, it did not seem economically feasible to proceed with the projects. Furthermore, the Klaipėda University Hospital (KUH) underwent a merger, which caused a delay in the procurement process. A new admini- stration took over, which might not continue with the project as it was initially planned by the former management. 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 providing the technical assistance services; it also aims to of- fer financing with various financial instruments to ensure that the investment 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. By 2023, seven of the eeef TAF programmes have already published tenders to select a company to implement the investment programme (Province of Ferrara, Italian Ministry of Defence, Kaunas, City of Gijón, Šilutė, Autonomous Province of Bolzano and Ukmergė). The Province of Ferrara, Kaunas District Municipality and Italian Ministry of Defence have selected the company to go ahead with the invest- ment programme as outlined in the TA studies, the external financing was not used. The investments for the City of Gijón were completed and financed by eeef. 4 countries involved 7 public and municipal 2 authorities involved

63 THE EEEF’S TECHNICAL ASSISTANCE FACILITY 6464 IMPACT OBJECTIVES (2017–2023) Joining the efforts of the EU 2030 framework for climate and energy and the 2050 climate- neutral objectives, the Fund increased the primary energy savings and greenhouse gas emissions (CO2 equivalents) reduction of all its TA projects from 20 % to a 30 % target. Overall, the cumulative primary energy savings expected from the nine TA projects will save energy to nearly 85,935 MWh (equivalent to 47.3 %) and reduce CO2 emissions to 27,368 tCO2e (50.1 %)1. The following table for the impact objective analysis does not include Ukmergė, Šilutė, and KUH TA projects, as these are expected not to materialise due to external circumstances. The table below shows the objectives as included in requests for the Technical Assistance: TABLE: IMPACT MEASUREMENT TA Projects Country Tender pub- lished, Yes (Y)/Not (N) Sector Building (B)/lighting points (LP), in numbers Annual popula- tion reached Expected energy saved, (%) per year EE (street lighting/ building), RE (PV) EE (street lighting/ building) 42, 960 (LP)/ 85 (B) 271,780 30 26,557 (LP)/ 9 (B) 345,691 ca. 40 # 1 2 3 4 5 6 7 8 9 City of Gijón ES Province of Ferrara MoD – Ducal Palace of Modena Province of Bolzano Kaunas IT IT IT LT City of Sestao ES Daugavpils University of Oviedo LV ES Y Y Y N Y N N N Barcelona Metropolitan Area (AMB) ES N 186,741 533,373 96,441 2,586 (LP)/ 13 (B)/ 27,533 9,000 (LP) 79,120 58 (B) 25,0002 51 58 63 55 60 32 EE (thermal sys- tems & building) 5 (B) EE (building) 62 (B) 8,989 (LP) EE (street lighting) EE (street lighting, building, e-mo- bility)/RE (energy communities using PV) EE (street lighting) EE (building / digi- talization program), RE (energy com- munities using PV/ district heating) EE (street lighting/ building), RE (en- ergy communities using PV / biomass district heating) TOTAL 97,870 (LP)/309 (B) 4,805,016 47,33 50,1 53.32 7,778 (LP)/ 77 (B) 3,239,337 37 48 29,45 1 The Province of Ferrara and the Italian Ministry of Defence have completed their projects preparations and selected the company to proceed with the investment programme as outlined in the TA studies. Currently, eeef is not able to provide actual final data regarding the impact of these two projects, as the implementation phase has not been financed by eeef. Please note the data provided is based on the completed TA project studies. 2 Almost 22,000 students attend the Oviedo, Gijón y Mieres Campus. More than 2,000 teachers and researchers and approximately 1,000 administrative staff comprise the educa- tive institution. 