eeef Annual Report 2020

Contents Introduction Letter from the Chairman Letter from the Investment Manager The eeef in 2020 4 4 6 8 COVID-19 impact on energy and carbon consumption and savings of eeef’s investments Sustainable investing and innovation for healthier cities From the European Green Deal to the European Climate Law 14 10 12 Wattosun Vila do Conde Banca Transilvania Dancer Mobility Universidad Politécnica de Madrid Municipality of Santander Ore Valley Housing Association Bolloré SPL – Région Rhône-Alpes 2020 Activities Report: Funding The European Energy Efficiency Fund at a Glance 16 Funding situation The mission The eeef’s objectives The Fund’s set-up The eeef’s business proposal Investment structure Development of the eeef since inception 2020 Activities Report: Investments The eeef’s investments City of Orléans City of Rennes Jewish Museum Berlin Foundation University of Applied Sciences Munich Illuminated Cities Smart H&U University Hospital S. Orsola-Malpighi City of Venlo CIMAC 18 20 20 21 22 23 26 28 30 31 32 32 33 33 34 35 36 Technical Assistance Support The eeef’s Technical Assistance Facility Carbon, Environment & Impact Management Project assessment and monitoring Social and environmental management system (SEMS) Primary energy and greenhouse gas emissions savings 2020 Financial Statements Balance sheet Income statement Statement of changes in net assets Cash flow statement Imprint 36 37 38 39 40 40 41 42 43 44 46 48 50 62 64 65 66 68 70 71 72 74 75 Contents 3

Letter from the Chairman Dear Reader, During 2020 the governing bodies of the eeef and its shareholders completed the necessary steps to open up a second phase in the eeef’s history. At a time when Europe looks for the best synergies between the private and the public sector for its recovery, the eeef structure has been modified to fully empower a public- private partnership at the fund level. Private investors from all across Europe can now join the mission to advance sustainable energy for Europe, benefitting of the risk- layered capital structure of the eeef and of the notable first-loss protection provided by the EU budget. In line with the objectives of the European Green Deal and Next Generation EU, the ultimate goal is indeed to leverage substantial private and public funds in support not only of climate action, but also of a long-lasting and sustainable recovery from the COVID-19 pandemic. The organizational and legal changes deriving from such a strategic decision were submitted to the Commission de Surveillance du Secteur Financier in Luxembourg and entered into force on 11 January 2021. The eeef has been additionally designated one of the pioneer investment funds SFDR article 9, serving as a catalyst for investors who want to make their capital enable a real positive change in the European cities, which the fund put at the centre of its activity since its inception back in 2011. 2020 marked an important milestone in this growth path with the entrance of the Deutsche Bundes stiftung Umwelt (DBU), as the first private investor to join eeef alongside the European Commission, European Investment Bank, Cassa Depositi e Prestiti and DWS, asset management arm of Deutsche Bank. DBU is the German Federal Environmental Foundation and has been established in 1990 as a foundation under private law, based on an act of the German Bundestag. It is an independent entity, politically neutral and aims to work outside the scope of other governmental funding programs to complement them, primari- ly to promote innovative and exemplary projects for the protection of the environment. DBU, which will remain invested over a ten years period, is regarded as the largest environmental foundation in Europe and its funding themes are linked to the Sustainable Development Goals adopted by the United Nations. In line with such goals and the fund’s mission, the eeef is giving its own contribution to imprint an acceleration, among others, of the electric mobility market for local transportation. In 2020, the Fund and the e-bus manufacturer Dancer set up in Lithuania the “Dancer Mobility” venture, to provide leas- ing services of electric buses with sustainability as the pole star. Designed and produced in Lithuania 4 eeef Annual Report 2020

for passenger transport in the EU, the vehicles are extremely light, made of composite materials partly derived from PET plastic bottles and combine an ultra-fast charging system to the sole use of renew- able energy. The city of Klaipeda is already renovating its fleet with this last generation vehicles and the company is working to further expand its outreach in Lithuania and Europe. At the other end of the eeef investment spectrum, the fund is financing through a forfaiting facility the re- novation of the street lighting infrastructure in the municipality of Vila do Conde, 74 thousands inhabitants in Portugal. The initiative will upgrade and manage 18,972 street luminaries, realizing annually at least 66.4 % in primary energy and CO2e savings compared to baseline. In addition the project, over a 12-year period of concession, will also generate some EUR 3.2 million of monetary benefits for the municipality. On the eeef Technical Assistance (TA) side, two new applications were successfully awarded and an existing one reached fruition. So far, eight TA public beneficiaries were selected across Spain, Italy and Lithuania. Thanks to the eeef, in 2020 the two Lithuanian administrations of Ukmergé District Munici pality and Šilutė District Municipality kicked off ambitious programmes for the energy renova- tion of groups of public buildings, while the Municipality of Ferrara in Italy was able to successfully complete the process to select an Energy Service Company and upgrade the entire public lighting in- frastructure, composed of circa 27 thousands lighting points. The eeef Technical Assistance and financing activities, combined with the distinctive expertise of the fund, provide the market players with a unique one-stop-shop to advance energy efficiency, clean mo- bility and renewable energy solutions in Europe. On behalf of the Board of Directors and of the European Commission we welcome the community of investors who will join the action to deliver through eeef green and smart cities more and more across Europe. Giorgio Chiarion Casoni Chairman of the Board of Directors Director, InvestEU and financial institutions, European Commission Introduction 5

Letter from the Investment Manager Dear Reader, In 2020, the outbreak of COVID-19 around the world pushed the global economy into a deep recession. To halt the spread of coronavirus, countries across the globe curbed public life with social distancing restrictions hence physical business stop- ping. The lockdown measures implied a slowdown of many business activities. The lives of many people changed in critical ways and the consequences of the pan- demic have already left long-lasting effects. The epidemic has also overshadowed the long-term climate change issue as the world remained focused on winning the battle against the COVID-19. As for the eeef portfolio, the pandemic did not severe- ly affect the Fund’s activity in 2020. Still part of eeef’s Technical Assistance Facility projects encountered challenges which caused minor delays in some work. Never- theless, eeef in line with the objectives of the European Union, continued to lever- age private and public funds to support climate action as its primary objective. The Fund’s activities in 2020 showed, how the current portfolio has contributed to the global goal of CO2 r eduction. Since inception the Fund’s investments have achieved total cumulative savings of 557,363 t CO2e and 850,584 MWh of primary energy compared to the baseline. In 2020, eeef’s renewable energy investments generated 99,389 MWh of energy. A highlight of 2020 was closing of a EUR 5.1 million transaction that replicates the forfeiting mechanism applied in Spain and Portugal to upgrade the public street lighting infrastructure for the municipality of Vila do Conde in Portugal. The project has illustrated a successful example of this financing structure. The project’s upgrade is expected to realize 66.4 % in primary energy and CO2 savings annually com- pared to baseline, representing 11,678 MWh and 4,215 t CO2e, respectively. In addition, the project will also generate approx. EUR 3.2 million of monetary benefits for the municipality over 12 years of the concession. Further detail on successful replication of eeef’s forfeiting facility is available on page 37. eeef Technical Assistance (TA) Facility continued to evolve its strong presence in Eastern Europe by signing two new TA agreements with beneficiaries in Lithuania, with Šilutė District Municipality and the Klaipeda University Hospital to enhance energy efficiency in public buildings. The objective of this TA project is to prepare and implement an ambitious investment program to improve public buildings’ energy efficiency and ensure that they meet the national energy performance requirements. Addition- ally, eeef TAF moved one step further in the Ducal Palace project, with the TA works being completed and a call for proposal for eligible bidders finalised. A winner ESCO will be announced during the first half of 2021. The eeef continued collaborating with the Ministry of Defense to develop the project and to allow the Modena Ducal Palace to protect its history as well as the environment, to let young gen- erations who make use of it and the whole community experience such a valuable asset at its best. During 2020, eeef was also focused on preparing transition process to a fully Alternative Investment Fund Managers Directive (AIFMD) compliant structure that should allow the Fund to incorporate private investors across the Member States. The process was approved by CSSF and envisaged for completion on closing date January 11th, 2021. 2020 marked an important milestone in the Fund’s growth path with the entrance of the Deutsche Bundesstiftung Umwelt (DBU), as the first private investor to join eeef alongside the European Commission, European Investment Bank, Cassa Depositi e Prestiti and DWS, asset management arm of Deutsche Bank to advance sustainable energy for Europe. DBU is the German Federal Environmental 6 eeef Annual Report 2020

Foundation and has been established in 1990 as a foundation under private law, based on an act of the German Bundestag. It is an independent entity, politically neutral, and aims to work outside the scope of other government funding programs to complement them, primarily to promote innovative transportation. This partnership with DBU is an important milestone in eeef’s development, as it en- ables further growth of the Fund and facilitates the additional flow of private capital investments into climate financing, thereby achieving economic sustainability of cities and regions in the EU Member States. Both DBU and eeef, with their commitment, took this challenge and opportunity in supporting The European Green Deal objectives, the ambitious package of initiatives released by the European Commission to make Europe climate neutral by 2050. In July 2020, eeef has been awarded a quality label from LuxFLAG “Environment Label”. LuxFLAG is an independent and international non-profit association created to support sustainable finance and to promote sustainable investments in the financial industry. The label provides the Fund with bench- marking possibilities with recognised peers, assuring investors that investment activities of eeef op- erate in a responsible manner. With the “Environment Label” eeef hopes to attract an additional flow of private capital investments into climate financing, thereby achieving the economic sustainability of cities and regions in the EU Member States. According to the UN’s Intergovernmental Panel on Climate Change (IPCC) an investment from USD 1.6 trillion to USD 3.8 trillion is needed annually in the energy system to limit temperature rise to below 1.5 °C from pre-industrial levels1. While governments are working on climate policy to fulfil this gap, a considerable amount of private capital is needed to cover the shortage in investment required for the transition towards a low-carbon economy. eeef is working on building a strong project pipeline with large market players in the sector as the Fund aims to attract more private investors to continue in- vesting in energy efficiency sector. The Fund continues to seek opportunities to support European municipalities to fulfill ambitions of sus- tainability agendas. eeef stands ready to support the Renovation Wave and Rebuilding Europe strate- gies, particularly in helping deliver TA support and financing for more public sector entities, helping to create jobs and cut emissions. The Fund’s activities in the years that will follow will aim in strengthening partnerships with new cities, regions, hospitals, and universities in launching sustainable energy projects. Deutsche Bank AG, Sustainable Investment Lada Strelnikova Paola Rusconi Rahul Pratap Singh Zarpana Signor Iris Xi Thuy Tien Nguyen-Olbrich 1 IPCC, Chapter 4, Strengthening and Implementing the Global Response https://www.ipcc.ch/site/assets/uploads/ sites/2/2019/02/SR15_Chapter4_Low_Res.pdf Introduction 7

