Green Bonds

Green bonds are conventional debt instruments: they are bearer securities, generally listed on a regulated market and with the same level of recourse as the borrower's other senior creditors. Their special feature relates to the use of the funds raised; the proceeds of these loans are intended to be invested exclusively in so-called "green" projects, generating climate and/or other environmental benefits and also meeting social and societal criteria. ENGIE issued its first green bonds in April 2014, to support its development plan in renewable energies and energy efficiency. At the end of December 2024, ENGIE's total green bonds issuance reached €24.7 billion, making the Group one of the leading Corporate issuers on the green bonds market.

Information on the Group's various emissions is available in the Green Finance section.

Since 2017, the Group's Green Bonds comply with the terms of a referential framework (Green Bond Framework, updated and renamed Green Financing Framework in March 2020 and updated again in June 2023) that ENGIE has defined for all its green emissions.

Information on the Group's various emissions and their associated framework is available in the Green Finance section

The principles of the Green Financing Framework of June 2023, which are a continuation of those set out in the Green Financing Framework of March 2020, are as follows: 

• the funds raised are allocated to projects supporting the transition to a low-carbon economy directly linked to ENGIE’s strategy (“eligible green projects”). The eligible green projects must fall in a pre-defined category of projects and meet certain technical criteria. The eligibility criteria were determined by ENGIE and approved by Moody’s Investor Service. The second party opinion provided by Moody’s is available on ENGIE’s website at the following address: MIS SPO_Engie_Final_20230613.pdf
• until the funds raised are entirely allocated to eligible green projects (or after, in case of a substantial change in allocations), ENGIE is committed to providing information in its Universal Registration Document on the fund allocations made during the period concerned;
• the funds may be allocated to eligible green projects carried out after the issue of the green financing instrument, or used to refinance capex or opex on eligible green projects having taken place in the 24 months prior to the issue of the green financing instrument (vs. Green Financing Framework of March 2020: no time limit for capex, and having taken place in the 24 months prior to the issue of the green financing instrument for opex). The allocated amounts are calculated after deduction of any external funding already dedicated to these projects;
• the funds raised can be allocated for refinancing other green financing instruments previously issued by ENGIE. For each issue, ENGIE undertakes to allocate at least 50% of the funds raised to new spending (on eligible green projects) not allocated before (vs. Green Financing Framework of March 2020: 25%);
• as of December 31 of each year, the Group must hold cash (and cash equivalents) of an amount at least equal to the funds raised by the green bond, less amounts allocated to fund eligible green projects at that date.

A green bond committee (recently renamed "Green Financing Committee", aiming to encompass all green finance subjects in general) meets regularly to discuss market developments and projects likely to be financed by green bonds - the so-called eligible projects. It is jointly led by the ESG Department and the Corporate Finance Department and brings together the Procurement Department, the Global Care Department and the main GBU concerned.

The framework-eligible categories are likely to contribute to at least two of the United Nations Sustainable Development Goals ("SDGs"), namely goal 7. Affordable and clean energy and goal 13. Climate Action.

Calculating the contribution of eligible projects to avoided CO₂ emissions

ENGIE uses the concept of avoided emissions for its customers to enhance the decarbonizing nature of its products and services. The Group has developed an internal calculation methodology and a database of emissions factors which are regularly updated to bring them into line with international standards on the subject. 

For a given customer need (e.g. electricity supply), the emissions avoided by an ENGIE product or service correspond to the difference between the baseline emissions and the emissions of the ENGIE product/service. All emissions are calculated using an LCA (Life Cycle Assessment) approach. The baseline corresponds to the market average of solutions that the customer would have had access to in order to satisfy its needs, in the absence of ENGIE. For each ENGIE product generating avoided emissions, particular care is therefore taken in defining the baseline, in order to build a credible and consistent scenario over time of user behaviour by country. In particular, this baseline evolves over time to reflect the decarbonization of energy systems.  

Avoided emissions can therefore be calculated over the lifetime of an ENGIE asset, or on an annual basis. In the case of green bonds, avoided emissions are expressed on an annual basis. 

Emissions factors are a key element in calculating avoided emissions. ENGIE uses an internal database, maintained and developed by a dedicated R&D team. It is based on the external sources (IPPC guidelines, Ecoinvent, Enerdata for example).

For renewable electricity generation projects, the baseline corresponds to the average electricity consumption mix of the country in which the project is located, reflecting the average of technologies supplying the country's electricity. This baseline is compared with the lifecycle emissions of the ENGIE asset (solar, wind, hydro or thermal asset consuming decarbonized fuel).  

For energy storage projects, the decarbonizing character comes from the fact that the assets are charged with electricity when the network is experiencing low demand (and therefore when the electricity is low in carbon) and are discharged during peaks in demand in order to relieve the network, when the electricity on the network is high in carbon. The emissions avoided come from the difference in the grid's emission factor between the peak (baseline) and off-peak periods, taking into account losses at the storage asset. 