3 Actual data regarding the impacts of the Province of Ferrara and the Italian Ministry of Defence TA projects is not currently available, as the implementation phase has not been financed by eeef. Please note the data provided is based on the completed TA project studies. From 2017 to 2023, the TAF programme has been supporting (i) energy efficiency measures, such as street lighting upgrades (i.e., installa- tion of green technology, the replacement of luminaires and traffic lights, IoT nodes, digital platforms to manage and monitor the energy flow acting as a small smart grid solution, etc.), public buildings renovation and retrofit, (ii) renewable energy solutions, including the development of energy communities using PV programs, building-integrated PV systems, the installation of aerothermal and hydrothermal systems, biomass district heating, etc., and (iii) urban transportation, including e-mobility programmes. According to the energy measures supported along the TAF programmes, results show a total of 97,870 lighting points to be upgraded and 309 buildings to be renovated. Additionally, 41 public buildings / structures are expected to be reserved for the development of energy communities.3 So far, 27 public and municipal authorities will benefit from the TAF programme i.e., (i) the City of Gijón, (ii) the Province of Ferrara, which includes the municipalities of Ferrara and Me- sola, (iii) the Italian Ministry of Defence for the Ducal Palace in Modena, (iv) the Autonomous Province of Bolzano, which includes the muni- cipalities of Bolzano, Brunico, Bressanone, and Merano, (v) the Kaunas District Municipality, (vi) the City of Sestao, (vii) the Daugavpils City Municipality, (viii) the University of Oviedo, and (ix) the Barcelona Metropolitan Area, which includes 15 of its municipalities that seek to increase their energy efficiency levels through the TA programme (Badia del Vallès, Barberà del Vallès, Cervelló, El Papiol, Montcada i Reixac, Montgat, Pallejà, Ripollet, Sant Andreu de la Barca, Sant Climent de Llobregat, Sant Cugat del Vallès, Sant Feliu de Llobregat, Sant Vicenç dels Horts, Tiana and the Torrelles de Llobregat). The population reached through its energy-related activities will be around 4,805.016 inhabitants. comprises the construction phase, which takes up to two years for each project, and continues with the operational phase of ca. 12 years. The- refore, it is expected that the benefits of the TAF programme will continue to be leveraged after two to three years of completing the project preparation. eeef expects to expand its support to more regions. Currently, it is in preliminary discus- sions with further public authorities in Latvia, Romania, Bulgaria and Lithuania for potential projects. Funding Following the successful completion of the first collaborative project with the European Invest- ment Bank ('EIB') under the eeef's Technical Assistance Facility (TAF) programme, eeef signed a new collaboration agreement in 2023 that will allow the Fund to expand the TA Facility and support an even greater number of public authorities within the EU. On October 4th 2023, the Fund and the EIB – European Local Energy Assistance ('ELENA') TA Facility signed a contract ('ELENA Contract' 2020-177) under the Horizon 2020 Programme of the European Union for funding new project development services ('PDS'). ELENA is ex- pected to allocate up to €1.9 m to the eeef TA programme within a timeframe of three years (11/2023 – 10/2026). By October 2023, a first pre-financing of €770,400.00 was disbursed, building the eeef's TA Facility available for new projects to over €770,400.00. Embarking on a new journey, on 26 January 2024 eeef launched a public call for proposals for public authorities within the EU. Due to the high demand and interest from public autho- rities in Latvia, Lithuania, Italy, Romania, and Spain, the deadline was extended to 15 April 2024. Active collaboration with these authori- ties is expected to begin by H1/2024. Generally, it takes up to 3 years for public authority to complete the preparation of the investment programme. After completing the TA programme, each project goes into imple- mentation phase (estimated 10 – 15 years). It By Q4 / 2023, the Fund has approved a new TA project from a public authority in Catalonia, Spain. More information about TA projects are regularly provided also on the eeef’s website – www.eeef.eu. Expected emission avoided, tCO2eq (%) per year Leverage factor, (x) 30 48 51 48 63 55 60 48 57.54 79.07 26.47 100.25 20.55 68.84 43.35 38.57