COVID-19 impact on energy and carbon consumption and savings of eeef’s investments The multiple restrictions and lockdown measures in the EU in 2020 have resulted in a drop of 10 % CO2 emissions relative to 2019. At the same time, the electricity demand also slumped1. According to International Energy Agency (IEA), in early 2020 the impact of the COVID-19 pandemic and the re- lated lockdown measures brought about a quick drop in electricity demand to Sunday level across Europe. The demand recovered in a steady way as the lockdown measures were gradually eased. However, in June and July, after being corrected by weather effect, the electricity demand level was still around 10 % – 15 % lower than the 2019 lev- el for the same months. At the end of 2020, the electricity demand recovered above 2019 levels after weather adjustment.2 As for eeef, the majority of the Fund’s projects ex- perienced no COVID disruption in terms of their service and usage. The invested projects remained in general operational in 2020 independent of the governmental lockdown measures. The street lighting projects for various municipalities (e. g. City of Venlo, Municipality of Santander, CIMAC, Smart H&U, Illuminated Cities) were in normal operation throughout the year. The City of Orleans and the City of Rennes biomass CHP projects also witnessed little operational abnormality, as they generated heat and electricity for the household in the surroundings and sell a certain amount of electricity to French national grid. Ore Valley Hous- ing Association project remained also unaffected as it generated heating and electricity for the resi- dential social buildings while selling a proportion of the electricity to the UK national grid. That be- ing said, the energy consumption and eventually the amount of primary energy and carbon savings were intact of the pandemic for the investments mentioned above. As educational and cultural facilities had to be kept closed as prescribed by the local authorities for various periods in 2020, investments in those facilities experienced extraordinary closure and out of service to different degrees. At the end of 2020, eeef has four investments in educational and cultural areas. Two of them, Jewish Museum in Berlin and University Hospital S. Orsola-Malpighi, did not face closure or reduced operation due to the lock- down measures. Jewish Museum in Berlin remained primarily closed to the public in both 2019 and 2020 for ongoing construction work. The Museum witnessed hardly any energy demand change co- rrected for weather factors between 2019 and 2020. For University Hospital S. Orsola-Malpighi, although some teaching activities in the facility were con- strained to a certain extent, it was no less occupied in 2020 as it was in 2019. In fact, the operation 10 eeef Annual Report 2020

activities in the Hospital even increased because of COVID patients’ intake in Northern Italy and the COVID related research activities have overweighed the slight drop in facility usage for teaching. The Hospital’s 2020 energy consumption is overall in line with that in 2019 and the previous years. Two other projects, Munich University of Applied Sciences and Universidad Politécnica de Madrid, also experienced closure and / or reduced oper- ation in 2020. However, in these cases the en- ergy consumption dropped to nearly zero when both facilities were completely closed during the hard lockdown in Germany and Spain. Universidad Politécnica de Madrid was shut down in the second half of March and completely closed in April 2020. So, the eeef funded boilers in all 32-university buildings which normally provided the heating to those buildings, were not in use. Its annual energy consumption is about 20 % less than in 2019. For Munich University of Applied Sciences, its campus operated under reduced capacity from April 2020 to December 2020. The University has about 9 % lower energy consumption and carbon emission in 2020 compared with the previous year. To sum up, the annual energy consumption and the related carbon emission were lower in 2020 than in 2019 for both projects above. International performance measurement and ver- ification protocol (IPMVP) framework defines sav- ings are the absence of energy uses, determined by comparing consumption or demand before and after implementation of a project, after adjusting the baseline and reporting period to the same set of conditions. The adjustment to the same set of conditions enables an apple-to-apple comparison. For the two universities in Munich and Madrid, af- ter adjusting the baseline operating hours before the relevant project implementation to the level of 2020 (i. e. reduced occupancy with reduced oper- ating hours of the facilities), the adjusted 2020 energy / carbon savings amount for both projects are lower than the adjusted savings in 2019. On the flip side, without the adjustment of baseline and reporting period to the same set of conditions, differences between the unadjusted baseline value before project implementation and the reported energy and carbon consumed after project im- plementation are larger in 2020 than in 2019. In a nutshell, the primary energy and carbon savings amount for the two projects is greater in 2020 than in 2019 without adjusting the baseline conditions comparable to the 2020’s. After the baseline ad- justment according to IPMVP, the adjusted savings amount for carbon emissions and primary energy in 2020 is smaller than it was in the previous year. 1 https://www.iea.org/articles/global-energy-review-co2-emissions-in-2020 2 https://www.iea.org/reports/covid-19-impact-on-electricity The eeef in 2020 11

Sustainable investing and innovation for healthier cities By Lada Strelnikova and Paola Rusconi By Lada Strelnikova and Paola Rusconi Investment Managers, the European Energy Efficiency Fund managed by Deutsche Bank AG Investment Managers, the European Energy Efficiency Fund managed by Deutsche Bank AG COVID-19 has swept through over 180 countries like a hurricane and occupied the minds of the world’s population and governments, forcing decision mak- ers to respond to the immediate impacts. There is no doubt that the crisis is about to change various aspects of our lives and the way we do business. This crisis has proven to be global, emphasizing how interrelated the world has become. This crisis has also proven to be destructive, with people los- ing jobs and livelihoods being destroyed. Although climate change is not an epidemic, it also has wide-reaching negative effects, unfortu- nately even more of a long lasting nature. Former UN Secretary General Kofi Annan referred to cli- mate change and diseases as “problems without passports” that cannot be stopped at the border, while Georg Kell in his recent Forbes article1 has well highlighted how much climate change is al- ready under way, building up its destructive poten- tial around the globe. COVID-19 is demonstrating similar patterns to climate change thus and the human activities that are in lockdown now are at risk in the long run. The scientific community agrees that the more peo- ple breathe polluted air, the more they are prone to respiratory infections. Additionally, literature focusing on SARS and COVID-192 correlates air pollution to the speed of spread of the epidem- ic, as pollution acts as virus carrier, as well as the severity of the disease. According to Harvard re- search3, a minor increase in pollution, even just by +1 micro gram of PM2.5, increases COVID-19 mortality by 15 %. Research4 also shows that al- most 80 % of deaths across four countries – Italy, Spain, France and Germany – were in some of the most polluted regions in Europe. Until COVID-19, the western world seemed to con- sider climate change as something that so far af- fected only faraway places such as the North Pole or Amazonia. Appeals about the future of the next generations or “2050 scenarios” have not been deeply effective in mobilising decision makers and for many people that are just trying to get through their day, not only in emerging markets, “carbon emissions” is a vague term that has no relevance to their day-to-day existence. The widespread business shutdown due to COVID-19 has resulted in clear skies in cities all around the world. But why do we need a major health crisis to clean the air in our cities? Should not governments be strongly pushing alternative mobility concepts that can directly improve public health once the lockdowns are lifted? This crisis is showing instead how sensitive the world becomes to the public health, when the risk is tangible. Can the risk from carbon emissions be- come more tangible, when we recognize that air pollution increases the number of deaths, inside and outside the epidemic frame? The lockdowns are clearly reducing the CO2 and NO2 emissions in

the short term, however these short term improve- ments should not imply that decisions on clear air zones in our cities can be postponed until 2021. We should keep in mind that the COVID-19 crisis is going to come in waves and that after SARS and COVID-19 the history could repeat. It is obvious that an exposure to dirty air and its dispersion could be reduced with the cleaner vehicles, alternative “Ville Du Quart D’Heure” concepts5 and zero- emissions zones. These measures are long term in nature and have the dual effect of reducing pollution and improving public health outcomes. COVID-19 has imposed an unprecedented halt of business activities that are related to movement of people and goods. From the recent market busi- ness reactions, two directions can be observed: adaptation to the post COVID world and “keep going as before”. Nine multinational companies responded to attempts by some auto industry lob- byists to seek delays to the EU regulations in re- spect to CO2 targets for cars, vans and trucks. The EU has rejected the appeal of the lobbyists. The plastic industry has called to lift an EU wide ban on some single use plastic items because of health and hygiene concerns raised during the COVID-19 outbreak. Companies, however, should not be using the COVID-19 emergency to interfere with leg- islation banning the use of single use plastic bags or changing emission targets. They should rather take the opportunity to innovate and rethink the production value chains, including a return to “in- sourcing” and “onshoring”, even when they result in increased costs in the short term. This is the right moment for businesses to pose these questions, review their business models, adapt and emerge with a new wave of innovation to become more resilient and sustainable. Eu- ropean companies have the potential to recover stronger from this crisis and come up with decar- bonisation and resource efficiency strategies. An excellent example already entering the market is the production of electric buses using composite material from PET bottles for the bus body. Echo- ing Kristalina Georgieva from the International Monetary Fund, there should be no trap of short term thinking, no reshuffle of priorities in address- ing economic fallout today at the risk of weakening our fight against climate change. The emergency we are living in will go through vari- ous phases, but overall will continue for some time, with long lasting impacts on public health. This is the right time to look at existing problems through new lenses, the moment to turn the fight against climate change in a true opportunity for healthi- er cities, to mobilize sustainable investments as a driving force of the recovery to come. The pol- icy makers are committed to ensure the neces- sary stimulus for a “green renaissance” of the EU economy, this should go hand in hand with a push from companies for corporate innovation, aiming for sustainable and locally responsive business. The European Energy Efficiency Fund is co- investing with a Lithuanian company to provide leasing services of electric buses to the cities. They are locally produced, efficiently and intelligently designed using heat pumps to cool the lithium- titan ium batteries and transfer the heat to the bus cabin. Efforts to combat air pollution include indeed sustainable mobility in the first instance, together with an increased use of renewable energy as well as improved energy effi- ciency in buildings. Opportunities are at hand and should come further from the cutting-edge appli- cations, such as in the areas of waste management and plastic re-usage. They will likely drive a signi- ficant job creation already in the near term, whilst creating an overall impact that is wide reaching and long lasting. 1 “Four lessons we should learn from the pandemic”, Georg Kell, 11 April 2020 2 Among others: “Relation between pollution from particulate matter and virus spread in the population”, Italian Society of Environmental Medi- cine, University of Bologna, University of Bari March 2020; “Interaction between air pollution and respiratory viruses: time-series study of daily mortality and hospital admissions in Hong Kong”. Res Rep Health Eff Inst. 2010; “Association of daily mortality with ambient air pollution, and effect modification by extremely high temperature in Wuhan, China” Res Rep Health Eff Inst. 2010 3 “Exposure to air pollution and COVID-19 mortality in the United States”, Harvard T.H. Chan School of Public Health, April 2020 4 “Assessing nitrogen dioxide (NO2) levels as a contributing factor to coronavirus (COVID-19) fatality” Martin Luther University Halle-Wittenberg, April 2020 5 One of the main concepts behind the new urban plan of the City of Paris. It aims to transform the metropolis in a “city of proximity” where any main service is 15 minutes far, on a walking distance or by bike. The eeef in 2020 13

From the European Green Deal to the European Climate Law By Rahul Pratap Singh Investment Manager, the European Energy Efficiency Fund managed by Deutsche Bank AG ers and industry. At the EU level this implies that renewable sources in the EU’s energy mix to be at least 40 % by 20301 and an overall reduction of 36 and 39 % for final and primary energy consump- tion, respectively2. This will be complemented by a tax system that incentivizes heating and transport solutions which are aligned with the climate goals while mitigating the social impact and supporting vulnerable groups. Decarbonisation of the transportation sector The Deal anticipates growing demand for zero / low emissions vehicles. Under this scenario, it aims to reduce the CO2 emissions of new cars and vans by 2030, compared to the 2021 – notable a decrease of 55 % emission from cars; a decrease of 50 % emission from vans3 and 0 % emissions from any new cars by 20354. This needs to be accompanied by relevant charging or refuelling infrastructure for short / long journeys and an Emissions Trading System (ETS) to penalize high polluting vehicles; to stimulate the use of clean fuel, and to re-invest in clean technologies. Renovating the building stock The Deal requires the Member States to renovate homes and public building in order to use more renewable energy, and to be more energy efficient. Currently, 75 % of our building stock has a poor en- ergy performance, and so, there are over 35 mil- lion buildings that need to be renovated by 2030. Accordingly, the total floor area of all public build- ings should be renovated at least 3 % annually; the heating and cooling solutions should increasingly Throughout 2020, many of us have been belea- guered by news about human and economic losses. The pandemic and natural calamities in the past months have exposed our fragility as a society and reminded us all that the very existence of human- ity depends on our planet’s wellbeing. Therefore, protecting and preserving our planet is no longer a responsibility of a select few but an obligation for all of us. We must remain watchful to allow hu- manity to prosper within our planet’s tolerance. In the quest to keep the global temperature increase to well below 2 °C and pursue efforts to limit it to 1.5 °C, the Commission announced the European Green deal to transform Europe into the first ever climate neutral continent by 2050. The key man- tra is: put a price on carbon and put a premium on decarbonizing. Furthermore, the latest ambitions in the deal aims for a transitional, all inclusive “green” recovery from the pandemic and decou- ples economic growth from resource use. Once formally adopted, this European Climate Law regulation would enshrine the EU climate neutrality goals set out in the European Green Deal. The deal includes an architecture and a roadmap to meet the climate ambitions. This way, it would serve as a guiding compass for innovation in green tech- nologies along with economic and societal transfor- mation during the 2020’s and the future decades. At the time of compiling this report, Europe’s climate ambition called “Fit for 55” hinges on the pledge of the 27 EU Member States to reduce greenhouse gases (GHG) emissions by at least 55 % by the year 2030, compared to 1990 levels. Other relevant aspects of the European Green Deal are likely to impact investors, businesses public authorities and citizens are: Energy efficiency first and upgrading the energy mix The Deal mandates to put energy efficiency as a strategic priority and while doing so bring down both energy demand and emissions for consum- 14 eeef Annual Report 2020