For countries where data was available, daily peak and off-peak emission factors averaged over the year were reconstructed using hourly data. For other countries, a simplified and conservative methodology was applied: the emissions of the ENGIE asset are based on the country's average electricity consumption mix, and the baseline (i.e. the network during peak periods) is modelled by a gas turbine.  

For renewable gas projects, the baseline corresponds to the gas mix of the country in which the project is located, including a penetration rate for renewable gases (biomethane and green hydrogen). 

To calculate the contribution of energy efficiency projects (including green buildings) to avoided emissions, ENGIE evaluates them by multiplying the energy savings brought by the project by the emissions of the energy mix of the country where the project is developed. Avoided emissions are calculated for one year of operation of the projects, considered in the normal operating phase.

For clean mobility projects, avoided emissions are calculated by comparing the level of emissions of ENGIE projects with a baseline scenario, in this case the use for the same distance travelled of vehicles representative of the average vehicle fleet in the country or region of the project, taking into account local decarbonization trends (electrification of part of the fleet, greener fuels).  

The categories of projects covered by the Green Financing Framework of March 2020 are described below:

• Renewable energy production (solar power, wind power, hydropower, bioenergy, low-carbon hydrogen, and/or geothermal Energy): 

Energy transition and the development of renewable energy on a global scale are a strategic priority for ENGIE. ENGIE is targeting a 58%-66% share of installed renewable energy capacity in its electricity production portfolio taken at 100% by 2030.With respect to renewable gases, the Group aims to reaching 100% of renewable gases in its energy mix in 2050, with the intermediate objective of having a production capacity of 10 TWh per year in Europe by 2030. In France, ENGIE BiOZ initiates, develops, finances, builds and operates biomethane production units, and is one of the market leaders.

Moreover, the Group aims to have a production capacity of hydrogen by electrolysis of 4 GW by 2035.

• Energy storage (electricity storage by pumped storage and batteries):

Energy storage solutions play a major role in the energy transition and are an essential link in the electricity networks. By storing energy produced at times when wind and solar sources are at their most productive, and / or when demand is lowest, they respond to the need to balance intermittent supply of renewable energy, which represents an increasing proportion of energy production. 

This is one of the reasons why ENGIE invests in pumped storage and battery storage.

• Transmission and distribution infrastructure:

In France, the Group is pursuing, through its networks business line, its efforts to develop the methanization of organic waste into renewable gases and to recover them through injection into the gas networks. This notably relates to investments to connect biomethane production units to ENGIE distribution and transmission networks.

• Energy efficiency (including district heating and cooling networks): 

The development of highly efficient energy infrastructures to support the transition to a low-carbon economy is another of the Group's strategic priorities.

• Clean mobility (including electric charging stations):

ENGIE is strongly committed vis-a-vis local authorities, motorway concession-holders and companies to rolling out and connecting a network of charging stations for electric vehicles that are available and competitive for the benefit of users. The Group has won several tenders in France and Belgium in this fast-growing market. 
The technical eligibility criteria for the different categories of the Green Financing Framework are available on ENGIE’s website: 20230613_Engie_Green_Framework (VDEF).pdf

Green bonds issued before June 2023 are covered by the Green Financing Framework of March 2020. The projects categories are described below:

• renewable energy production (hydropower, geothermal energy, wind, solar, bioenergy, low- carbon hydrogen, marine energy);
• energy storage (electricity storage by pumped storage and batteries);
• electricity transmission and distribution infrastructure;
• energy efficiency (including district heating network and cooling);
• carbon capture and storage;
• green buildings;
• clean transportation (including electric charging stations);
• sustainable management of living natural resources and land use.

The technical eligibility criteria for the different categories of the 2020 Green Financing Framework are available on ENGIE’s website

The main eligible green projects financed by the proceeds from the green bond issues carried out between September 2023 and June 2024 that meet the conditions of the above-mentioned Green Financing Framework are listed in the following table:

The projects (and the related capex) set out in the above table for a total of €3.14 billion are allocated to the green bond issued between September 2023 and June 2024, in proportions enabling the senior green bonds issued between September 2023 and March 2024 and the PNC6 hybrid bond to be fully allocated and the PNC9 hybrid bond issued in June 2024 to be partially allocated.

The funds allocated to eligible green projects in 2024 include €3 billion for investments made in 2024 (including €248.9 million in financial CAPEX for the acquisition of pure players, and €200.7 million in maintenance CAPEX), €107.7 million for investments made in 2023, and €20.4 million for investments made in 2022.

1) Renewable energy production

At end 2024, the Group’s installed centralized and decentralized electricity production capacity, taken at 100% for its renewables production businesses represents 43% of its installed capacity. 

During this year, ENGIE continued to expand its portfolio of renewable assets, mainly in wind and solar, by developing new projects, in particular in North America and Europe. It continued to invest in offshore wind via the joint venture, Ocean Winds. 

