2.3.4. Greening the contracting and monitoring of investments

2.3.4. Greening the contracting and monitoring of investments

Contracting and monitoring are under the responsibility of the lead financial institution. Nevertheless, the Commission and EU Delegations must ensure that the greening opportunities and environmental risk mitigation and management measures are effectively implemented and monitored.

✅ Ensure that the guarantee and blending agreements address key environmental and climate change concerns. The environmental standards and safeguards applicable to the project should be stipulated. 

The guarantee and blending agreements with the different lead FIs should include a clause to ensure environmental objectives will be implemented by the different financial partners along the investment chain.

The use of green procurement should be promoted, in which case the applicable green procurement procedures and criteria should be referred to in the guarantee/blending agreement.

✅ Ensure adequate environment and climate impact mitigation and risk management measures. Make sure that recommendations from the EIA and/or CRA are integrated in the project design, and that the Environmental Management Plan (EMP) (or Environmental and Social Management Plan – ESMP) are reflected in the project’s monitoring framework.

Guarantee and blending agreements should indicate the key findings of any EIA or CRA that were prepared, and the environmental and climate risk management measures that must be implemented. These may be specified in a separate document annexed to the agreement (e.g. the Environmental and Social Data Sheet in the case of EIB).

✅ Monitoring. Depending on the environmental and climate risks of the project, the Commission/EU Delegation may decide to follow-up more closely on the implementation of the project and its EMP. This can take place by accompanying monitoring missions organised by the Lead FI or a ROM (for blending). In any case, it is recommended that delegations check the monitoring reports prepared by the LFI.

If financial intermediaries are involved, it is recommended that technical assistance is provided by the lead FI to enhance their environmental and social systems and standards. It would be in the interest of the Commission to be kept informed of its implementation by the LFI.