use renewable energy by 1.1 % points each year un- til 2030 and in this way the building stock should reach a 49 % renewable benchmark by 20305. Job opportunities and fair competition The Deal predicts a significant increase in sustain- able, local and well-paid jobs across the entire value chains for key sectors such as construction, energy generation, transport, end-use and renovation. In the construction sector alone, some 160,000 ad- ditional green jobs could be created by 20306. The Deal presents is an opportunity for local industry that are active in these sectors to grow and to gen- erate higher employment. A new carbon pricing pol- icy will spring into action to protect local industry from unfair competition from other countries with less strict climate rules. Revitalizing natural carbon sinks The Deal proposes new criteria to avoid unsus- tainable forest harvesting and to protect areas of high-biodiversity value. Additionally, solutions such as use of suitable forest or agricultural waste for biomass power schemes can contributes to phase- out fossil fuels and decarbonize the economy. By restoration of Europe’s forests, soils, wetlands and peatlands, absorption of CO2 can be further in- creased, and the environment made more resilient to climate change. The new target is set at 310 Mt to increase natural carbon sinks. Underpinning investments from EU instrument There is an enormous incentive for the private sector to complement and participate in the EU climate ambition. Private capital will be met by roughly 1 / 3rd of the funding from “Next Generation EU” and the European budget for green projects, which together is more than EUR 500 billion at the Euro- pean level alone. On top of that you have to add the national provisions in the national budgets to support the ambition. With the climate goals objectively defined in the Green Deal, the Climate regulation translating these goals into legally binding targets, the underpinned availability of investments, the roadmap to the new target for GHG emissions reduction until 2030 and by choosing carbon pricing as a market-based in- strument to incentivise consumers, producers and innovators to adopt clean technologies, to go to- wards the clean and sustainable products, the stage is set for steady progress towards climate goals. This should be accompanied by objective tools to track progress, allow maneuverability, regu lar reporting, and assessing the latest evidence on climate change and its impacts. The above points illustrate the magnitude and im- pact of the EU’s net-zero carbon emission goals. It is clear that these require massive contribu- tions from private and public capital each year. The European Energy Efficiency Fund (eeef) is an instrument of the European Commission and has been financing projects that decouple economic growth from resource use. With a track record of over EUR 200 million committed in projects since 2011, the Fund has cut GHG emissions by 5.7 million tonnes of carbon dioxide equivalents, which ex- emplifies an average 64 % reduction compared to the baseline emissions and saved 1.4 million megawatt hours in primary energy. At the same time, the Fund has been instrumental in creating employment and boosting local economic growth in 9 European countries. The Fund embraces the opportunities and challenges inherent in the Eu- ropean Green Deal and looks forward to making significant contributions to this new growth strat- egy and green transition. 1 https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/ delivering-european-green-deal_en#cleaning-our-energy-system 2 https://ec.europa.eu/info/news/commission-proposes-new-energy-efficiency-directive-2021-jul-14_en 3 https://ec.europa.eu/info/sites/default/files/proposal_for_a_directive_on_energy_efficiency_recast.pdf 4 https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/delivering-european-green-deal_en#making-transport-sustainable-for-all 5 https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/ delivering-european-green-deal_en#renovating- buildings-for-greener-lifestyles 6 https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/ delivering-european-green-deal_en#leading-the-third- industrial-revolution

The mission The eeef’s mission is to contribute to advancing sustainable en- ergy for Europe, in the form of a public-private partnership (PPP) with a layered risk / return structure, to enhance energy efficiency and foster renewable energy within the European Union, primarily through the provision of dedicated financing to municipal, local, regional or national authorities or public or private entities acting on their behalf. Financing is generally provided directly or through partnerships with financial institutions. Investments by Country * 2% Great Britain 3% Lithuania 6% Netherlands 1% Germany 9% France 16% Portugal 8% Spain 18% Romania 38% Italy * Based on commitments signed to project, not including repayments or accrued interest. Matured investments not included. 18 eeef Annual Report 2020

Investments by Partner Institution * 143 million euros current committed capital 18% Banca Transilvania 9% CIMAC 5% City of Rennes 4% 7% City of Orléans City of Santander 6% City of Venlo 3% 11% Dancer Mobility Illuminated Cities 0.7% Jewish Museum Berl sin Foundation 2% Ore Valley Housing Association 5% Smart H&U 2% 22% 0.4% 4% 4% Universidad Politécnica de Madrid University Hospital S. Orsola- Malpighi University of Applied Sciences Munich Vila do Conde Wattosun Investments by Type of Partner Institution * Investments by Financial Instrument * 22 % Renewable energy 3 % Clean Urban Transport 75 % Energy efficiency 17.5 % Financial institution 82.5 % Direct investment 31 % Equity 18 % Subordinated debt 51 % Senior debt * Based on commitments signed to projects, not including repayments or accrued interest. Matured investments not included. Any discrepancy is due to rounding. The financing facility with Catfoss Renewable Energy Limited was closed by the end of 2020. The project has not reached required agreements / conditions in accordance with the financing facility to proceed with its implementation. The European Energy Efficiency Fund at a Glance 19

2030 The framework will help to: • Provide affordable energy • Increase the security of the EU’s energy supplies • Reduce dependence on energy imports • Create opportunities for growth and enhance environmental and health conditions The eeef’s objectives The Fund’s set-up The European Energy Efficiency Fund (eeef) aims to support the climate goals of the European Union (EU 2030 framework for climate and energy and the climate-neutral objectives of the European Green Deal) to promote a sustainable energy environment and foster climate protection by enabling projects in European cities, regions and communities to build resilient infrastructure. The Fund’s objectives are: • Contribute to the mitigation of climate change and transitioning to resilient, energy-efficient and green infrastructure • Achieve environmental and economic sustain- ability for the Fund • Build public-private partnerships for climate financing 20 eeef Annual Report 2020 The Supervisory Board represents the Fund’s share- holders. It provides permanent supervision of the management of the Fund and provides strategic advice to the Management Board on the overall development of the Fund’s activities. It is appointed at the General Meeting of Shareholders. The Management Board acts on behalf of the Fund, oversees its activities and is responsible for strategic decisions. It is the legal representative of the Fund. In compliance with the eeef’s founding documents and applicable laws and regulations, it has the power to administer and manage the Fund. The Investment Manager conducts the Fund’s busi- ness on behalf of the Management Board and the Investment Committee. The Investment Manager also manages the eeef TAF at arm’s length. Previ- ously, the Investment Manager also managed the European Commission Technical Assistance Facility. EU frameworktargets for climate and energy

2015 2016 2017 January ► Irish education minister Jan O’Sullivan launches a technical assistance project with the Limerick and Clare Education and Training Board in Ireland September ► The eeef sponsors the Smart Countries and Smart Cities Congress 2015 in Paris ► The eeef’s University Hospital S. Orsola-Malpighi transaction wins the CESEF Energy Efficiency Award November ► The eeef closes its first trans- action in Spain in cooperation with Universidad Politécnica de Madrid April ► The eeef joins the Investor Confidence Project Europe to boost investments in the energy efficiency sector June ► The eeef cooperates with ADHAC, the business association for the promotion of sustainable district heating and cooling networks, in Spain September ► The eeef deploys final EC TA amount to the city of Santander in preparation for a pioneer PPP contract for the street lighting upgrade in Spain December ► The eeef fully disburses financ- November ► The eeef closes its first ing to the Société Publique Locale d’Efficacité Énergétique (SPL), which has launched 10 refurbishment programmes for buildings with four different local authorities in the Région Rhône-Alpes in France ► The eeef fully deploys the construction phase financing of the energy efficiency upgrade to the University Hospital S. Orsola-Malpighi in Italy community-based transaction in the UK in cooperation with the Ore Valley Housing Association and the Renewable Energy Investment Fund (Scotland) December ► The eeef initiates the Fund’s own technical assistance scheme, the eeef TAF ► Investment activity ► Fund operations ► TA activity 24 eeef Annual Report 2020 February ► The SPL OSER in the Région Rhône-Alpes delivers invest- ments facilitated by the EC TAF of the eeef, combining market- based funding May ► Gijón becomes the first city to join the eeef to collaborate on the new eeef TAF ► First-time award to a Belgian energy retrofit project is won by RenoWatt, Best Energy Project 2017 attributed by the EC and the Berliner Energieagentur – project facilitated by the eeef via the EC TAF July ► Europe’s smart city Santander starts the implementation of the street lighting infra- structure upgrade facilitated by initial technical assistance from the EC TAF ► The Province of Ferrara is the second public authority join- ing the eeef to collaborate on the new eeef TAF October ► ISOM completes its award- winning energy efficiency upgrade of the Italian hospital S. Orsola-Malpighi December ► The eeef signs a MoU in Por- tugal for small-scale PV instal- lations across seven muni- cipalities’ public buildings

Increase in energy efficiency by 32.5 % Increase in the use of renewable energy by at least 32 % of EU energy consumption Reduction in greenhouse gas emissions by at least 40 % below 1990 levels The eeef’s business proposal If you are a developing a project in with these features the eeef can support your project, providing Avoiding CO2e emissions to at least 20 % of base- line Looking for funding in a (flexible) range between EUR 5 and EUR 25 m In one of the 27 EU countries Public entity … similar to the city of Venlo (NL), the Ore Valley Housing Association (UK) … Renewable energy As we have done with: the city of Orléans / Rennes (FR), the Ore Valley Hous- ing Association (UK) Private company liaising with a public entity … similar to Manutencoop (IT), Enertika (ES), Bolloré (FR), EDF Group (FR), Johnson Controls (DE) … Financial institution financing the above … similar to Banca Transilvania (RO) … Energy efficiency As we have done with: the city of Venlo (NL), the SPL – Région Rhône- Alpes (FR), University Hospital S. Orsola- Malpighi (IT), Universidad Politécnica de Madrid (ES), Banca Transilvania (RO), Jewish Museum Berlin Foundation (DE), University of Applied Sciences Munich (DE), the Ore Valley Housing Association (UK) Clean urban transport As we have done with: Bolloré – Paris, Lyon, Bordeaux (FR) TAILOR-MADE FUNDING: Debt E. g. the city of Venlo (NL), Bolloré (FR), the Ore Valley Housing Association (UK), University Hospital S. Orsola-Malpighi (IT) Equity E. g. the city of Rennes (FR), the city of Orléans (FR) Mezzanine E. g. Banca Transilvania (RO) Forfaiting structures E. g. Universidad de Politécnica de Madrid (ES) TECHNICAL ASSISTANCE: Closed EU TAF – 13 public authorities across Europe New eeef TAF launched 8 TA beneficiary contracts signed The European Energy Efficiency Fund at a Glance 21

Investment structure Investment decision bodies Investment instruments Investees Management Board Senior & sub-debt loans Loans Debt & equity Investment Committee Technical assistance Funding structure Cities (municipal / regional / national public authorities) EUR / local FX investment Sponsors Investment Manager EUR funding Junior tranche (C shares) Mezzanine tranche (B shares) Senior tranche (A shares) Super-senior tranche (Notes) Private partners of the public sector (ESCOs, utilities, etc.) The Investment Manager proposes potential new investment in line with the eeef’s eligibility criteria to the Investment Committee. Upon positive feed- back, the Investment Committee recommends the potential investment to the Management Board. The Management Board takes the final decision on the investment. The investees of the eeef are municipal, local and regional authorities or public and private entities acting on behalf of those authorities, such as utilities, public transportation providers, social housing associations, energy service companies (ESCOs), etc. Funding can be provided in euros and in certain cases also in local currencies. 22 eeef Annual Report 2020 Partnership dedicated to mitigating climate change

Development of the eeef since inception 2011 2013 2014 July ► The eeef is created and capitalised by the initiators EC and EIB and the founding investors CdP and DB 2012 January ► Operational and procedural set-up of the Fund is finalised March ► The Jewish Museum Berlin Foundation joins the eeef as its first partner institution via the ESCO Johnson Controls November ► Financing of building retrofit project at the University of Applied Sciences Munich via the ESCO Johnson Controls December ► The city of Santander cooperates with the eeef to receive technical assistance from the EC TAF May ► Financing of energy efficiency upgrade of the University Hospital S. Orsola-Malpighi in Italy ► The city of Córdoba benefits from the EC TAF June ► The eeef achieves financial close on its first equity investment, the city of Orléans’ CHP plant in France ► La Palma benefits from the EC TAF September ► The eeef enters into a green on-lending facility with Banca Transilvania in Romania November ► The municipality of Ringkøbing-Skjern signs a technical assistance agreement ► The Ore Valley Housing Association, Scotland, and the region of Rhône-Alpes benefit from the EC TAF December ► The eeef achieves financial close for its second equity investment, the city of Rennes’ CHP plant ► The eeef closes its first clean urban transport with Bolloré, France ► The cities of Marbella, Terrassa and Elche cooperate with the eeef via the EC TAF April ► Financial close for street lighting upgrade project with the city of Venlo ► The eeef achieves financial close for a senior financing facility for the Société Publique Locale d’Efficacité Énergétique (SPL) in the Région Rhône-Alpes June ► The University Hospital of Liège and the University of Liège sign a technical assistance agreement via the EC TAF July ► The Limerick and Clare Education and Training Board benefits from the EC TAF August ► GRE-Liège cooperates with the eeef on technical assistance via the EC TAF September ► Alentejo Central signs a tech- nical assistance agreement via the EC TAF December ► The municipality of Zaanstad and the Roscommon County Council benefit from the EC TAF ► Investment activity ► Fund operations ► TA activity The European Energy Efficiency Fund at a Glance 23