65 THE EEEF’S TECHNICAL ASSISTANCE FACILITY 6666 NEW EEEF TAF PROGRAMMES THE BARCELONA METROPOLITAN AREA (AMB) JOINS THE EEEF TECHNICAL ASSISTANCE FACILITY TO INCREASE ENERGY EFFICIENCY LEVELS IN 15 OF ITS MUNICIPALITIES FROM THE CATALONIA REGION The AMB is located in the city of Barcelona, Spain, in the autonomous community of Catalonia. It is made up of 36 municipalities, from which 15 (i.e., Badia del Vallès, Barberà del Vallès, Cervelló, El Papiol, Montcada i Reixac, Montgat, Pallejà, Ripollet, Sant Andreu de la Barca, Sant Climent de Llobregat, Sant Cugat del Vallès, Sant Feliu de Llobregat, Sant Vicenç dels Horts, Tiana and the Torrelles de Llobregat) presented themselves as candidates for the TA project. All of them are Members of the Covenant of Mayors and are committed to the EU's climate and energy policy framework. The Barcelona Metropolitan Area (AMB) is the public administration of Barcelona's metropoli- tan area, the largest metropolitan conurbation in the Western Mediterranean, and the source of half of ' 'Catalonia's GDP. It has a population of circa 3,239337 inhabitants and an area of 636 km2. On 19 June 2023, the eeef and the AMB signed a TA Agreement to develop the project "Energy Efficiency and Maintenance Service for Public Buildings and Street Lighting of the Metropoli- tan Area of Barcelona." The objective of this TA is to increase overall energy efficiency levels and create energy communities in the 15 muni- cipalities of the metropolitan area by providing upgrades to 77 public buildings, developing energy communities with solar PV systems, installing 12 new biomass district heating sys- tems, and retrofitting street lighting using LED technology. The project volume for the programme is circa EUR 11.29 m. This will facilitate the AMB rea- ching the required renovation and energy levels to contribute to the local and national targets. Supported services include the preparation of energy audits for 77 public buildings (16 of the- se buildings will be selected for the develop- ment of energy communities and / or PV system installation), energy audits for public street lighting, and completion of technical studies for biomass district heating. Additionally, the evaluation of the economic viability of the in- vestment, structuring of the tender documents to align with the PPP / ESCO model, external advisors, and legal analysis will be included. Recent developments On 14 December 2023, the TA Agreement for Consultancy Services was signed. THE UNIVERSITY OF OVIEDO JOINS THE EEEF TECHNICAL ASSISTANCE FACILITY TO PROMOTE SMART ENERGY IN ITS THREE CAMPUSES (GIJÓN, MIERES AND OVIEDO) The University of Oviedo is a public institution of higher education and research of the Principality of Asturias. It is located in the north of Spain, bordering the Cantabrian Sea from the North and Castilla y Leon from the South. It extends its campuses through the cities of Oviedo, Gijón, and Mieres (in addition to offering different university services in Avilés), with nearly 22.000 students, more than 2.000 professors and researchers, and almost 1.000 people in staff of administration and services. With more than 400 years of history, the Uni- versity of Oviedo offers degrees adapted to the European Higher Education Area (EHEA) in all branches of knowledge, bilingual itineraries, double degrees with international universities, and postgraduate programs in collaboration with more than 250 companies. On 2 June 2023, the eeef and the University of Oviedo signed a TA Agreement to develop the project "Smart Energy at the University of Oviedo: Energy Efficiency and Smart Manage- ment." The university seeks to increase energy efficiency levels in public buildings located on its three campuses (Gijón, Mieres, and Oviedo) by renovating 58 public buildings, which inclu- des several measures, i.e., the envelope and insulation improvements in 14 old buildings, installation of remote management systems and renovation of buildings lighting systems, etc., developing energy communities with solar PV systems and / or installing PV panels in 37 buildings, developing a district heating network in 3 zones located in Oviedo and Gijón Cam- puses, and a digital platform for monitoring electric and thermal consumptions. The project volume for the programme is circa EUR 19.8 m. This will enable the University of Oviedo to significantly contribute to achieving the various ambitious carbon reduction goals that it has set for itself. Recent developments On 19 December 2023, the eeef and TA Consul- tant signed the TA Agreement for Consultancy Services. The TA works are expected to start in January 2024.