With respect to renewable gases, in addition to the numerous projects developed in France by the Group subsidiary ENGIE BiOZ, the Group also acquired several biomethane producers elsewhere in Europe (Belgium, the Netherlands and the UK) 

As a whole, a total amount of €2 billion was allocated to eligible green projects related to renewable energy production in 2024. When fully operational, these projects should contribute to avoiding at least 2.24 million metric tons of CO2 eq. of greenhouse gas emissions per year. 

2) Energy storage

The eligible green projects related to energy storage include:

• the development in the United States of battery storage units, either independent or co-located with a renewable energy production asset;
• the Dinorwig (1,728 MW) and Ffestiniog (360 MW) pumped storage facilities in the United Kingdom, owned and operated by First Hydro, which is 75% owned by ENGIE;
• the Coo pumped storage plant (Belgium), where investments are being made to expand its storage facilities in order to increase its installed power by 79 MW;
• power battery storage projects in Belgium, the Netherlands and the UK.

In 2024, a total amount of €765.4 million was allocated to Eligible Green Projects relating to energy storage. When fully operational, these projects should contribute to reducing greenhouse gas emissions by at least 0.03 million metric tons of CO2 eq. per year. 

3) Transmission and distribution networks

In 2024, a total amount of €128.3 million was allocated to eligible green projects in these areas. 

4) Energy Efficiency

In 2024, ENGIE continued to develop urban heating or cooling networks in Europe and mainly in France.

For this year, a total amount of €108.3 million was allocated to eligible green projects relating to energy efficiency. When fully operational, these projects should contribute to reducing greenhouse gas emissions by at least 0.36 million metric tons of CO2 eq. per year. 

5) Clean mobility

In 2024, a total amount of €147.5 million was allocated to eligible green projects relating to low-carbon mobility. 

IMPACT REPORTING

The impact reporting only takes into account the new projects displayed above. Reallocated projects following the buyback of previous issues are not taken into account in the impact reporting.

In full operation phase, the projects are expected to contribute to avoid emissions of 2.63 million tons of CO2 eq per year: 

1. for renewable projects: 2.24 million tons of CO2eq/year 
2. for storage projects: 0.03 million of CO2eq/year
3. for energy efficiency projects: 0.36 million tons of CO2eq/year

Breakdowns by technology and by region of the impacts in tons of CO2eq per year of the projects are presented below (at 100%).

The contributions to avoided emissions are presented in the following table using different weighting methods: 
a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex
b) according to the Group's ownership rate and regardless of the nature of the capex
c) considering only the development capex at 100%
d) according to the Group's ownership rate and taking only the development capex

The projects (and the related capex) set out in the above table for a total of €4.70 billion are allocated globally to the green bond issued between January and September 2023, in proportions enabling finalization of the allocation of the green bonds issued between January and July 2023 and allocating partially the green bond issued in September 2023.

Of the funds allocated to green eligible projects during 2023, 1.2 billion relate to investments made during 2022 and 3.5 billion to investments made in 2023.

1) Renewable Energy

At end 2023, the Group’s installed electricity production capacity centralized and decentralized, taken at 100% for its renewables production businesses, reached 41.4 GW in 2023, accounting for 41% of its installed capacity. 

In 2023, ENGIE continued to expand its portfolio of renewable assets, mainly in wind and solar by developing new projects in particular in North America, South America and Europe. Investments in offshore wind continued via the joint venture Ocean Winds. 

With respect to renewable gases, ENGIE acquired in September 2023, Ixora Energy Ltd, also a leader in biomethane production in the UK, with a production capacity of 160 GWh per year. 

As a whole, total amount of €2.6 billion was allocated to developed green eligible projects in the field of renewable energy. When fully operational, these projects should contribute to avoiding greenhouse gas emissions by a minimum of 2.36 million metric tons of CO₂ eq. per year.

2) Energy storage

The green eligible projects in question include:

• The acquisition of Broad Reach Power, a Houston-based company specializing in battery storage activities. The transaction involves 350 MW of operational assets, 880 MW of assets under construction with commissioning expected before the end of 2024, and 1.7 GW of projects at an advanced stage of development;
• the Dinorwig (1,728 MW) and Ffestiniog (360 MW) pumped storage facilities in the United Kingdom, owned and operated by First Hydro, which is 75% owned by ENGIE;
• the Coo pumped storage plant (Belgium) where investments are being made to expand its storage facilities in order to increase its installed power by 79 MW;
• the power battery storage project at Hazelwood in Australia.

In 2023, a total amount of €1.7 billion was allocated to green eligible projects developed in the field of energy storage. When fully operational, these projects should contribute to reducing greenhouse gas emissions by a minimum of 0.46 million metric tons of CO₂ eq. per year.