2018 2019 2020 June ► A Technical Assistance Agreement was signed to renovate public buildings in the Autonomous Province of Bolzano in Italy ► eeef has launched discussions with potential private investors in Germany September ► The eeef TAF collaborates with the Ukmerge District Municipality Administration in Lithuania to upgrade municipal school buildings December ► The Management Board approved the Joint Venture with the Lithuanian electric bus manufacturer “Dancer” May ► Deutsche Bundesstiftung Umwelt joined eeef to ad- vance sustainable energy for Europe June ► LuxFLAG granted eeef the “Environment Label” July ► The eeef signed a TA Contract with the Administration of Šilutė District Municipality October ► The eeef TAF collaborated with the Klaipėda University Hospi- tal in Lithuania December ► The Management Board approved the forfaiting mech- anism for the municipality of Vila do Conde in Portugal to upgrade the public street lighting infrastructure February ► Three projects complete the final stage under European Commission technical assistance managed by the eeef successfully, including the Spanish cities of Terrassa and Marbella as well as the Portuguese public authority Alentejo Central March ► The Italian Ministry of Defence collaborates with the eeef TAF to refurbish the Ducal Palace of Modena October ► The eeef and Siram become partners to advance smart cities in Italy via a new joint venture December ► The eeef and Sinloc collaborate towards Smart Hospitals and Universities in Italy via a new joint venture ► The eeef and CIMAC via I-Quatro enter into a forfaiting agreement to upgrade the street lighting infrastructure in 14 municipalities ► The Kaunas District Municipality Administration in Lithuania joined the eeef Technical Assistance Pro- gramme to enhance energy efficiency of the street light- ning infrastructures, expand- ing eeef’s activity into Eastern Europe. The European Energy Efficiency Fund at a Glance 25

The eeef’s investments Since its inception, the eeef has committed a total of EUR 204 m, of which EUR 149 m have so far been disbursed in 18 partner institutions. Germany (Berlin, Munich) € 1.6 m • € 1.0 m forfaiting loan to the Jewish Museum Berlin Foundation via the ESCO of Johnson Controls • € 0.6 m forfaiting loan to the University of Applied Sciences via the ESCO of Johnson Controls Italy (Bologna, Northern Italy) € 54.8 m • € 31.8 m senior loan and VAT facility to Progetto ISOM for the upgrade of the University Hospital S. Orsola-Malpighi • € 16.0 m equity investment in the JV Illuminated Cities with Siram by Veolia for a portfolio of invest- ments (EE: smart public lighting) • € 7.0 m equity investment in the JV Smart Hospitals & Universities with Sinloc for a portfolio of investments Spain (Madrid, Santander) € 11.7 m • € 2.2 m senior debt facility to the Ore Valley Housing Association via the SPV Cardenden Heat and Power • € 2.5 m forfaiting loan to the Universidad Politécnica de Madrid via Enertika • € 9.2 m forfaiting loan to the city of Santander to upgrade existing street lighting 28 eeef Annual Report 2020 France (Orléans, Rennes, Paris, Lyon, Bordeaux, Rhône-Alpes) € 47.4 m • € 5.1 m shareholder loan and equity for the city of Orléans’ CHP plant • € 7.3 m shareholder loan and equity for the city of Rennes’ CHP plant € 30.0 m senior debt to Bolloré (matured) € 5.0 m senior debt to the Société Publique Locale d’Efficacité Énergétique (SPL) in the Région Rhône-Alpes (matured) Romania (various locations incl. Cluj-Napoca, Bucharest) € 25.0 m • Subordinated loan to Banca Transilvania for on-lending into energy efficiency and renewable energy projects United Kingdom (Cardenden, Scotland) € 2.2 m Portugal (Lisbon, Alentejo region) € 22.3 m • € 5.1 m junior funds for PV to be invested in the installation of solar panels developed by Wattosun • € 12.1 m forfaiting facility to CIMAC I-Quatro to upgrade existing street lighting • € 5.1 m forfaiting facility to Vila do Conde I-Quatro to upgrade existing street lighting Netherlands (Venlo) € 8.5 m • Senior debt facility to the city of Venlo for smart public lighting Lithuania (Klaipeda) € 4.0 m • € 4.0 m joint venture with Lithuanian electric bus manufacturer Dancer

France City of Orléans The operating combined heat and power (CHP) plant has an installed capacity of 7.5 MW in electricity and 17 MW in thermal heat. The plant supplies heat to the city of Orléans and sells electricity via a power purchase agreement (PPA) to Électricité de France (EDF). Orléans Biomasse Énergie, the project’s special purpose vehicle (SPV), is major- ity owned by the eeef (purchase of 84.4 % of its shares). This project was the first equity invest- ment by the Fund. The project enables a decentralised energy sup- ply for the city of Orléans using an existing district heating network. The plant, which is fired by wood Key figures biomass from a regional source, allows 15,000 households in the city to achieve annual savings of around EUR 200 each with the new energy source and increases the environmental sustainability. Sector: Renewable energy / biomass CHP Type of investment: Equity and shareholder loan Total project size (¤m): eeef investment size (¤m): 36.0 5.1 Maturity Observed t CO2e emission savings (p.a.): 19 years 13,457 Financial close: 12.03.2013 30 eeef Annual Report 2020

France City of Rennes Following a bid for tenders launched by the French Commission de Régulation de l’Énergie (CRE3) for the production of green energy using a biomass cogeneration plant, Rennes Biomasse Énergie SAS was authorised to build and operate a combined heat and power facility with an electrical output of 10.4 MW and a thermal output of 22 MW for the next 20 years. Rennes Biomass Énergie, the pro- ject SPV, is majority owned by the eeef (purchase of 85 % of its shares). This was the second equity investment signed by the eeef. Key figures The project enables a decentralised energy sup- ply for the city of Rennes using an existing district network. The plant enables 21,000 households in the city both to save money with the new energy source and to increase their environmental sus- tainability. The project generates sustainable heat aligned with offtake requirements and, due to the biomass fuel, achieves significant carbon savings compared to baseline. Type of investment: Equity and shareholder loan Total project size (¤m): eeef investment size (¤m): 47.6 7.3 Maturity Observed t CO2e emission savings (p.a.): 20 years 12,009 Financial close: 12.12.2013 Sector: Renewable energy / biomass CHP

Germany Jewish Museum Berlin Foundation The Jewish Museum Berlin and the energy service company (ESCO) Johnson Controls entered into an energy performance contract (EPC) for the m useum buildings in 2012. The eeef’s initial investment totalled EUR 1.7 m. In 2015, the project scope was revised and consequently the eeef’s investment size was reduced to EUR 1.0 m. The project includes a number of energy efficiency measures, including the optimisation of the heating, ventilation and air conditioning and an efficient energy management system. The first energy au- dit for the project was completed in 2017 and the annual primary energy savings for 2020 equated to 14,721 MWh. Sector: Energy efficiency / building retrofit Key figures Type of investment: Financial close: Forfaiting loan 20.03.2012 Total project size (¤m): eeef investment size (¤m): 1.4 0.9 Maturity Observed t CO2e emission savings (p.a.): 13 years 3,326 Germany University of Applied Sciences Munich Sector: Energy efficiency / building retrofit / CHP plant The University of Applied Sciences Munich and the energy service company (ESCO) Johnson Controls entered into an energy performance contract (EPC) for both of the buildings on the university’s cam- pus in Munich-Pasing, with a total EPC volume of EUR 1.1 m. The ESCO and the university agreed to energy effi- ciency measures composed of the optimisation of the heating, lighting, metering, building management and pumping systems, as well as the installation of a 49.5 kW combined heat and power (CHP) plant. The project was implemented in 2013 and continues to achieve savings aligned with projections. In 2020, it achieved 2,221 MWh of primary energy savings compared to baseline, which is equivalent to 38 %. Key figures Type of investment: Financial close: Forfaiting loan 15.11.2012 Total project size (¤m): eeef investment size (¤m): 1.1 0.6 Maturity Observed t CO2e* emission savings (p.a.): 10 years 199 * The University of Applied Sciences purchases a renewable energy electricity blend, impacting the actual observed carbon savings. 32 eeef Annual Report 2020

Italy Illuminated Cities Sector: Street lighting Città Illuminate S.r.l. (Illuminated Cities) is the holding company for the joint venture (JV) between the eeef and Siram by Veolia, targeting a portfolio of street lighting projects in Italy, mainly benefit- ting small to medium-sized municipalities. The newly established joint venture will enable public entities to implement technically advanced solu- tions known as smart lampposts and enable the integration of multiple services within the street lighting infrastructure. These projects will en- hance public infrastructure whilst reducing public energy consumption. This is thanks to measures including the instalment of LEDs, management systems, video, Wi-Fi and charging stations for electric vehicles. The eeef is the main investor in the JV, while Siram acts as the industrial partner and full contractor for each project’s commission- ing and operation. The JV realized its first investment in the munic- ipality of Rozzano, Milan Province, where 5,250 lighting points are in the process to be upgraded to LED technology. The renewed infrastructure will deliver not only more efficient and better lighting quality, but will also integrate equipment to en- able multiple services, such as video surveillance, park management and pollution control. This pro- ject perfectly embodies the JV spirit, showing how also a small town of 42,500 inhabitants can be- come a smart city. Key figures Type of investment: Junior funds (equity and shareholder loan) Total project size (¤m): eeef investment size (¤m): 20.0 16.0 Maturity Estimated t CO2e emission savings (p.a.): 12 years 3,010 Financial close: 27.09.2018 Sector: Building retrofit Italy Smart H&U The eeef and Sinloc have launched a joint venture, which will contribute to enhancing energy efficien- cy in the healthcare and education sectors. The partnership takes the name Smart Hospitals and Universities (or Smart H&U) and targets a portfolio of investments in public hospitals and universities distributed across Italy. These facilities will scale up their energy efficiency profiles as well as the lev- el of services provided to the end users. Patients, students and staff will benefit from modernised infrastructures, including state-of-the-art building automation, heating and cooling systems, smart illumination and clean energy systems. On average, it is estimated that primary energy and carbon savings will improve by half and the energy performance of each facility will increase due to the installed energy efficiency measures. Key figures In light of the pandemic and the substantial de- lays caused to the project implementation, eeef and Sinloc consider changes in the business de- velopment strategy. Both parties agreed to amend the existing agreement and mutually release any financial commitment of a binding nature. Sinloc, with the eeef support, will keep working to advance the projects in pipeline and granted the Fund the exclusivity until 2024. Type of investment: Junior funds (equity and shareholder loan) Total project size (¤m): eeef investment size (€m): 22.0 7.0 Maturity Estimated t CO2e emission savings (p.a.): 12 years 7,421 Financial close: 21.12.2018 2020 Activities Report: Investments 33

Italy University Hospital S. Orsola-Malpighi Project video University Hospital S. Orsola-Malpighi here The project entity Progetto ISOM signed a con- cession agreement with the University Hospital S. Orsola-Malpighi, one of the biggest hospitals in Italy (1,758 beds). The eeef provided a project and VAT bond facility of EUR 31.8 m. tion of heat exchange substations and the inclu- sion of an underground tri-generation plant for the combined production of cooling, heat and power (CCHP), based on the energy consumption of the hospital facility, which is fuelled by methane gas. The project comprises a number of initiatives, which improve the energy efficiency of the entire fluid production and distribution system and reduce energy consumption. Such measures include the adoption of energy-efficient equipment such as centrifugal chillers and absorbers, the reconstruc- tion of the heat distribution networks, the renova- In 2020, carbon savings were 32 % compared to baseline, and primary energy savings were at 30 %. This upgrade of the entire energy system of the uni- versity hospital has been the biggest energy effi- ciency upgrade in Italy completed as part of a PPP. Key figures Type of investment: Financial close: Senior debt 08.05.2013 Total project size (¤m): eeef investment size (¤m): 41.0 31.8 Maturity Estimated t CO2e* emission savings (p.a.): 20 years 16,523 * Numbers based on contracted conversion factors. Sector: Energy efficiency / upgrade of entire energy system 34 eeef Annual Report 2020