69 70 70 AI UPRAISE – ANOTHER CHALLENGE ON THE WAY TO ENERGY TRANSITION? by Didzis Berzins A wide range of industries are adapting artificial intelligence (AI) solutions attempting to improve productivity. Increase of demand for IT load ca- pacity and graphic processing units (GPUs) and rapid rise of electricity consumption associated to the data centres is evident. According to the Citi Research global data centre IT load demand in 2024 is expected to grow by 25% compa- red to 2023 reaching 41.1 GW and by 2030 will reach 100.3 GW representing compound annual growth rate (CAGAR) of 20% for the forecasting period. Fortune Business Insights reported that the global GPU market in 2024 will grow by 27% compared to 2023 reaching EUR 56 million and by 2032 will reach more than EUR 400 billion, exhibiting CAGR of 29%. AI may be critical and part of the solution to ma- nage rapidly increasing decentralised renewable energy sources and eventually reach net zero emission world. Major electric power companies have reported that AI is already used for: 1 adjusting operations of renewable energy plants in real-time based on weather conditions and market demand, 2 managing Virtual Power Plants, which aggregate distributed energy resour- ces and optimise operations as a single, flexible energy source, 3 managing operation of energy 4 wind turbine and solar park perfor- storage systems, ensuring efficient energy use and grid stability, mance optimisation and predictive maintenance, reducing downtime and maintenance costs, 5 smart meter data analysis to optimise energy distribution, tailor services and improve energy efficiency. National Grid (UK) uses AI to predict electricity supply and demand more accurately assisting in grid balancing. AI algorithms are employed to monitor gird stability and predict potential disruptions, allowing for proactive measures to maintain reliable electricity supply. Other application of AI in electric power industry includes dynamic pricing, optimising and ba- lancing renewable and non-renewable sources reducing carbon emissions, and grid frequency and load management. AI solutions will also play important role in improving productivity in other industries. However, AI technologies not only bring bene- fits, but also create additional challenges to the energy sector and in particular electric power industry. Data centres that service training and operating AI models consume more and more electricity. Vast majority of energy is used for computing power and cooling. According to IEA, OpenAI’s ChatGPT uses 2.9 Wh per request which is almost 10 times more than a typical Google search, and with 9 billion searches daily, this requires almost 10 TWh of electricity per annum. Global electricity demand from data centres in 2022 was estimated to be 460 TWh. IEA expects that the demand could double by 2026 reaching to up to 1 050 TWh, which is roughly equal to cur- rent electricity demand of Germany and France combined. IEA estimates that by 2026 in EU data centre electricity consumption will reach over 150 TWh per annum (up from about 100 TWh in 2022) or nearly 5.5% of the total consumption. Ireland and Denmark, where data centre market is developing rapidly, associated electricity con- sumption in 2026 will reach 32% and 20% of the total country’s demand respectively. Rise of hyperscale data centres will also exert additional pressure on power grids and in some countries this may be extreme. To accommodate all electric power demand needs in Europe, Gold- man Sachs estimate that nearly EUR 800 billion will be required for modernising transmission and distribution networks. Europe and the world need to prepare for data centre electric power demand and take it into consideration, when forecasting required renewable power production capacity to reach previously set transition targets. EC has already added a section on data centres in the recast Energy Efficiency Directive and adopted a new delegated regulation on the first phase for establishing EU-wide scheme to rate the su- stainability of EU data centres. According to the delegated act the aim of the rating scheme is to allow for comparisons between data centres and promote new designs or appropriate efficiency interventions in new or existing data centres that can result not only in a considerable reduction of energy and water consumption, but also in the promotion of the use of renewable energy, an increase in the efficiency of the grid, or in the reuse of waste heat in nearby facilities and heat networks. Management of decentralised renewable energy facilities, grid balancing and automation of sophisticated processes require complex algo- rithms, application of AI and immense com- puting power and thus require a lot of electric power. To continue and accelerate energy tran- sition, additional power, that was not previously accounted in projections even few years ago, needs to come from renewable sources. Uprise of AI is an example and proof that human energy consumption habits are constantly changing, this implies that reliance on fossil fuels might be longer than anticipated and that primary energy savings focus should be stronger, as transition to renewables is not keeping pace. In future there may be other rising intense energy consu- ming sectors that we may now not be aware off. Energy efficiency measures and scope should therefore also change and adopt considering new circumstances. AI may help to deploy more sophisticated energy efficiency solutions, but we must make sure that the benefits outweigh the indirect harm to the environment. v