3) Transmission and distribution networks for renewable gases 

In 2023, a total amount of €155 million was allocated to green eligible projects developed in these fields. When fully operational, these projects should contribute to reducing greenhouse gas emissions by a minimum of 0.49 million metric tons of CO₂ eq. per year.

4) Energy Efficiency

In 2023, ENGIE continued to develop urban heating or cooling networks in Europe and mainly in France.

For this year, a total amount of €206 million was allocated to green eligible projects developed in the field of energy efficiency. When fully operational, these projects should contribute to reducing greenhouse gas emissions by a minimum of 0.34 million metric tons of CO₂ eq. per year.

5) Clean mobility 

In 2023, a total amount of €48 million was allocated to green eligible projects developed in the field of low-carbon mobility. When fully operational, these projects should contribute to reducing greenhouse gas emissions by a minimum of 0.02 million metric tons of CO₂ eq. per year.

IMPACT REPORTING

The impact reporting only takes into account the new projects displayed above. Reallocated projects following the buyback of previous issues are not taken into account in the impact reporting.

In full operation phase, the projects are expected to contribute to avoid emissions of 3.7 million tons of CO₂ eq per year: 

• for renewable projects: 2.36 million tons of CO₂eq/year 
• for storage projects: 0.46 million of CO₂eq/year
• for transmission and distribution networks for renewable gases: 0.49 million of CO₂eq/year
• for energy efficiency projects: 0.34 million tons of CO₂eq/year
• for clean mobility projects: 0.02 million tons of CO₂eq/year

The breakdowns by technology and by region of the impacts in tons of CO₂eq per year of the projects are presented below (at 100%).

The contributions to avoided emissions are presented in the following table using different weighting methods: 

a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex

b) according to the Group's ownership rate and regardless of the nature of the capex

c) considering only the development capex at 100%

d) according to the Group's ownership rate and taking only the development capex

Depending on the issue dates of the green bonds, they were allocated either under the March 2020 green financing framework or under the 13 June 2023 framework.

The main green eligible projects financed by the proceeds from the green bond issues carried out between January 2023 and September 2023 that meet the conditions of the above-mentioned Green Financing Framework are listed in the following table:

PROJECTS AND ELIGIBILITY CRITERIA

The categories of projects covered by the Green Financing Framework of March 2020 are described below:

• renewable energy production (hydropower, geothermal energy, wind, solar, bioenergy, low- carbon hydrogen, marine energy);
• energy storage (electricity storage by pumped storage and batteries);
• electricity transmission and distribution infrastructure;
• energy efficiency (including district heating network and cooling);
• carbon capture and storage;
• green buildings;
• clean transportation (including electric charging stations);
• sustainable management of living natural resources and land use.

The technical eligibility criteria for the different categories of the Green Financing Framework are available on ENGIE’s website

The Green Bond Committee was established in 2017. This Committee meets regularly to review market developments and Green Eligible Projects and to approve the allocation of the Green Bonds. It is jointly led by the CSR Department and the Finance Department and brings together the procurement Department, the Global Care Department and the main GBU concerned.

It has to be noted that a new Green Financing Framework has been published in June 2023. The 2022 allocation was done under the Green Financing Framework of March 2020.

NEW ALLOCATIONS

The main Green Eligible Projects financed by the Green Bond issues of October 2021 (ISIN: FR0014005ZP8 and FR0014005ZQ6) and of September 2022 (ISIN: FR001400A1H6) that meet the aforementioned conditions of the Green Financing Framework are listed in the table below:

The funds allocated to Green Eligible Projects throughout 2022 relate solely to investments made in the same year.
The retained allocations contribute to the funding or acquisition of Green Eligible Projects in:

• renewable energy (wind power, solar power, bioenergy, low carbon hydrogen, and / or geothermal energy);
• energy storage;
• energy efficiency.

1)    Renewable Energy

Energy transition and the development of renewable energy on a global scale are a strategic priority for ENGIE. In 2021, the Group set itself the target of stepping up its investments in renewables to enable it to install 3 GW of additional capacity in 2021, then 4 GW per year on average from 2022 to 2025, and finally 6 GW per year from 2026. The Group’s installed electricity production capacity, taken at 100% for its renewables production businesses, reached 38 GW in 2022, accounting for 38% of its installed capacity. ENGIE is targeting a 58% share of renewable energy installed capacity in its electricity production portfolio taken at 100% by 2030. In 2022, ENGIE continued to expand its portfolio of renewable assets, mainly in wind and solar by developing new projects in particular in North America, South America and Europe. At the beginning of May 2022, the Group and its partner Crédit Agricole Assurances finalized the acquisition of Eolia, a major Renewables player in Spain, adding 0.9 GW of assets in operation and 1.2 GW of additional projects to ENGIE’s platform in Iberia. Investments in offshore wind continued via the joint venture Ocean Winds. In France, the Group, through ENGIE BIOZ, and its infrastructure business lines, also pursued its efforts to develop the sector of methanization of waste into renewable gases and to recover them through injection into the natural gas transmission and distribution network.
These low-carbon resources play an essential role in energy transition and the fight against climate change.
During 2022, a total of €1.50 billion had been allocated to Green Eligible Projects in the field of renewable energy in respect of the Green Bonds of October 2021 (8 year and 15 year tranches) and September 2022 (7 year tranche).