Netherlands City of Venlo Project video City of Venlo here The city of Venlo and the eeef signed a long-term financing contract for EUR 8.5 m. The city’s existing public lighting is the biggest consumer of electrici- ty on its electricity bill. The city therefore prioritised upgrading its street lighting in order to reduce its energy consumption and CO2e emissions as well as to save costs for the public budget. By the end of 2020, 1,674 lighting poles were replaced and 17,169 luminaires were replaced with LED technology. The project is further proof of the city’s commitment to achieving environmental sustainability. This street lighting project is linked to preparation works resulting from technical assistance. Venlo benefitted from funding from the European Com- mission Technical Assistance Facility (EC TAF). This enabled the city to tender and select the equipment manu facturer for the provision of the LED equipment. Sector: Energy efficiency / street lighting Key figures Type of investment: Financial close: Senior debt 03.04.2014 Total project size (¤m): eeef investment size (¤m): 8.6 8.5 Maturity Observed t CO2e emission savings (p.a.): 15 years 873 2020 Activities Report: Investments 35

Portugal CIMAC In December 2018, the eeef signed the 12-year for- faiting facility of EUR 12.14 m with I-Quatro LDA (an ESCO company) to implement its first aggregated street lightning infrastructure transaction, with the mission to upgrade over 56,000 luminaires with- in 14 municipalities, including the UNESCO World Heritage site of Évora, represented by Comunidade Intermunicipal do Alentejo Central (CIMAC). The project will realise 74 % in primary energy (of 40,655 MWh) and carbon savings (of 5,192 t CO2e) annually compared to baseline consumption. Further- more, it will result in EUR 7.1 m in economic savings for the municipalities over the 12-year concession. On April 30, 2020, the officials of CIMAC inspect- ed the works and the implementation of measures to improve energy efficiency in the Public light- ing infrastructure of the 14 municipalities that Key figures Sector: Street lighting constitute the Inter-municipal Community of the Alentejo Central region. CIMAC certified that the works are executed in harmony with the stipulated clauses and the approved execution project. With that, the installation phase officially concluded and the service phase of the energy efficiency meas- ures were approved to being on the same date. In addition, approximately 650 special luminaires have been identified by CIMAC that need to be assembled during the service phase. Type of investment: Financial close: Forfaiting facility 27.12.2018 Total project size (¤m): eeef investment size (¤m): 16.6 12.1 Maturity Estimated t CO2e emission savings (p.a.): 12 years 5,669 Portugal Wattosun The eeef signed a memorandum of understanding (MoU) with Wattosun, Portugal, for a EUR 5.1 m equi- ty facility to finance a portfolio of self-consumption PV installations. The agreement encompasses seven subprojects estimating approx. 21,100 of 1.68 m2 solar panels (PV). When compared to baseline (the Portuguese electricity grid), the combined subpro- jects should annually save 2,802 tonnes of CO2e and 20,093 MWh of primary energy. The electricity is for self-consumption and would provide municipalities, state-owned companies and other public authorities with a financially at- tractive and environmentally friendly way to lower effective electricity costs and reduce their exposure to the volatile energy market. Two different business models are being consid- ered to attract public clients: Key figures • UPAC model: the public entity receives electri- city for self-consumption and in turn pays rent for the new PV set-up. • UPP model: the small subproject owns the new PV set-up on public properties and receives a payment from the utility company for energy fed into the grid. All sites are fully constructed. However, the project development is not progressing as expected. A re- view of the eeef investment size is under discussion. Sector: Renewable energy Type of investment: Junior funds (equity and shareholder loan) Total project size (¤m): eeef investment size (¤m): 10.0 5.1 Maturity Estimated t CO2e emission savings (p.a.): 14 years 2,802 Financial close: 29.12.2017 36 eeef Annual Report 2020

Sector: Street lighting Portugal Vila do Conde On December 30th 2020, eeef signed a forfaiting facility of EUR 5.1 million to finance renovation of the street lighting infrastructure in the munici- pality of Vila do Conde in Portugal. The signing of this agreement illustrates successful replication of eeef’s forfaiting facility to other project in Portu- gal, the first one being CIMAC, an inter-municipal community constituted in the Central Alentejo re- gion, comprising of 14 municipalities. Key figures This upgrade is expected to realize 66.4 % in primary energy and CO2 savings annually com- pared to baseline, representing 16,517 MWh and 2,799 t CO2 e, respectively. In addition, the project will also generate approx. EUR 3.2 million of mon- etary benefits for the municipality over a 12-year period of concession. Type of investment: Financial close: Forfaiting facility 30.12.2020 Total project size (¤m): eeef investment size (¤m): 7.7 5.1 Maturity Estimated t CO2e emission savings (p.a.): 12 years 2,799 2020 Activities Report: Investments 37

Romania Banca Transilvania The eeef provided Banca Transilvania (BT), one of the largest banks in Romania in terms of as- sets, a facility for a green on-lending programme to support energy efficiency and renewable energy investment, by the public sector in Romania. Via this investment, the eeef has gained a strong local partner with a history of financing several energy efficiency projects and which has a solid footprint in financing SMEs. This cooperation is helping to strengthen the Romanian banking sector by provid- ing financing to energy efficiency and small-scale renewable energy projects. BT is using eeef fund- ing to give financial support to public and private building owners, homeowner / condominium as- sociations, municipalities, public sector entities and private sector companies acting on behalf of the public sector. It is the first cooperation between the eeef and a financial institution as well as being the first investment into Eastern Europe. The eeef is sup- porting BT in sourcing and evaluating underlying Key figures Sector: Energy efficiency / renewable energy / clean urban transport projects where needed, and the latter ensures that the financed projects comply with the eeef’s re- quirements with respect to a CO2e emission / prima- ry energy consumption reduction of at least 20 %. Further more, the eeef can jointly finance projects with BT if larger financing amounts are required. At the end of 2020, BT had financed and enabled 10 projects. The to-date cumulative savings of the projects are 348,543 MWh in primary energy. Type of investment: Subordinated debt 26.09.2013 Financial close: Total project size (¤m): eeef investment size (¤m): 25.0 25.0 Maturity Estimated t CO2e emission savings (p.a.): 10 years 7,914 Portfolio facts 48.8 million euros total volume financed through the facility 3 technologies funded 10 subprojects funded 81,814 tons of cumulative CO2e savings 14 different project locations reached 348,543 megawatt hours of cumulative primary energy savings 38 eeef Annual Report 2020 * Cumulative savings are based on subprojects loan maturity

Sector: Clean urban transport Lithuania Dancer Mobility eeef invested together with UAB “Vejo Projektai”, a Lithuanian manufacturer of electric Dancer buses. The Fund and Dancer have established the compa- ny “Dancer Mobility” to provide all-inclusive opera- tional lease services of electric buses manufactured in Lithuania to public authorities. Dancer Mobility will finance the purchase of e-bus- es and their operation, in the frame of all-inclusive operational leases provided by the company to public authorities and covering the bus usage, charging infrastructure, green energy supply and full maintenance. Key figures Type of investment: Equity and shareholder loan Total project size (¤m): eeef investment size (¤m): 5.0 4.0 Financial close: 23.02.2020 Maturity Estimated t CO2e emission savings (p.a.): up to 10 years 1,344 2020 Activities Report: Investments 39

Spain Universidad Politécnica de Madrid The recent 2020 annual energy audit validated that carbon savings were above 30 % compared to baseline. Following directive 2012 / 27 / UE of the European Parliament, in June 2015, Universidad Politécnica de Madrid (UPM) invited energy service companies (ESCOs) to present their proposals to improve the heat and water supply systems across the cam- pus and to reduce CO2e emissions by switching to a cleaner fuel source. In August 2015, the project was awarded to Enertika (Ingeniería y Servicios de Eficiencia Energética S. L.), an engineering company specialising in energy generation, energy efficiency and remote management services. The project replaced 63 gas oil boilers, consuming on average 946,479 litres of gas oil per year, with 66 natural gas boilers in all 32 campus buildings. Sector: Energy efficiency / building retrofit Key figures Type of investment: Financial close: Forfaiting loan 18.11.2015 Total project size (¤m): eeef investment size (¤m): 2.5 2.5 Maturity Observed t CO2e emission savings (p.a.): 9 years 791 Spain Municipality of Santander benefits for the municipality over the period of con- cession. The official acceptance of the renovation works was signed in December 2018. At the end of 2020, the project realized annual primary en- ergy savings of 39,462 MWh. Sector: Street lighting The municipality of Santander benefitted from funding from the European Commission Technical Assistance Facility (EC TAF) managed by the eeef in order to conduct feasibility studies and, subse- quently, launch the ESCO tender for the renovation works. The tender was awarded to Elecnor S.A. The eeef provided a forfaiting facility to Elecnor S.A., where the latter received EUR 9.2 m to finance the works. The facility will be fully repaid within the 15 years of concession period. The project is to upgrade 22,700 lighting points to LED luminaires. Each luminaire will also have wireless connectivity to the municipality’s digi- tal communication network and control system. In addition, it will result in EUR 5.4 m in monetary Key figures Type of investment: Financial close: Forfaiting facility 18.08.2017 Total project size (¤m): eeef investment size (¤m): 9.2 9.2 Maturity Observed t CO2e emission savings (p.a.): 14 years 4,404 40 eeef Annual Report 2020

United Kingdom Ore Valley Housing Association Project video Ore Valley Housing Association here The OVHA was one of the first technical assis- tance (TA) beneficiaries under the eeef European Commission TA Facility. Since deploying TA funds, the eeef has worked closely with the OVHA by pro- viding guidance to support project development to realise investments. The eeef supported the OVHA in the development of a new project scope for a on-shore wind turbine and the replacement of over 170 outdated gas boilers in residential build- ings owned by the housing association in the Fife council area in Scotland. Sector: Energy efficiency / renewable energy The eeef has closed its first community-based trans- action in the UK in cooperation with Cardenden Heat and Power (CHAP), a subsidiary of the Ore Valley Housing Association (OVHA), which received funding from two external financing parties for their small-scale renewable energy and building retrofit project. The eeef co-financed the project alongside the Scottish Investment Bank, the investment arm of Scottish Enterprise, through their Renewable Energy Investment Fund. The project (total volume EUR 5.5 m) is a combi- nation of a small-sized on-shore wind turbine and boiler replacements in social housing. The wind turbine is located at Cardenden close to the hous- ing association’s main office sites in Fife and was provided by market leader Enercon. Operations commenced during 2017 and the project secured a guaranteed feed-in tariff for 20 years from the Office of Gas and Electricity Markets (Ofgem); how- ever, to increase project returns, the CHAP entered into a two-year power purchase agreement with EDF to secure a better tariff than the feed-in tariff for electricity sale to the national grid. Key figures Type of investment: Financial close: Senior debt 04.11.2016 Total project size (¤m): eeef investment size (¤m): 4.3 2.2 Maturity Observed t CO2e emission savings (p.a.): 16 years 528 2020 Activities Report: Investments 41

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

France SPL – Région Rhône-Alpes Project video University Hospital SPL – Région Rhône-Alpes here The Société Publique Locale d’Efficacité Énergé- tique (SPL) benefitted from funding from the Euro- pean Commission Technical Assistance Facility (EC TAF) managed by the eeef for the initial preparation works and the finalisation of the project scope. Subsequently, the SPL signed a loan agreement of EUR 5.0 m to manage the short-term financing needs to refurbish public buildings during their construction phase and to pave the way for rais- ing further long-term financing. In 2018, The SPL repaid their debt facility as all 10 building retrofit projects were fully completed and commissioned, fulfilling the purpose of the project. On the one hand, the project continues to contribute to the eeef’s carbon balance aligning with carbon accounting standards until the end of economic maturity; on the other hand, according to the vice president of high schools in the Auvergne-Rhône- Alpes region, Béatrice Berthoux, the SPL project supports the essential movement to sustainable development of the region as well as helps raising the awareness of sustainability among the school pupils, which has longer-term effect. As shared by Éric Fournier, the vice president of the reginal council in the delegate for Environment, sus- tainable development, energy and regional nature parks, the eeef which supported SPL project, has set an effective example of public private partner- ship (PPP) in upgrading the public building energy efficiency and showcases eeef’s crucial role in the start-up phase in terms of construction financing and TAF. The region intends to progressively up- grade all their public school building in the coming years. SPL OSER – of which the region Auvergne- Rhône-Alpes is the majority shareholder, is a main regional actor in its mission to upgrade the pub- lic building efficiency refurbishment projects and renewable energy installation in public buildings. The valuable lessons from the success story of the SPL project will pave way for SPL and Rhône-Alpes region to achieve long-term objectives of energy savings and greenhouse gas reduction. Sector: Energy efficiency / building retrofit Key figures Type of investment: Financial close: Repayment: Senior debt 03.04.2014 12.02.2018 Total project size (¤m): eeef investment size (¤m): 25.0 5.0 Maturity Estimated t CO2e emission savings (p.a.): 5 years 992 2020 Activities Report: Investments 43