71 72 72 EVOLUTION OF THE ENERGY EFFICIENCY LANDSCAPE IN EUROPE SINCE RUSSIA’S INVASION OF UKRAINE by Rahul Pratap Singh The unexpected invasion of Ukraine by Russia triggered profound implication to Europe’s energy landscape which for decades had relied heavily on energy from Russia, in particular on natural gas. This geopolitical shift forced political leaders across Europe to rethink their energy strategies, emphasizing energy security and accelerating the push towards energy efficiency and renewable energy sources. Two and a half years from the onslaught, allow me to reflect on a few trends impacting the energy sector. Buildings, for example, account for approxima- tely 40% of Europe’s energy consumption and 36% of CO2 emissions. Since 2022, the focus on energy efficiency in buildings has renewed. Significant funds have been allocated from the “Recovery and Resilience Facility” that catalyzed a surge in both public and private investments directed toward building renovations. Countries such as Spain and Poland introduced incentives for households to adopt energy-saving measures - installing better insulation, energy efficient windows, heat pumps, among others. Likewise, Italy launched the "Superbonus 110%" scheme that was followed by “Ecobonus” scheme to offer tax incentives for energy-efficient renovations thereby increasing local appetite for building upgrade projects. As Europe intends to renovate 35 million buildings by 2030, the ongoing “Reno- vation Wave” is likely to continue into the near future and will significantly lower their carbon footprint. Another significant trend is rising investments in renewable energy - solar, wind, hydro and biomass - to reduce reliance on fossil fuels such as natural gas and oil. Germany, which traditio- nally relied heavily on Russian gas, saw itself in a highly vulnerable state and had to expedite the shift towards cleaner solutions such as wind and solar energy. Another example would be France, which conventionally relied on nuclear energy, has lately increased deployment of renewable energy sources. By 2030, it aims to produce 14-22TWh of biomethane annually, which would account for about 7-10% of the national gas consumption. Europe is projected to produce 45% of total energy from renewable sources by 2030 under the “RePowerEU “plan. This plan is a reinforcement of Europe’s commitment to the European Green Deal and aims for climate neutrality of Europe by 2050. Based on electricity demand in 2020; projected demand growth; and assuming a suitable policy framework to support deployment of renewable energy, approximately 2,080 TWh of new installed renewable energy capacity will need to be added by 2030. To manage the intermittency of renewable energy sources, smart grid technologies and energy storage solutions will observe increased investments and deployments across Europe. Smart grids allow for more efficient distributi- on & consumption of electricity and optimize flow of energy across networks. They are crucial for balancing supply & demand, especially as renewable sources get integrated into the energy mix. Likewise, energy storage solutions and technologies, particularly battery storage, help store excess renewable energy generated during periods of low demand and release it when nee- ded thereby enhancing grid stability, reliability and provide a buffer against sudden supply dis- ruptions. A large-scale implementation of battery storage project in Ireland with 100MWh capacity at Moneypoint is a good case in point. This pro- ject aims to enhance resilience of Ireland‘s grid power and integrates higher levels of renewable energy capacity. On the other end of the spec- trum, Germany’s 15MWh capacity project in Wittenberg is a smaller scale implementation of battery storage solution to support local SMEs in balancing energy needs with renewable genera- tion and in delivering grid stabilization. In the last years, many European countries, espe- cially Germany, witnessed an abrupt shortage in natural gas supplies and increased energy prices, that triggered a noticeable shift toward electrification of heating systems. Heat pumps which are generally more energy efficient than traditional gas boilers have emerged as a popu- lar alternative. Unlike Sweden, where electric- powered heat pumps are dominantly present for space heating since many decades, some of the other member countries in Europe had to fast track heat-pump adoption. For example, the “MaPrimeRenov” initiative of the French Government, offers subsidies to promote energy efficiency in residential buildings. The outcome is a significant surge in heat pump installations across urban and rural areas in France. Likewise, cities of Lyon and Marseille focused on projects to retrofit public buildings namely, schools, hospitals and government offices, and bene- fitted with substantial improvements in energy efficiency due to heat pump installations. Europe has set itself a target to install 10 million heat pumps over the next five years as part of its broa- der energy strategy. It shouldn’t be surprising in the near future that heat pumps are a frequent item in the capital budgets for energy efficiency projects. The drive for energy efficiency also includes the transportation sector. Most European countries have accelerated the rollout of EV charging infrastructure and incentivized its adoption. On similar lines, the public transportation networks are being electrified and expanded. Countries such as Spain and France are investing heavily in high-speed rail and urban transit systems to reduce reliance on private cars that drive on fossil fuels. Likewise, France’s "Bonus-Malus" system provides financial incentives for purcha-