2)    Energy storage

Energy storage solutions play a major role in the energy transition and are an essential link in the electricity networks.
By storing energy produced at times when wind and solar sources are at their most productive, and / or when demand is lowest, they respond to the need to balance intermittent supplies of renewable energy, which make up an increasing proportion of energy production. ENGIE invests in pumped storage and battery storage for this reason.
The Green Eligible Projects in question include:

• the Dinorwig (1,728 MW) and Ffestiniog (360 MW) pumped storage facilities in the United Kingdom, owned and operated by First Hydro, which is 75% owned by ENGIE;
• the Coo pumped storage plant (Belgium) where investments are being made to expand its storage facilities in order to increase its installed power by 79 MW;
• the power battery storage project at Hazelwood in Australia;
• the acquisition of a pipeline of development projects in solar energy and paired and stand-alone battery storage from Belltown Power U.S. in the United States (Monarch transaction). The transaction covers 33 projects, including 0.7 GW of paired storage and 2.6 GW of stand-alone battery storage.

During 2022, a total amount of €192.6 million was allocated to Green Eligible Projects developed in the field of energy storage in respect of the Green Bonds of October 2021 (8 year and 15 year tranches) and September 2022 (7 year tranche).

3)    Energy Efficiency

Another strategic focus of the Group is the development of high efficiency energy networks supporting the transition to a low-carbon economy. In 2022, ENGIE continued to develop urban heating or cooling networks in Europe and mainly in France.
During 2022, a total of €89.3 million had been allocated to Green Eligible Projects in the field of energy efficiency in respect of the Green Bonds of October 2021 (8 year and 15 year tranches) and September 2022 (7 year tranche).

IMPACT REPORTING

The impact reporting only takes into account the new projects allocated in 2022. Reallocated projects following the buyback of previous issues are not taken into account in the impact reporting.
In the full operation phase, the projects are expected to contribute to avoid emissions of 3.8 million tons of CO2eq per year:

(i)    for renewable projects, 3.35 million tons of CO2eq/year,
(ii)    for energy efficiency projects, 0.45 million tons of CO2eq/year
(iii)    for storage projects, 0.016 million of CO2eq/year.

The breakdowns by technology and by region of the impacts in tons of CO2 eq per year of the projects are presented below (at 100%).

METHODOLOGY

Renewable Energy

When fully operational, renewable energy projects should contribute to avoiding greenhouse gas emissions by a minimum of 3.35 million metric tons of CO2 eq. per year.
The methodology for calculating avoided emissions is based on a comparison of the Life-Cycle Analysis (LCA) emission value of the energy generation technology being used by the project and the one of the energy mix of the country in question. ENGIE estimates the contribution to avoided emissions resulting from Green Bond-funded projects by multiplying the difference between the two LCA values stated with the plant’s capacity and the technology’s average load factor. The contribution to avoided emissions are calculated for one year of operation of the projects, considered in a full operational mode and taken at 100% regardless of the Group’s ownership rate of these projects.
Per-country reference data for the average operating rates of technologies used and the average CO2 emissions rates per kWh of the generation mix were drawn from data from Enerdata. The technologies’ LCA data is derived from work performed by the Intergovernmental Panel on Climate Change (IPCC). For the projects involving bioenergy and injection in the network, the quantities of biogas produced and injected into the network are regarded as avoiding an equivalent quantity of energy of the country mix.

Energy storage

When fully operational, energy storage projects should contribute to reducing greenhouse gas emissions by a minimum of 0.016 million metric tons of CO2 eq. per year. The methodology for calculating the contribution to avoided emissions for storage projects is based on a comparison of the emission factors of the energy production technique implemented by the project and the reference scenario. In the case of pumped storage, the gas turbine is taken as the reference. ENGIE estimates the contribution to avoided emissions of Green Bond-funded projects by multiplying the difference between the above emission factors by the average production of the facilities. The contribution to avoided emissions are calculated for one year of operation of the projects, considered in a full operational mode and taken at 100% regardless of the Group’s ownership rate of these projects.

Energy Efficiency

When fully operational, these projects should contribute to reducing greenhouse gas emissions by a minimum of 0.45 million metric tons of CO2 eq. per year. The calculation of avoided emissions is done by comparing the level of emissions of ENGIE projects with a reference scenario, in this case the use of an individual gas heating system when it comes to a district heating network, or individual air conditioning in the case of a district cooling network. The contributions to avoided emissions are calculated for one year of operation of the projects, considered in a fully operational mode and taken at 100% regardless of the Group’s ownership rate of these projects.

