# Commission Implementing Decision (EU) 2018/210 of 12 February 2018 on the adoption of the LIFE multiannual work programme for 2018-2020 (Text with EEA relevance), Division 5.3.1.3: Structure of the financial instrument

Extent: E+W+S+N.I.

The implementation of the financial instrument is entrusted to the European Investment Bank (EIB) by means of indirect management.
The NCFF combines direct and indirect financing of projects through debt, equity, and a guarantee window. A technical facility is provided in order to ensure that projects reach a sufficient stage of maturity for financing.
The European Commission provided EUR 50 million for the risk-sharing mechanism and EUR 10 million for the technical support facility. On this basis, the EIB will invest up to EUR 125 million through loans, guarantees for loans and equity investments. Loans can be provided either directly to final beneficiaries to finance investments and operating costs, or indirectly through intermediaries which then finance a portfolio of loans. Guarantees for loans can be provided to intermediaries. Equity investments can be used for investment in funds managed by intermediaries. These options can be combined with action grants under thematic priorities or support from other sources.
The facility includes a risk-sharing mechanism with the EIB because the projects supported by the NCFF will be projects that the EIB normally does not invest in, either because they are too small or because their perceived high risk is not compatible with the AAA rating of the bank. To overcome this, the facility includes a risk-sharing mechanism whereby the EU funds provide a guarantee to the EIB for first losses in case of project failure. The funds made available under the MAWP 2014-2017 will remain available for the financing period 2018-2020. The precise implementation mechanism was established in the delegation agreement between the Commission and the EIB signed on 18 December 2014, which also defines precise exclusion/selection criteria for projects, ensuring that the correct priorities are built in the selection process and that there is sufficient sectorial and geographical coverage.
The present MAWP extends the funds provided under the MAWP 2014-2017 to the MAWP 2018-2020. After the end of this operational period of the pilot phase, the facility will remain in place with a lighter structure to manage the portfolio and receive the repayments for operations.
The management of the financial instrument is carried out by the EIB. A Steering Committee reviews, on a regular basis, the progress on the implementation of the Financial Instrument. The Steering Committee comprises appointments made jointly by the Commission, including DG ENV, DG CLIMA, DG ECFIN, and the EIB, supported by a secretariat provided by EIB.
Monitoring of the financial instruments is carried out in line with the requirements laid down in the Financial Regulation (Article 140) and the Delegated Regulation (Article 225) and subsequently as interpreted in the Financial and Administrative Framework Agreement (FAFA) with EIB and the Delegation Agreement.
The EIB is responsible for monitoring the implementation of activities under the financial instrument and for producing performance and financial reports in accordance with a format, content and periodicity to be agreed, to include regular and ad hoc reports; site visits; audits. Performance Indicators for reporting from financial institutions to EIB will be used.

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Source: https://www.legislation.gov.uk/eudn/2018/210/annex/division/5/division/5.3/division/5.3.1/division/5.3.1.3 (the official version)
Page: https://openlegislation.uk/eu-decision-2018-210/annex/division-5/division-5.3/division-5.3.1/division-5.3.1.3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.