73 MARKET OUTLOOK AND MOVING FORWARD 7474 sing low-emission vehicles while imposing penal- ties on those with high-emission. This ties well with its “Advenir” program that provides EV charging infrastructure. Furthermore, the “National Platform for the Future of Mobility” supports Germany’s com- mitment to reducing transport emissions by 40% by 2030. The platform takes a holistic approach to the transformation of the transport sector by considering not only electric vehicle, but also al- ternative fuels, digital infrastructure, smart mobility solutions and integration with renewable energy. Owing to the lower emissions imperative, the Europe’s “Fit for 55” package includes measures to promote sustainable mobility and aims to reduce net GHG emissions by at least 55% by 2030. The push for electric vehicles, the expansion of public transportation networks and implementing stricter emissions will stay strong into the coming years. In the meantime, Europe’s political think tanks are strengthening the regulatory framework around energy efficiency and correspondingly, revising the Energy Efficiency Directive and the Energy Perfor- mance of Buildings Directive for ensuring stringent energy efficiency standards. These standards and regulations are designed to ensure that Europe meets its energy and climate goals while enhan- cing energy security and reducing demand. Hand in hand, there is a strong push towards adjusting behavioral patterns which are a critical component of reducing energy consumption. Several Europe- an governments have launched public awareness campaigns to promote energy-saving habits. These campaigns encourage citizens to reduce their en- ergy usage by adopting simple measures, such as lowering heating temperatures, using energy-effici- ent appliances, and reducing unnecessary lighting. In some countries, such as the Netherlands, there have been governmental initiatives to encourage energy-saving practices in both homes and busi- nesses. These efforts have been complemented by subsidies and tax incentives for consumers who in- vest in energy-efficient appliances and retrofitting. We all know that the energy crisis precipitated by Russia’s invasion of Ukraine has still not ended. It has very much served as a wakeup call to whole of Europe to become energy resilient and dovetails with the need to transition toward climate neutrali- ty. The combination of policy initiatives, technolo- gical advancements, and behavioral changes has set Europe on a path toward greater energy security and sustainability. This shift will continue to require substantial investment and dedicated efforts from all stakeholders. In essence, the trends so far is positive and signals a commitment across the con- tinent to reduce energy dependency, cut emissions, and build a more resilient energy system in order to have a long lasting impact.

75 IMPRINT 7676 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 Inc. / Roschetzky Photography Disclaimer The European Energy Efficiency Fund SA, SICAV- SIF, a “société d’investissement à capital variable” incorporated under the laws of the Grand Duchy of Luxembourg, with its registered office at 31 Z.A.Bourmicht; L8070 Bertrange Luxembourg, and registered with the Registre du Commerce et des Sociétés, 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 Luxembourg law of 13 February 2007 on specialised investment 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 invest- ment fund manager in accordance with article 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 quali- fies 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 in this report constitutes neither an offer nor a product recommendation; it is provided for individual information purposes only. No gu- arantee is given or intended as to the complete- ness, timeliness or accuracy of the information provided herein. This report is neither an issue document, as specified by applicable law, nor the financial annual report of the Fund, nor the management report. The current issue document 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 offering 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 them- selves of and observe all applicable laws and regulations of relevant jurisdictions. Distribution of the document by an unauthorised person is prohibited and shall be solely at their own risk. Investors should inform themselves and should take appropriate advice as to possible tax conse- quences, 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 applicable 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 appli- cable securities 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 dis- tribution, 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 transla- tion, reproduction, communication, copying of images and tables, broadcasting, microfilming or reproduction 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.