The contributions to avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.

In 2021, ENGIE continued to develop urban heating or cooling networks in Europe and mainly in France. In the United States, ENGIE has entered into a partnership with the University of Georgetown (Washington DC) for the management of energy infrastructure and campus techniques with ambitious targets in terms of sustainable development and energy savings. For the entire duration of the agreement, ENGIE will be responsible for improving, operating and maintaining electrical, heating, cooling and water distribution systems, with a target of reducing energy intensity by 35% by 2030

Impact Reporting

The impact reporting only takes into account the new projects presented in the table above. Reallocated projects following the buyback of previous issues are not taken into account in the impact reporting.
In the full operation phase, the projects are expected to contribute to avoid emissions of at least 4.54 million tons of CO2eq per year: (i) for renewable projects, a minimum of 4.12 million tons of CO2eq/year, (ii) for energy efficiency projects, 0.38 million tons of CO2eq/year, and (iii) for storage projects, 0.04 million of CO2eq/year.

The breakdowns by technology and by region of the impacts in tons of CO2 eq per year of the projects financed by the Green Bond of March, November 2020 and July 2021 are presented below (at 100%)

The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.

The main Eligible Projects that were financed in 2020 with the proceeds of the June and October 2019 Green Bond issues are presented in the following table. 

Description of the projects

The main projects concern the development of solar and wind farms in Europe, South and North America (Website of wind and solar projects in the US). The group also acquired 2 GW of renewable capacity in operation through the acquisition in Portugal of hydraulic dams owned by EDP (Press release)  as well as wind parks of Renvico (Press release) The  energy efficiency  allocations relate to projects related to the development of heat and smart metering networks in France, as well as the extension of the pump storage stations in England (Pump storage refurbishment)

Impact Reporting 

In the full operation phase, the projects are expected to contribute to avoid emissions of at least 5.26 million tons of CO2eq per year: (i) for renewable projects, a minimum of 5.05 million tons of CO2eq/year, (ii) for energy efficiency projects, 0.21 million tons of CO2eq/year, and (iii) for clean transportation projects, around half thousand ton of CO2eq/year.

The breakdowns by technology and by region of the impacts in tons of CO2 eq per year of the projects financed by the Green Bond of June and October 2019 are presented below (at 100%)

The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.

The main Eligible Projects that were financed in 2019 with the proceeds of the January 2019 Green Bond issue are presented in the following table. 

Description of the projects

The main new projects concern the development of solar and wind farms in France and North America. The Group has also acquired Vol-V Biomass thus becoming the leading biomethane production in France with the aim of intensifying the development of this sector in France. The main project allocated in terms of energy efficiency is the acquisition of CertiNergy which reinforces the Group's position on energy saving certificates to accelerate the energy transition of companies and communities. In terms of mobility, the green bond of January 2019 has enabled ENGIE to finance various projects presented in the following link (Clean Mobility) and in particular the acquisition of Powerlines, which enables it to become a major player in the electrification of rail networks in Europe

Impact Reporting 

In the full operation phase, the projects are expected to contribute to avoid emissions of at least 3.43 million tons of CO₂eq per year: (i) for renewable projects, a minimum of 3.02 million tons of CO₂eq/year, (ii) for mobility projects, 0.04 million tons of CO₂eq/year, and (iii) for energy efficiency projects, a minimum of 0.37 million tons of CO2eq/year.

The breakdowns by technology and by region of the impacts in tons of CO₂ eq per year of the projects financed by the Green Bond of January 2019 are presented below (at 100%).

The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.

ENGIE favors the first method because of its major industrial role in the development of these projects, which leads it not to modify its impact reporting in the event of a sale. However, the contribution according to the three alternative methods is presented at the request of certain investors. 

The main Eligible Projects which were financed in 2019 by the product of the Green Bond issue of January 2018 are presented in the following table.

Supplemented by a part allocated in 2018

Description of projects

The main new projects concern the development of solar and wind farms on all the continents where the Group is present. In addition to the countries where the Group has a platform for the development of renewables (France, Belgium, USA, Mexico) ENGIE inaugurated in 2019 the largest wind farm in Egypt, has also strengthened its presence in Spain and announced the commissioning of the Kathu thermodynamic solar power plant, one of the largest renewable energy projects in South Africa. Financing also contributed to the financing of the first floating wind farm in continental Europe and the acquisition of Mobisol which enables Engie to become the leader in the off-grid solar market. 

Impact reporting

When fully operational, renewable projects should contribute to avoid emitting greenhouse gases of at least 3.30 million tons of CO₂eq / year, while energy efficiency projects should contribute to reduce greenhouse gas emissions of at least 0.09 million tons of CO₂eq / year, or a total of 3.39 million tons of CO₂eq per year.

The breakdowns by technology and by region of impacts in tons of CO₂ eq / year of the projects funded by the Green Bond of January 2018 are presented below.