Funding situation The European Energy Efficiency Fund S.A., SICAV-SIF, was initiated by the European Commission in cooperation with the European Investment Bank. 2020 marked an important milestone in eeef’s growth path with the entrance of the Deutsche Bundesstiftung Umwelt (DBU), as the first private investor to join eeef. The Fund intends to call upon the 10 m euros committed by DBU within 2021. The initial capital provided by the European Commission (EUR 97 m) was increased by contri- butions from sponsors comprising the European Shareholder structure based on called amounts Investment Bank (EUR 21.2 m), Cassa Depositi e Prestiti (EUR 16.9 m) and DWS (EUR 5.0 m), asset management arm of Deutsche Bank. The eeef continues its fundraising activities to en- sure constant investor commitments from the private and public sectors to grow the Fund sustainably. 5 m (3.6 %) DWS Group* 21.2 m (15.1 %) European Investment Bank 140.1 million euros total 16.9 m (12.1 %) Cassa Depositi e Prestiti S.p.A. 97.0 m (69.3 %) European Commission Current division of investments committed to the eeef 97.0 m (69.3 %) European Commission (EC) 21.2 m (15.1 %) European Investment Bank (EIB) 16.9 m (12.1 %) Cassa Depositi e Prestiti S.p.A. (CDP) 5.0 m (3.6 %) DWS Group* 140.1 million euros total * Previously known as DB’s class B shares in eeef have been transferred to DWS Group in 2019 which at majority is owned by Deutsche Bank AG Group. 46 eeef Annual Report 2020

Current division of share classes according to called amounts and remaining commitments Notes A shares B shares C shares Total Total commitment in EUR Drawn in EUR Undrawn in EUR – 42,881,080 10,166,319 97,044,399 – 32,881,080 10,166,319 97,044,399 – 10,000,000* – _ 150,091,798 140,091,798 10,000,000 * Undrawn committment from DBU The eeef funds itself across three different share classes: class C shares, which represent the Fund’s first loss piece and how shares are referenced; class B shares, which rank senior to the class C shares; and class A shares, which rank senior to the other two share class- es but junior to all of the Fund’s other creditors. All these share classes bear voting rights. While class C shares are essentially designed to correspond to the expec- tations of governments, the other two share classes are of a more commer- cial nature and are currently held by development banks and the Investment Manager, Deutsche Bank. The Fund can issue notes designed for private inves- tors. Private investors are senior to all share investors but bear no voting rights.

The eeef’s technical assistance facility ► EUR 389,500 approved to Ferrara Province ► EUR 400,000 approved to the City of Gijón ► EUR 340,000 approved to the Italian Ministry of Defense ► EUR 180,000 approved to Kaunas District Municipality ► EUR 400,000 approved to the Autonomous Province of Bolzano ► EUR 160,000 approved to Ukmerg District Municipality ► EUR 195,000 approved to Šilutė District Municipality ► EUR 195,000 approved to the Klaip da University Hospital Following the European Commission TA Facility managed by the eeef, the Fund set up the eeef TAF to support ambitious public beneficiaries in developing bankable sustainable energy investment pro- grammes. These projects shall relate to the energy efficiency sector, renewable energy and / or public urban transport. The eeef TAF aims to bridge the gap between sustainable energy plans and real in- vestments by supporting all activities necessary to prepare investments into sustainable energy pro- jects. Eligible applicants are regions, city councils, universities, public hospitals, public-owned water companies and other public entities located in the member states of the European Union. On average, the development of an energy efficiency project in the public sector requires around 4.5 years from the con- ceptual phase to implementation. The eeef TAF efficiently reduces this time frame to 1.5–2 years by directly allocating consultancy services to the TA beneficiaries (tender of these consultancy services completed by the eeef). This means that the eeef selects appropriate experts with the required know- how and expertise via a tender process (completed entirely by the eeef) and assigns them to the relevant investment pro- grammes. The TA beneficiaries can use the consultant servic- es to, for example, carry out feasibility studies, energy audits and evaluate the economic and financial viability of their in- vestments. Legal support for the investment programmes to draft the PPP tender documents is also included in the TA, while costs can be covered by the eeef. From the TA Facility inception to date, the eeef has contrib- uted a total of EUR 1.3 m, which were supplemented by the European Investment Bank (“EIB”) – European Local Ener- gy Assistance (“ELENA”) TA Facility under the Horizon 2020 Programme of the European Union by EUR 1.9 m. The eeef’s Facility available for projects has a total reached over EUR 3.2 m by Q4 / 2020. The first call for proposals of the eeef TAF was successfully closed on 1 March 2017. It attracted interest among various public authorities within the EU. Afterwards, the eeef received further applications from public authorities in Lithuania. By the end of 2019, eeef published an open call for proposals to allocate consultant services required for the projects, subject to the availability of funds. The new call for proposals was closed on 04 December 2019. From the call for proposals, the eeef selected a pool of con- sultants who will work closely with the public authorities dur- ing the preparatory phases, from feasibility studies to energy audits to assistance in the public tender processes. So far, eight public beneficiaries have been selected across Spain, Italy and Lithuania to participate in the TA programme. Likewise, four projects (Ferrara Province, Modena, Kaunas and Gijón) have already published the tender by Q4 / 2020. Application by public authority • Submission of standard application • Selection if eligibility criteria are met Scoping of the TA project TA implemen tation Monitoring and reporting Public procurement Financing • Allocation of eeef • Advisory services • Monthly time • Upon positive • Entering into consultant • Scoping of work jointly by TA beneficiary and consultant according to agreed implementation timeline sheets to monitor TA progress • Further reporting outcome, procure- ment of investment programme • Selection of ESCO ( s) financing phase with eeef • Signing of financing- contract 50 eeef Annual Report 2020 Maximum two years

Eligibility criteria and application procedure A request for technical assistance has to meet the following eligibility criteria: • Beneficiary has to be a public authority (municipal, local, regional or national) or a public-owned company • Primary energy savings of at least 20 % on an annual ba- sis (20 % reduction of CO2 equivalents for certain other technologies, i. e. renewable energy) • Minimum leverage factor of 20 (final investment volume of the project divided by TA support amount) • Financing of the project to be provided by the eeef (EUR 5 – EUR 25 m) The first call for proposals for TA beneficiaries planning sus- tainable investment programmes was initiated by the end of 2016 and successfully closed in Q1 / 2017. The newly launched facility attracted interest among various public authorities seeking support to develop their sustainable project plans. The remaining funding is available on a first come, first served basis by applying directly to the Fund. During 2019, the eeef TAF has received applications of several TA beneficiaries from Lithuania. Therefore, the eeef published a new open call for proposals in November 2019 to search for consultants to assess potential projects in the country. The call for proposals was closed on 04 December 2019. Up to now, eight public beneficiaries have been selected under this facility. The eeef is currently reviewing new TA ap- plications, e. g., from Latvia and expects to achieve contrac- tual closing by Q1 / 2021. Additionally, eeef is in preliminary discussions with further public authorities in Italy, Lithuania and Spain (País Vasco). New applications can be submitted to: technical_assistance@eeef.eu Further details: https://www.eeef.lu/eeef-ta-facility.html 1. eeef selects consultants 2. eeef matches consultant with TA beneficiary TA beneficiary (public entity) TA work performance on eeef mandate eeef TA TA agreement eeef consultant Consultancy agreement eeef 3. Joint definition of project scope 5. 4. Progress monitored monthly by eeef Bankability built along the development process. eeef providing project funding is a condition to receive TA support Technical Assistance Support 51

Street lighting Gijón is the first city to join the eeef to collaborate on the new eeef Technical Assistance Facility Ayuntamiento de Gijón was the first public authority to participate in the new eeef Technical Assistance Facility. With the full commitment of its mayoress, the City of Gijón embarked on an ambitious journey to fi- nalise the comprehensive and intelligent manage- ment of electricity and thermal supply of street lighting, municipal buildings and facilities, iden- tifying a set of energy efficiency and / or renewable energy related interventions as well as publishing the tendering documentation to launch a EUR 23 m investment programme in renovation works and se- lecting an ESCO company to realise the measures within a two-year time frame. The eeef has been accompanying the city during the whole process by collaborating with the management team pro- posed by the city. By mid-2019, the TA works have been completed. In May 2019, Spain went through local elections and a new authority was appointed in the City of Gijón. Due to political changes, the project was delayed over one year in its implementation. Recent developments In August 2020, eeef extended the TA contract with the TA beneficiary. With an updated milestone plan in place, the new launch date for the market consultation process started in August and ended in October 2020. In December 2020, “La Junta de Gobierno” finalised the market consultation pro- cess and published the answers. Consequently, on 20 December 2020, the tender was published on the City of Gijón website and the Spanish State Contracting Platform. The submissions of offers are expected to be closed in March 2021. Project Partner The City of Gijón is the largest munici- pality within the community of Asturias, Spain, with a population of 270,000 citi- zens. For over three years, the city has been developing its European agenda and positioning itself as “Gijón en Eu- ropa” with a number of projects and in- itiatives at the European level. 52 eeef Annual Report 2020

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

Building upgrades The Italian Ministry of Defence is the third public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility The Ducal Palace in Modena (Italy) is owned by the Italian government and is currently used by the Italian Ministry of Defence (MoD). The Ducal Palace houses the headquarters of the Military Acade- my, where military students are trained. Additionally, part of the Eastern Tower of the palace houses the University of Modena and Reggio Emilia’s (UNIMORE) geophysical / meteorological observatory, and the first floor is used as a museum where guided tours are offered by the Municipality of Modena. 54 eeef Annual Report 2020

The MoD is the beneficiary of the eeef. The technical assistance facility (TAF) set up a task force to elaborate on energy efficiency and renewable energy measures for retrofitting the palace under an EPC model. The project site is in the city of Modena in the Italian region of Emilia-Romagna. The Ducal Palace of Modena is one of the most important historical buildings in Italy. The palace was the residence of the Este dukes of Modena for more than two centuries. The total project volume is circa EUR 9 m, which includes EUR 5.2 m to upgrade thermal systems and EUR 3.8 m to renovate the building’s envelope. Planned measures include the following: • Upgrade of the thermal system: Installation of new pipes for the network dis- tribution plus improvements to existing ones, installation of advanced climate control sys- tems, replacement of old radiators, installa- tion of high efficiency boilers, retrofitting of the entire hot water system by disconnecting it from the central plant through new heat pumps. • Building envelope: Reducing thermal losses from the building envelope by installing thermal insulation in internal opaque walls with innovative materi- als and reducing the amount of air infiltration by improving window fittings. The eeef TAF provided consultancy services to com- plete fully fledged feasibility studies within the palace to clearly identify the current infrastructure and propose appropriate improvement measures within a building of such historical value. All of the recommendations have been in compliance with the architectural constraints required by law to protect the historical heritage of the palace. The proposed measures will help to maintain one of the most historical buildings in Italy according to the latest energy standards and promote energy efficiency. Recent developments With the TA works already completed and tender documents finalised, the tender was published in May 2020. The deadline for the submission of offers was extended until September 2020 due to numerous requests for extension (business opera- tors sought to be more prepared to face the pan- demic risks). Four bidders participated in the call for proposals and were eligible. It is expected to have a winner ESCO selected by Q1 / 2021. Technical Assistance Support 55

