New 'Equator Principles' will extend environmental assessment to more project finance arrangements

16 May 2013 - Out-Law

A new version of the 'Equator Principles', which establish an environmental and social risk management framework for project financiers, will cover a wider range of funding arrangements. The third version of the Equator Principles (EP III) will take effect from 4 June, and should be applied to all new transactions from 1 January 2014. The new principles will apply to project-related corporate loans and short-term 'bridge' loans, in addition to project financing arrangements.  Environment and energy law expert Eluned Watson of Pinsent Masons, the law firm behind, said that the new principles would have "important implications, risks and opportunities" for both lenders and those seeking financial capital for projects. Read More.