The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.

ENGIE favors the first method because of its major industrial role in the development of these projects, which leads it not to modify its impact reporting in the event of a sale. However, the contribution according to the three alternative methods is presented at the request of certain investors.

The total funds allocated to Eligible Projects in 2018 amount to 170 million euros for the year 2017 and 1204 million euros for the year 2018 respectively. These amounts have made it possible to allocate 1250 million euros, i.e. the totality of the Green Bond issued in September 2017. The latter contributed to the financing or acquisition of Eligible Projects in the fields of renewable energy and energy efficiency.

The main projects are presented in the table below, which shows the country in which each project is located, the associated technology and the capex allocated for each project.

Description of projects

Description of projects:

Solar and wind energy in US

ENGIE considerably expanded its wind development portfolio in the U.S by acquiring Infinity Renewables, a leading developer of utility-scale wind projects in the United States. The acquisition includes more than 8,000 MW of projects in various stages of development. In end of 2018 ENGIE announced the start of construction of the 276 MW Solomon Forks Wind Project and the 196 MW East Fork Wind Project in northwest Kansas.

Solar and wind energy projects in Europe

ENGIE confirmed in 2018 its number one position in the solar and wind energy sectors in France with the acquisition of the LANGA group. Founded in 2008, the LANGA group, based in Brittany, is one of the most active independent producers of renewable energy, simultaneously present in solar, wind, biogas and biomass. The group is developing 1.3 GW of projects due to be completed by 2022. 

Solar and wind energy projects in Africa

ENGIE announced on 30 January 2019 the commercial operation of the 100 MW Kathu Solar Park in South Africa. This state of the art plant is a greenfield Concentrated Solar Power (CSP) project with parabolic trough technology and equipped with a molten salt storage system that allows for 4.5 hours of thermal energy storage to provide reliable electricity in the absence of solar radiation and during peak demand. Kathu is the first CSP development for ENGIE.

Transmission project in Latin America

Transmisora Eléctrica del Norte (TEN), a subsidiary of ENGIE (50%) and Red Eléctrica Internacional (50%) put into service the first electricity interconnection between Mejillones (Antofagasta Region) and Cardones (Atacama Region) of 500 kilovolts of voltage and 600 kilometers in length. The interconnection between the SING (Norte Grande Interconnected System) and the SIC (Central Interconnected System) networks will create a single, more robust, competitive system which will facilitate the entry of renewable projects. 

Energy efficiency

ENGIE aimed at being at the forefront of the energy transition with the acquisition in 2018 a majority stake of Electro Power Systems (EPS), a pioneer in hybrid solution storages. EPS is a company specialised in energy storage solutions and microgrids that enable intermittent renewable sources to be transformed into a stable power source. With the transaction, both companies aim at further accelerating their vision to be at the forefront of the energy transition, with special focus on decentralised energy solutions.

Clean transportation

ENGIE acquired EV-Box a leading electric charging player. Thanks to this combination, ENGIE intends to be a major global player in this space facilitating the development of clean mobility for its customers, while providing the essential energy solutions to manage the energy needs of electric vehicle charging for customer sites and the electricity network.

Impact Reporting

In the full operating phase, renewable projects (at 100%) should contribute to avoid greenhouse gas emissions of at least 3.01 million tons of CO₂eq/year while energy efficiency projects (at 100%) should contribute to reduce greenhouse gas emissions of at least 0.15 million tons of CO₂eq/year, that is, a total of 3.16 million tons of CO2eq per year.

Technology and regional breakdowns of the impacts in tons of CO₂ eq of the projects financed by the Green Bond of September 2017 are set out below (at 100%).

The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.

ENGIE favors the first method because of its major industrial role in the development of these projects, which leads it not to modify its impact reporting in the event of a sale. However, the contribution according to the three alternative methods is presented at the request of certain investors.

The total funds allocated under this issue to Eligible Projects developed during the years 2016 and 2017 amount to 81 million euros and 1419 million euros respectively. These amounts make it possible to allocate €1,500 million, i.e. the totality of the Green Bond issued in March 2017. The March 2017 Green Bond contributed to the financing or acquisition of Eligible Projects in the fields of renewable energy and energy efficiency.

Description of projects 

Solar and wind projects in France

ENGIE, a major player in renewable energy production in France, is committed to the energy transition and the development of renewable projects The allocated capex related to the wind and solar projects of its solely owned subsidiary ENGIE Green, resulting from the merger of Futures Énergies and Maia Eolis in 2016 and LCV - La Compagnie du Vent - in 2017 and its subsidiary CNR (Compagnie Nationale du Rhône - 49.9%) through its subsidiary CN'Air (hydroelectricity, onshore wind and solar photovoltaic) for a total installed capacity of 142 MW and 36 MW respectively for wind and solar power. Also worth noting are the two offshore wind projects in Dieppe/Le Tréport, and l’Ile d’Yeu/Noirmoutier (2 x 500 MW in capacity, projects 47% owned by ENGIE). The 2016 financial capex relating to the buyout of minority interests in Solaire Direct has also been included.