Street lighting The Kaunas District Municipality Administration is the fourth public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility The Kaunas District Municipality Administration, Lithuania, is planning the implementation of an ambitious investment programme to enhance the energy efficiency of the public street light- ning infrastructure in several elderships. There is a total of 25 elderships directly involved in this project, including Akademija, Alšėėnai, Babtai, Batniava, ČČekiškėė, Domeikava, Ežerėėlis, Garliava, Garlia parish, Kaččerginėė, Karmėėlava, Kulautuva, Lapėės, Linksmakalnis, Neveronys, Raudondvaris, Ringaudai, Rokai, Samylai, Taurakiemis, Užliedžiai, Vandžiogala, Vilkija, Vilkija parish and Zapyškis. This project supports the Kaunas District Municipal- ity Administration through their eldership structure to initiate a multitude of smaller projects, which all fall under the same financing umbrella and benefit from reduced investment cost. The project site is located in the Kaunas District Municipality, one of Lithuania’s biggest and most densely inhabited municipalities with nearly 100,000 people. One of the 60 district munici- palities in the country, it seeks to become an at- tractive centre for business, citizens, tourists and infrastructure. The Kaunas District Municipality has identified that renovating the current public lighting infrastructure would support the transi- tion towards a more desirable community whilst improving public energy consumption. The envisaged total project volume is EUR 5 m. The final project design is one deliverable by the eeef TAF. Recent developments The tender documents have been finalised and by the end of August 2020, they were published. The eeef TA team has been supporting the tender process and answering questions from potential bidders. Due to the municipality’s interest in in- cluding some specifications regarding the bid- der requirements, the tender was relaunched on 5 October 2020. The new deadline for submission of applications was set by 10 December 2020. Cur- rently, the tender evaluation process is ongoing. 56 eeef Annual Report 2020

The Autonomous Province of Bolzano is the fifth public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility Building upgrades The Autonomous Province of Bolzano (PBA) in Italy is planning the implementation of an am bitious investment programme for the renovation of up to 263 public buildings. The initial technical assistance activities will identify a representative sample of buildings from 27, which have been pre-selected. The Province has a population of nearly 530,000 inhabitants with a surface of almost 7,400 km². The project site is located in the north of Italy, particularly in the cities of Bolzano, Brunico, Bressanone and Merano (buildings location), which are four of the main towns in the Province. The project volume for the pilot programme is EUR 38.5 m. The aim is to develop a large pilot project to verify the overall feasibility of the retrofit model, to expand it to all 263 eligible buildings whilst mini- mising costs and risks for investors. The buildings owned by the Province are expected to consume less energy. Planned measures are the following: • Public buildings upgrades including room and façade insulation, installation of new windows and condensing boilers. • Installation of photovoltaic systems and efficient lighting. Recent Developments Audits and studies are completed. In March 2020, the market consultation process ended. Two pro- cedures were analysed for the publication of the tender: (I) Open public initiative procedure: the TA benefi- ciary provides the preliminary planning and relat- ed documents to select a private partner. (II) Private proposal of the PPP procedure: each possible private partner, based on the Province’s guidelines, participates in a first tender process and proposes a preliminary plan. A Project Pro- moter will be selected. Then an open tender will be initiated, based on the Promoter proposal (the Promoter will have the right to match the other participants’ proposals). The PBA has chosen the private proposal of the PPP procedure. The notice for tender to select the Project Promoter was published in August 2020. Despite the pandemic crisis, the PAB has received requests for information from many potential pro- moters (5), which shows the market interest in the project. The final tender is expected to be pub- lished by Q2 / 2021.

Building upgrades The Ukmerg District Municipality Administration is the sixth public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility The Ukmerg District Municipality Administration is the second public authority from Lithuania that will benefit from the eeef’s Technical Assistance programme. The capital of the municipality is Ukmerg , which is considered the largest settlement in the municipality. It is situated in Vilnius County and has 34,000 inhabitants. Currently, there are 12 elderships in the district: Deltuva, Lyduokiai, Pabaiski, Pivonia, Siesikai, Sesuoliai, Taujenai, Ukmerge, Vepriu, Vidiskes, Zelva, Zemaitkiemis, 10 towns, 508 villages, 104 communes The project site is in Vilnius County, Lithuania. In September 2019, the eeef signed a TA Agreement with Ukmerg District Municipality Administration, to help them preparing and implementing an am- bitious investment program for the renovation of five municipal public buildings: Ukmerg Dukstynos Primary School, Ukmerg District Taujenai Gym- nasium, Ukmerg District Vidiskes Basic School, Ukmerg children’s nursery “Eglute” and the Ukmerg Uzupis Primary School. This project aims to improve the buildings energy efficiency and ensure that they meet the national energy performance requirements to facilitate a positive contribution to the national strategic ob- jectives in energy efficiency. A preliminary assessment identified an estimated investment volume of EUR 4.7 m. The TA services, provided by experienced local consultants, will support the efforts of the Administration’s em- ployees to prepare the investment project. Sup- ported services include the preparation of energy audits, evaluating the economic viability of each investment, and structuring the tender documents to align with the PPP / ESCO model. Recent developments Audits and studies are completed. The investment study was approved by the Municipality Coun- cil in December 2020. Tender documents are al- most finalised and are expected to be published by Q1 / 2021. 58 eeef Annual Report 2020

The Administration of Šilutė District Municipality is the seventh public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility Building upgrades The Šilutė District Municipality is the third public authority from Lithuania that will benefit from the eeef’s Technical Assistance programme. It is situated in the southern part of Klaip da County, one of the most developing regions of the country. This is mainly determined by the Klaip da port, which is the only northernmost ice-free port in the Eastern part of the Baltic Sea. It has 37,641 inhabitants and an area of 1706 km2. It is divided into 11 elderships (Gardamo, Juknaiciu, Katyciu, Kintu, Rusnes, Saugu, Šilutės, Sveksnos, Usenu, Vainuto, Zemaiciu Naumiescio), seven towns and 311 villages. The TA Consultants appointed by eeef will provide energy audits and technical consultations, evalua- tion of the economic viability of each investment, including financial analysis, and structuring the tender documents to align with the PPP / ESCO model. Legal advisory services concerning these tasks will be provided. Recent Developments Audits and studies are finalised. The investment study (IP) has been reviewed by the municipality and sent to the CPMA for final approval. The ten- der is expected to be published Q2 / 2022. On 10 July 2020, the eeef and the Šilutė District Municipality signed a TA agreement to prepare an ambitious investment program that will improve the energy efficiency of municipal public buildings and ensure that they meet the national strategic objec- tives and energy efficiency requirements. The pro- ject aims to modernise 11 public buildings, which are the following: (I) Rusnes Culture House, (II) Šilutė nursery “Azuoliukas”, (III) Šilutė Pamario Primary School, (IV) Šilutė nursery “Gintarelis”, (V) Kintai Primary School, (VI) Saugai Jurgis Miksas Primary School, (VII) Šilutė District Municipality Sveksnos nursery, (VIII) Usenai Primary School, (XI) Šilutė District Municipality building, (X) Šilutė Hospital and (XI) Vilkyciai School. The project volume for the programme is circa EUR 5.6 m. It is expected to be distributed over a three year period (2022 – 2024). Technical Assistance Support 59

Building upgrades The Klaipėda University Hospital is the eighth public authority to join the eeef to collaborate on the new eeef Technical Assistance Facility The Klaipėda University Hospital (KUH) is located in the Klaipėda City Municipality, near the Baltic Sea and the Curonian Lagoon, one of the country’s most developing municipalities due to the Klaipėda seaport. The KUH is one of the largest and most important medical institutions in Lithuania, with circa 1,000 beds, 1,775 employees and an area of approximately 60,000 sq. m. The Hospital is engaged in academic activities allowing medicine students to perform their practice and activities of scientific research. The Klaipėda University Hospital (KUH) is an inde- pendent legal entity – public institution, founded and incorporated by the Council of Klaipėda City Municipality. It is well known for its highest quality services, modern medical equipment and highly qualified staff. Also, it provides multi-profile med- ical services to the inhabitants of Klaipėda and Lithuania. On 22 October 2020, the eeef and the Klaipėda University Hospital signed a TA agreement. The project volume for the programme is EUR 6.3 m. The aim is to develop an ambitious investment program that will enhance energy efficiency by upgrading three out of its four hospital build- ings and increasing high-quality microclimate conditions for patients and hospital personnel. This will facilitate the KUH to reach the required reno vation and energy levels to contribute to the local strategic objectives in energy efficiency and national targets. The three hospital buildings falling under the scope of the project are the following: (I) central build- ing, (II) oncology building and the outpatient con- sultation department, and (III) the infectious dis- ease building. Recent developments TA works already started. The performance of energy audits is still ongoing. 60 eeef Annual Report 2020

The eeef’s Technical Assistance Facility An overview The eeef Technical Assistance Facility (eeef TAF) was set up to catalyse investments for public enti- ties within the energy efficiency and small-scale renewable sectors. To date, the eeef has approved eight public beneficiaries, which are currently receiving consultancy services in various forms with the common aim of bringing the projects to fruition. Four of the eeef TAF programmes have already published tender (Ferrara Province TA, Modena TA, Kaunas TA and Gijón TA). Even though the TAF’s scope of work ends once the public beneficiary has launched the tender, the Fund’s support is not limited to provide technical assistance services; it also targets to reach closing and provide project financing through various financial instruments to ensure that the projects mate- rialise. 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. 54.42 potential total leverage factor (weighted average) 3 countries involved 123 million euros envisaged total project investment volume supported by the eeef TAF 49,146 MWh per year estimated primary energy savings 14,999 t CO2 e per year estimated carbon equivalent emission savings 13 public authorities involved Technical Assistance Support 61

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 20 % primary energy and / or carbon savings compared to baseline. The Fund may only invest when savings and other investment criteria are fulfilled. greenstem™ All of the eeef portfolio reported impact indicators are tracked in greenstem, a proprietary web-based tool from the Investment Manager which automat- ically and consistently calculates anticipated and realised energy, primary energy and carbon sav- ings. For small loans and standard technologies, greenstem completes calculations based on pro- ject-specific data inputs and project location / tech- nology conversion factors. The tool stores up-to- date energy and emission conversion factors to ensure a consistent reporting approach across the portfolio. Factor sources include the Chartered In- stitution of Building Services Engineers for tech- nology benchmark data and the Intergovernmen- tal Panel on Climate Change for the conversion of energy data into greenhouse gas emissions. Electricity emission factors are sourced from the International Energy Agency and are updated an- nually in line with ISO 14064-2, the carbon account- ing standard followed. All calculations and data sources used within the tool have been validated by a third-party engineering company. greenstem provides comprehensive, timely and accurate reporting charts and dashboards that have been configured specifically for eeef user groups. The tool is flexible and can be customised to include additional technologies in the portfolio. Project Assessment and Monitoring As the eeef can finance a variety of technologies, the initial technical assessment and ongoing moni- toring of investments must strike the correct bal- ance between accuracy and practicality of imple- mentation. How the eeef evaluates technical eligibility is based on the project’s technology and loan size; for example, small standard (e. g. street lighting) project savings can be calculated using validat- ed calculations from the Investment Manager’s carbon environment impact management (CEIM) tool, greenstem™ (greenstem). For projects with higher investment volumes and / or more complex technologies, detailed energy analyses are required in the form of 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 ener- gy 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 pro- ject partners on how to conduct project analysis via third-party validated annual audit templates. This ensures the entire portfolio reports using a consistent methodology. 64 eeef Annual Report 2020

Social and environmental management system (SEMS) The eeef aims to conduct its operations in line with the highest expectations regarding social and environmental responsibility. The eeef’s social and environmental management system (SEMS) defines the respective roles and responsibilities of the Fund and its partner institutions in promoting social and environmental sustainability. In general, these are in accordance with the Eu- ropean Investment Bank Statement on Environ- mental and Social Principles and Standards. For both types of investments – direct and financial- institution investments – the eeef SEMS has spe- cific performance requirements and procedures which are applied. Compliance with these is assessed during the due diligence process and monitored later on through- out the lifetime of the project. The environmental and social (E&S) screening checks areas such as the following, as well as other E&S issues and reputational risk: 1. 2. General environmental and social issues: EU policy, legal context and compliance, environmental impact assessment process, E&S principles and standards Environment, biodiversity and climate change: Environmental / transboundary impacts, protected areas, critical habitants, biodiversity, forestry, cultural heritage, vulnerability to climate change, climate change mitigation 3. Social: Social assessment, involuntary resettlement, vulnerable groups, indigenous people, labour standards, etc. Carbon, Environment & Impact Management 65

Primary energy and greenhouse gas emissions savings 2020 The eeef’s projects aim to achieve at least 20 % primary energy savings on an an- nual basis (higher for the building sector) and a 20 % reduction of 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- saving reporting. Due to the wide variety of technologies included in the eeef’s portfolio, the Investment Manager has developed a standardised approach to calculating the project energy, primary energy and carbon savings for the eeef’s most common project technologies. Carbon emission savings and primary energy sav- ings were reported for the entire portfolio of 17* investments / signed commitments for a range of energy efficiency and renewable technologies in- cluding 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 expect- ed 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 accumulated savings of 557,363 t CO2e and 850,584 MWh of primary energy savings through the end of 2020. Catfoss exited eeef's portfolio in Q3 2020, as the project has not reached the required agreements / condi- tions in accordance with the financing facility to proceed with its implementation. Subsequently, we removed Catfoss’ previous contribution to eeef’s cumulative primary energy savings and cu- mulative carbon savings. As a result, the below reported cumulative primary energy savings are lower than 2019, with cumulative carbon savings slightly higher than the previous reporting period. * As eeef signed the forfaiting facility to finance the renovation of the street lighting infrastructure in the municipality of Vila do Conde in Portugal on December 30, 2020, the project is excluded from the 2020 carbon and primary energy savings report. The project's estimated savings will be taken into account in the 2021 annual report. 66 eeef Annual Report 2020 17

