1. 07-10-2010 Green investments and green finance in the Netherlands Huub Keulen,Rabo Groen Bank BV Rabo Groen Bank B.V.

2. Contents Rabobank and Corporate Social Responsibility (CSR) Green investments Green finance Bottlenecks/opportunities Conclusion Rabo Groen Bank B.V.

3. Rabobank en CSR (1) Rabo Groen Bank B.V. Sustainability is moving to the core of the policy of an increasing number of companies. These days good companies make money with Green. It is in our gens. _ Piet Moerland, Chairman Management Board Rabobank Group

4. Rabobank and CSR (2) Together you achieve more then alone Linked with the environment of the customers Sustainable development of the society: triple P People, Planet, Profit Rabo Groen Bank B.V.

5. Rabobank and CSR(3) Rabo Groen Bank B.V.

6. Green Funds Scheme 1995: introduction Green Investment Scheme Dutch Govt. Goal: encouraging green initiatives Means: tax incentive private individual investors. Cheap green finance for acknowledged green projects based on green certificate of the government Rabobank market leader green investments: invested capital 31-12-2009: 4 billion Rabo Groen Bank B.V.

7. Public-private cooperation Consumers BanksCompanies Government Rabo Groen Bank B.V.

8. Parties involved Government: Green scheme with tax incentive for individual investors Consumer: green investment yields interest from green bank & tax incentive from government Bank: - acquiring money against lower funding costs - application green certificate for projects with government - supplying low interest loans for certified green projects Government: assesment of application green certificate Companies: low interest loans for green projects Purpose Green Scheme: encouraging green initiatives Extra benefits: involvement banks and individual investors (civilians) with green projects (awareness) Rabo Groen Bank B.V.

9. Period 5 yearMarket rateRabo Green Bond Interest4,0 %2,0 % Wealth tax1,2 %n/a Subtotal2,8 %2,0 % Discount income taxn/a.1,3 % Net result2,8 %3,3 % 9 Tax incentive Rabo Groen Bank B.V.

10. Benefits Rabo Green Bonds Tax incentive (2,5% max. 50,000 per individual) Fixed interest Guarantee on principal amount Certainty But also: Supporting the environment and being socially responsible = feeling good Rabo Groen Bank B.V.

11. What does Rabo Green Bank do with this green money? Rabo Groen Bank B.V.

12. Rabo Green finance in mio On 31.12.2009 total 3.17 billion Rabo Groen Bank B.V.

13. Green finance process (2 months) Projects from Rabobank network Application for green certificate by Rabo Green Bank Assesment of application by appointed evaluation organizations (SenterNovem & Dienst Regelingen) Issue green certificate by government Loan proposal Rabo Green Bank Issue green loan Rabo Green Bank Rabo Groen Bank B.V.

14. General project requirements Project situated in: - the Netherlands - Netherlands Antilles - non-OECD country (Asia, Africa, South America) Project provides significant and immediate environmental benefit New project (application green certificate within 6 months after start up) Minimum 25,000 Max. 35 million Amount green certificate based on investment in fixed assets Prove of actual investments: contract supplier/contractor Different requirements depending on type of project (about 50 designated project categories) Rabo Groen Bank B.V.

15. Green themes Forestry and nature Organic Farming Sustainable agriculture (greenhouses, sustainable dairy farms) Recovery en reuse (innovative recycling) Renewable energy (wind, solar, water, geothermal) Energy saving Sustainable building (new & renovation; houses and officebuildings) Sustainable mobility (transport) Sustainable water chains (water treatment, water collection & retention) Other innovative projects Rabo Groen Bank B.V. 15

16. Green Finance Amount loan = amount green certificate Term green loan = term green certificate (mostly 10 years) interest reduction over same period Repayment = economic depreciation Regular loan assesment by Rabobank (project has to be cost-effective) Rabo Groen Bank B.V.

17. Incentive Green loan 1 – 1,5% average interest reduction Compliment for the entrepeneur Rabo Groen Bank B.V. The Green Funds Scheme is unique in the world. Many sustainable project have been stimulated through this scheme. Continuity is more important than flexibility, because banks have long term commitments through green finance. Just van Lidth de Jeude, coördinator Technologie ministerie van VROM

18. Is the Dutch Green Funds Scheme succesful? Conclusion: Multiplier effect: Dutch government, by not-receiving income tax, encourages almost 6 billion green investments by companies Rabo Groen Bank B.V. Total Netherlands (7 greenbanks) Rabobank Market share 54% Green investments: 7.36 billion 4 billion Investors233,00092,000 Green finance: 5.86 billion 3.17 billion Projects3,9002,300

19. Cases # Rabo Groen Bank B.V.

20. Threads & opportunities Threads Economic crisis Windenergy: not in my back yard Low return in nature and forestry Assesment of return on investment by the government Bank demands: high Government demands: low Succes green scheme upgrade requirements by the government Opportunities Grown awareness Green Scheme Climate targets government Subsidies Dutch government Extension Green Scheme Know-how local accountmanagers Rabobank Rabo Groen Bank B.V.

21. Conclusion Profit for nature & environment Profit for the individual investor Profit for green projects Profit for the bank www.rabobank.com www.annualreportsrabobank.com Rabo Groen Bank B.V.

22. Everything should fit. A Green Label Warehouse with its advantages is a good example. Nic de Jong, Bramani Rabo Groen Bank B.V.

23. 23 We contribute to a clean city and a sustainable Amsterdam. Roelof Kruize, algemeen directeur Afval Energie Bedrijf Rabo Groen Bank B.V.

24. 24 Rabo Groen Bank B.V. Raymon van den Ende, director Yard Capital Wind in the Netherlands: one of the most promising sources of energy.

25. 25 Rabo Groen Bank B.V. The cow pays back twice for caring Gerard Litjens, Cheese farm:

26. 26 Rabo Groen Bank B.V. Organic products are simply healthier and tastier

27. 27 Rabo Groen Bank B.V. Anne-Marie Rakhorst, director Search Sustainable construction is a must

28. 28 Rabo Groen Bank B.V. John van der Hulst, adjunct- director WoonInvest Where possible, we renovate and build sustainable

29. 29 Rabo Groen Bank B.V. Gerard Groenen, Kalverhouderij Groenen- Wientjens It was great for years. Hardly no extra heating was needed.

30. 30 Rabo Groen Bank B.V. Thom de Ruiter, co-owner of Econvert Climate & Energy: It is still difficult, but there are opportunities.