Sustainable financing is growing worldwide, and the ING group has managed to mediate, in 2020 alone, more than 60 green bond issues with an average value of over 1 billion euros, said Oana Mogoi, Head of Utilities & Natural Resources, ING Bank, during the 7th edition of the Energy Strategy Summit, an event organized by Energynomics. Unfortunately, in Romania such tools are more difficult to develop, Oana Mogoi pointed out.
“In terms of green loans, the situation is similar. One appreciable initiative is the exercise of the CNSM (National Committee for Macroprudential Supervision – e.n.) with the NBR, this year – a working group attended by the main players in the industry and commercial banks, in order to help the market towards the idea of sustainable financing. However, one of the conclusions of this report was that green funding, as defined by the EU taxonomy, was granted on the Romanian market only very sporadically. Last year we had an excuse, we were all after the lockdown, so it’s kind of understandable. On the other hand, the issue of PPAs (power purchase agreements – e.n.) has been lagging on for nine years. We are not even talking about what happened on the green energy side or with GEO 114 – the two syncopes that threw us back years ago. At the same time, it seems that in recent years we have been trying to align domestic legislation with the European framework, from which we seem to be moving far away. I keep, however, a positive note – we must admit that lately, we have seen a sustained effort on the part of the authorities in terms of the legislative framework”, Oana Mogoi also said.
“We must understand that funding will now be directed with priority to supporting the energy transition, to the idea of sustainability. As a result, some technologies will suffer, compared to others – in practice, some technologies will be riskier [for financing]. We all need to move towards the idea of sustainability and green energy”, she added.
ING has become a green banking group – it has made public on its own initiative the level of its portfolio aligned with the objectives set by the Paris Agreement.
Bank financing in the energy area has long maturities, and the risks increase over time. Project financing involves additional risks, as it is aimed at new energy projects, and not as in the case of ordinary corporate loans, which require a long-term supply of revenue.
“In this sense, the stability of the legislative framework has a special importance, as well as the possibility to eliminate certain risks within the projects”, Mogoi also said.
2021 Energy Strategy Summit was organized by Energynomics, with the support of Automatica, BCR, CE Oltenia, Chimcomplex, E.ON România, Electrica Furnizare, Electroalfa, EnergoBit, Enevo Group, FPPG, Greencells, Horvath & Partners, ING Bank, Hidroelectrica, MET România Energy, Nuclearelectrica, OMV Petrom, Photomate, Rolls Royce, Romgaz, Schneider Electric, Signify, Transgaz.
