Project Details
Project
Encevo Group Green Finance Program Framework Second-Party Opinion (2025)
Client
Encevo Group
Project Type
Green Bond/Loan
Industry Group
Energy Services
Use of Proceeds
Renewable energy; Clean transport; Green buildings; Energy efficiency;
Location
Luxembourg
Evaluation Date
May 2025
Evaluation Summary
Encevo Group has developed the Encevo Group Green Finance Program Framework, dated May 2025, under which it intends to issue bonds, including public and private placements, Schuldscheindarlehen and Namensschuldverschreibungen, and obtain bank loans to finance projects in Luxembourg, Germany, Belgium, France and the Netherlands in four environmental categories. We have assessed the overall Sustainability Contribution of the Framework as Strong, based on the average Sustainability Contribution of the Framework’s four use of proceeds categories, weighted according to the percent allocation indicated by Encevo to Sustainalytics.
Encevo intends to finance environmental expenditures in Renewable Energy Projects, Energy Transmission, Distribution and Smart Grid Projects, Sustainable Real Estate and Clean Transportation Solutions. The Framework allows for equity investments in pure play companies that derive 90% or more of their total revenue from activities that meet the eligibility criteria in the Framework. Eligible renewable energy expenditures will focus on wind and solar power generation, as well as green hydrogen production.
Investments in energy transmission and distribution infrastructure and smart grid technologies will support the integration of renewables in Luxembourg’s and Germany’s electricity grids and follow a pro-rata approach to finance the share of expenditures that are relative to the share of renewable electricity in those grids. These investments will directly displace fossil fuels and strongly advance the low carbon transition.
Commercial real estate financed under the Framework will be fossil fuel-free for their energy use and achieve a level of certification that places them among the most energy-efficient buildings in their regions, making a strong contribution to decarbonizing the buildings sector.
For investments in transportation, Encevo intends to finance the installation of electric vehicle (EV) charging stations, including updates to associated grid systems, which strongly support the long-term objective of achieving zero emissions transportation.
We have assessed the Framework as Aligned with the Green Bond Principles 2021 and Green Loan Principles 2025.