EIB loan to mitigate climate change and support EU presence in India
- Release date: 02 December 2008
- Reference: 2008-126-EN
“The financing operation we are signing today directly follows on from the Joint Statement issued at the EU-India summit held one year ago and supports the EU-India Strategic Partnership, which we wish to see developing further in the near future”, said EIB Vice-President Carlos Costa.
EXIM Bank will make available the proceeds of the loan to final beneficiaries carrying out investments that contribute to one of the following objectives: (a) climate change mitigation, through projects in the renewable energy and energy efficiency sectors, an objective that is expected to use up some two thirds of the loan, or (b) increasing the EU’s presence in India, through direct investment or transfers of technology and know-how from Europe, where one third of the loan is focused. Both objectives are set out in the EU mandate to lend in Asia and Latin America (ALA).
This is the second operation of the Bank in India, where the first operation dates back to 1993, a loan to Power Grid Corporation of India to upgrade the national electricity grid.
The European Investment Bank is the EU’s long-term financing institution promoting European objectives. Set up in 1958, the EIB operates in the 27 EU Member States and more than 130 other countries in Asia and Latin America, Central and Eastern Europe, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific. Lending operations outside the EU are part of EU cooperation policy with third countries.
Since 1993 the Bank has implemented four successive lending mandates for Asia and Latin America. Under the current mandate (ALA IV), covering the period 2007-2013, the EIB is authorised to lend up to EUR 3.8 billion for financing operations that contribute to climate change mitigation or support the EU’s presence in those regions through foreign direct investment, transfer of technology and know-how. The EUR 3.8 billion regional ceiling is broken down into indicative sub-ceilings of EUR 1 billion for Asia and EUR 2.8 billion for Latin America.