Key technologies currently included in the portfolio: Building upgrades Street lighting Wind and Combined heat Electric solar and power cars Project Name Bolloré City of Orléans City of Rennes Jewish Museum Berlin Foundation University of Applied Sciences Munich Illuminated Cities Smart H&U University Hospital S. Orsola Malpighi City of Venlo CIMAC Wattosun Banca Transilvania2 Universidad Politécnica de Madrid Municipality of Santander Ore Valley Housing Association Dancer Mobility SPL Région Rhône-Alpes Total (all projects) Total (EE & CUT only) Reporting as of Q4 2020 1 – 6 Cumulative Primary Energy Savings (MWh) Primary Energy Savings (%) Cumulative CO2e savings (t CO2e) Carbon Savings (%) 34,167 -262,120 -346,256 82,514 16,212 55,950 145,386 391,698 31,831 91,472 65,302 348,543 10,205 138,669 21,291 9,092 16,628 850,584 1,458,960 15 -45 -44 89 38 56 55 30 60 74 100 50 15 79 99 92 42 47 60 47,540 132,741 100,895 18,693 862 7,878 17,786 90,833 6,227 13,938 9,068 81,814 5,171 16,050 2,557 1,344 3,968 557,363 93 62 50 93 23 56 46 32 60 74 100 50 36 79 96 100 58 65 1 All project savings are calculated following international protocols, including the International Performance Measurement and Verification Protocol (IPMVP) for energy accounting and ISO 14064 for carbon accounting. All methodologies used by the eeef are validated by a global en- gineering company. Currently, all projects with concrete data are reporting in alignment with these guidelines, and all new projects are aligned with these frameworks. Project savings represent total project investment volumes. The eeef uses up-to-date and project-specific conversion factors from sources including the International Energy Agency and the Greenhouse Gas Protocol. For some projects within the portfolio, factors cannot be updated due to project specifics, so they continue to report on factors issued within the loan documentation. All cumulative numbers are based on investments loan maturity. EE means Energy Efficiency, CUT means clean urban Transport, RE means renewable energy. The entire projects cover EE, CUT and RE projects. 2 The cumulative BT savings represent 10 subprojects. The portfolio’s percentage savings are calculated based on all subproject savings. Projects contribute to cumulative savings until the subloan has matured from the portfolio – i. e. at loan maturity. 3 For carbon, cumulative and percentage savings are based on the entire portfolio, percentage savings use the average. For primary energy, cumu- lative and percentages saving are presented for projects from the portfolio which provide primary energy savings, ie. energy efficiency and clean urban transport projects. For the sake of completeness, the cumulative and percentage primary energy savings are also provided for all projects. Matured investments are included within the total. 4 Cumulative data include calculations from financial close to loan maturity, based on estimations for projects under construction and with less than one year of operations and actual data for projects which have been in operation for over one year. Savings are for total project investment volume (ie. eeef and non-eeef investments). 5 Wattosun, Smart H&U and Dancer are based on signed commitments. Illuminated Cities are partly based on signed commitments as the con- struction for one sub-project has already completed. The savings for these three projects are based on estimates. 6 SPL matured in Q1 2018. Bolloré matured in Q1 2019. Catfoss did not reached required agreements / conditions in accordance with the financing facility to proceed with its implementation. The funds were transferred back to eeef’s account in Q4 2020. Carbon, Environment & Impact Management 67 17investments / signed commitments achieved CO2e and primary energy savings

Balance sheet Balance Sheet (in EUR) Assets Non-current assets Financial assets at amortised cost Debt instruments Financial assets at fair value through profit or loss Debt instruments Investments in associates and joint ventures Total non-current assets Current assets Restricted cash Interest receivable Prepaid expenses and other receivables Cash and cash equivalents Total current assets Total assets Liabilities Current liabilities Payable on eeef Technical Assistance Facility Interest payable Accounts payable and accrued expenses Distribution to holders of redeemable ordinary shares Total current liabilities Non-current liabilities Financial liabilities at fair v alue through profit or loss Derivative financial instruments Net assets attributable to holders of redeemable ordinary A shares Net assets attributable to holders of redeemable ordinary B shares Net assets attributable to holders of redeemable ordinary C shares Total non-current liabilities Total liabilities 70 eeef Annual Report 2020 31 December 20 31 December 19 79,674,479 71,968,972 12,491,829 11,433,899 103,600,207 357,519 615,164 190,483 49,536,030 50,699,196 8,836,024 10,386,331 91,191,327 32,462,664 806,730 944,232 26,379,802 60,593,428 154,299,403 151,784,755 226,298 – 3,751,357 431,704 4,409,359 280,286 42,177 1,491,026 435,560 2,249,049 2,448,848 2,111,507 32,881,080 32,881,080 10,166,330 10,166,330 104,393,786 104,376,789 149,890,044 149,535,706 154,299,403 151,784,755

Income statement Statement of profit or loss and other comprehensive income (in EUR) Income Interest income on debt instruments measured at amortised cost Interest income on debt instruments measured at fair value through profit and loss Dividend income Change in unrealised in fair value of investments in associates and joint ventures Change in unrealised in fair value of debt instruments Commission and fees income Change in unrealised gain on exchange Realised gain on exchange Other income Total income Expenses Direct operating expenses Realised loss on exchange Change in unrealised loss on derivative instruments Change in unrealised loss on exchange Performance fees eeef Technical Assistance Facility Loss allowance on debt instruments Interest expenses Total operating expenses Operating profit Distribution to holders of redeemable ordinary A shares and B shares Complementary dividend attributable to holders of redeemable ordinary C shares Allocation attributable to holders of redeemable ordinary C shares 31 December 2020 31 December 2019 3,899,023 3,515,999 222,012 – 247,568 278,872 – – – – 275,542 219,440 4,082,590 140,611 81,290 124,137 19,791 28,731 4,647,475 8,488,131 (2,303,510) (2,263,732) (29,586) (337,341) (109,987) (457,198) (226,299) (32,528) (702,325) – (739,942) – (496,573) (280,286) (18,797) (536,169) (4,198,774) (4,335,499) 448,701 4,152,632 (431,704) – (435,560) (108,684) (16,997) (3,608,388) Total comprehensive income for the year – – Financial Statements 71

Statement of changes in net assets Statement of changes in net assets attributable to holders of redeemable ordinary shares (in EUR) Net assets attributable to shareholders As at 31 December 2018 Issue of redeemable shares Redemption of redeemable shares Increase in net assets attributable to shareholders from transactions in shares Complementary dividend attributable to holders of redeemable ordinary C shares Increase in net assets from operations attributable to holders of redeemable ordinary C shares As at 31 December 2019 Issue of redeemable shares Redemption of redeemable shares Increase in net assets attributable to shareholders from transactions in shares Complementary dividend attributable to holders of redeemable ordinary C shares Increase in net assets from operations attributable to holders of redeemable ordinary C shares As at 31 December 2020 140,143,242 3,563,885 – 3,563,885 108,684 3,608,388 147,424,199 – – – – 16,997 147,441,196 72 eeef Annual Report 2020

Supplementary information Number of shares outstanding Class A shares – tranche 1 Class B shares – tranche 1 31 December 2020 31 December 2019 31 December 2018 328.8108 203.3266 328.8108 203.3266 328.8108 132.0489 Class C shares – tranche 1 1,569,960.9156 1,569,960.9156 1,569,960.9156 Net asset value per share class (EUR) Class A shares – tranche 1 Class B shares – tranche 1 Class C shares – tranche 1 Net asset value per share (EUR) Class A shares – tranche 1 Class B shares – tranche 1 Class C shares – tranche 1 32,881,080 10,166,330 32,881,080 10,166,330 32,881,080 6,602,445 104,393,786 104,376,789 100,659,717 100,000.00 50,000.00 66.49 100,000.00 50,000.00 64.48 100,000.00 50,000.00 64.12 Financial Statements 73

Cash flow statement Statement of cash flows (in EUR) Operating profit attributable to holders of redeemable ordinary C Shares Net changes in operating assets and liabilities For the year ended 31 December 2020 For the year ended 31 December 2019 16,997 3,717,072 Adjustments for non-cash items (156,571) (3,464,462) (Increase) / decrease in prepaid expenses and other receivables (Decrease) / increase in accounts payable and accrued expens- es (Decrease) / increase in contribution to the Technical Assis- tance Facility Interest income Interest expense Distributions paid to holders of redeemable ordinary shares 753,749 2,260,331 (53,988) (944,232) 57,551 3,711 (4,121,035) (3,791,541) (702,325) (3,856) (536,169) (113,315) Net cash flow (used in)/from operating activities (2,006,698) (5,071,385) Cash flows used in investing activities Decrease / (increase) in debt instruments Net (increase) / decrease in restricted cash Interest received Interest paid Net cash flow (used in) / from operating activities Cash flows from financing activities Issue of redeemable ordinary shares Net cash flow from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year (11,114,968) 32,105,145 4,312,601 660,148 25,162,926 – – 23,156,228 26,379,802 32,509,981 (32,462,664) 3,801,111 578,346 4,426,774 3,563,885 3,563,885 2,919,274 23,460,528 Cash and cash equivalents at end of the year 49,536,030 26,379,802 74 eeef Annual Report 2020

Imprint Publisher: The European Energy Efficiency Fund, S.A., SICAV-SIF 31 Z.A. Bourmicht L-8070 Bertrange Grand Duchy of Luxembourg Photo credits: Alex Kraus, Jeff Molliere, Lada Strelnikova, iStockphoto / vm, shutterstock / Roschetzky Photography Disclaimer The Fund is an investment company with variable capital (société d’investissement à capital variable) under the form of a public limited-liability compa- ny (société anonyme), governed by the laws of the Grand Duchy of Luxembourg, which is subject to the law of 13 February 2007 on specialised investment funds, as amended or supplemented from time to time. It qualifies as an alternative investment fund (AIF) within the meaning of the Luxembourg law of 12 July 2013 on Alternative Investment Fund Managers (the AIFM Law) and was registered as a “de minimis” alternative investment fund manager in accordance with article 3(2) of the AIFM Law. It is internally managed in accordance with article 4(1) b) of the AIFM Law. The Fund is reserved for certain eligible investors as defined in the issue document. The information given in this report constitutes neither an offer nor a product recommendation; it is provided for indi- vidual information purposes only. No guarantee is given or intended as to the completeness, 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 of- fering of shares and / or notes may be restricted in certain jurisdictions. The issue document does not constitute an offer or solicitation in jurisdictions where such an offer or solicitation is considered unlawful, where a person making such an offer or solicitation is not qualified to do so or where a per- son receiving the offer or solicitation may not law- fully do so. It is the sole responsibility of any per- son in possession of the issue document and of any person wishing to apply for shares and / or notes to inform themselves of and to observe all applica- ble laws and regulations of relevant jurisdictions. Distribution of the issue document by an unau- thorised person is prohibited and shall be solely at their own risk. Investors should inform themselves and should take appropriate advice as to possible tax consequences, foreign exchange restrictions or exchange control requirements which they might en- counter under the laws of the countries of their citi- zenship, residence or domicile or other applicable laws and which might be relevant to the subscrip- tion, purchase, holding, redemption or disposal of the shares and / or notes of the Fund. The shares and / or notes of the Fund have not been and will not be registered under the United States Securities Act of 1933 as amended from time to time (the 1933 Act) or any other applicable securi- ties laws of any of the states of the United States, for offer or sale, directly or indirectly in the United States of America, except pursuant to an exemption from the registration requirements of the 1933 Act as part of their distribution, and the Fund has not been and will not be registered under the United States Investment Company Act of 1940. This work is protected by copyright law. All rights reserved, in particular with respect to translation, reproduction, communication, copying of images and tables, broadcasting, microfilming or repro- duction by other means, as well as storage on data-processing equipment, even where such use only applies to excerpts. Reproduction of this work or parts thereof is permissible only within the scope of the statutory provisions. Imprint 75