Wind (Campo Largo) and solar (Floresta and Paracatu) projects in Brazil

ENGIE, which is the main private electricity producer in Brazil (about 6% of the country's installed capacity) is continuing its development through new renewable energy production projects. Thus renewable energy represents 90% of its installed capacity in Brazil. Capex projects currently under construction and financed by the Green Bond are the Campo Largo onshore wind farm (327 MW), and the Floresta (86 MW) and Paracatu (132 MW) solar farms.

Offshore project (UK)

In September 2011, the Group won a contract with the Portuguese company EDP Renováveis to develop a 950 MW offshore wind farm in the United Kingdom. ENGIE stake: 23%.

Onshore wind project in Australia

ENGIE began pre-construction work in 2017 on the 119 MW Willogoleche wind farm near Hallett in the Mid North region of South Australia. ENGIE's interest in this project is 72%.

Biomass Project

Two cogeneration projects to supply heating networks and operating in biomass co-combustion were integrated into the Green Bond of March 2017 (Mâcon in France - 100% ENGIE, and Sisslerfeld in Switzerland - 60% ENGIE) for an injected biomass estimated at 230 GWh.

Tabreed (United Arab Emirates)

In July 2017, ENGIE bought a 40 percent stake in Tabreed (National Central Cooling Company PJSC), which provides innovative cooling solutions for buildings and other infrastructure to the United Arab Emirates and the member countries of the Gulf Cooperation Council (GCC). The company delivers the equivalent of over 1 million tons of cooling to its clients across 71 district cooling plants located throughout the region, replacing individual refrigeration systems with 40% lower efficiency.

Ohio State University Project (USA)

In April 2017, ENGIE (50%) and Axium Infrastructure US (50%) won a 50-year concession to sustainably manage Ohio State University’s energy infrastructure. The contract pertains to the operation and optimization of the university’s energy production and distribution facilities, and energy efficiency services to reduce energy consumption by 25% within the first ten years of the contract.

Keepmoat (UK)

In March 2017, ENGIE acquired Keepmoat Regeneration, the UK’s leading provider of regeneration services, improving buildings, places and communities through refurbishment and upgrade. Keepmoat has extensive capabilities in creating zero carbon new homes, retrofitting high-rise residential accommodation and supporting the cost reduction and energy efficiency targets of community regeneration projects, such as insulation and heating solutions to on-site generation and energy consultation services. Energy savings were estimated using statistical data based on installed technology. Most of the savings were generated from heat insulation with an estimated efficiency of 20 percent.

Green Charge Project (USA)

In 2016, ENGIE acquired an 80 percent stake in California-based battery power storage company Green Charge Networks (Green Charge). It uses advanced patented software algorithms and analytics to optimize battery systems at commercial & industrial (C&I) and public sector customer sites in the United States. These systems generate financial and environmental benefits by storing energy from an efficient system (generally combined cycles) and avoiding non-efficient peak systems considered 40% less energy efficient.

Project Smart Grid (Gazpar - France)

Since January 2016, more than 160,000 smart meters have been installed in 24 pioneering municipalities. The general roll-out of these gas meters began in May 2017 and will gradually be extended to all French metropolitan regions, benefiting approximately 11 million customers. The smart gas meter allows customers to monitor their consumption to better control it. A technical and economic study carried out under the supervision of the French Energy Regulation Authority ("CRE") based on the GRDF scope, estimated the total possible gains in terms of energy savings following the installation of these smart meters at 1.5%.

Impact Reporting

For CDM (Clean Development Mechanism) projects registered and approved by the United Nations, the results of the calculations are based on the underlying methodologies

Reduced and avoided emissions of the March 2017 green bond

In the full operating phase, renewable projects (at 100%) should contribute to avoid greenhouse gas emissions of at least 2.2 million tons of CO₂eq/year while energy efficiency projects (at 100%) should contribute to reduce greenhouse gas emissions of at least 1.1 million tons of CO₂eq/year, that is, a total of 3.3 million tons of CO2eq per year.

Technology and regional breakdowns of the impacts in tons of CO₂ eq /year of the projects financed by the Green Bond of March 2017 are set out below (at 100%).

The contributions to reduced or avoided emissions are presented in the following table using different weighting methods: a) at 100% regardless of the Group’s ownership rate and regardless of the nature of the capex (financial or development), b) according to the Group's ownership rate and regardless of the nature of the capex (financial or development), c) considering only the development capex regardless of the Group’s ownership rate (at 100%), and finally d) according to the Group's ownership rate and taking only the development capex.

ENGIE favors the first method because of its major industrial role in the development of these projects, which leads it not to modify its impact reporting in the event of a sale. However, the contribution according to the three alternative methods is presented at the request of certain investors.