- This is the first tranche of a total approved loan of €245 million to co-finance projects under the European Agricultural Fund for Rural Development.
- The financing will enable the Castilla y León regional government to co-finance projects to modernise farms, recover forest land and facilitate climate change mitigation and adaptation in rural areas.
- The agreement stands out for its contribution to climate action and environmental sustainability, support for agriculture and the bioeconomy, and promotion of cohesion, all of which are EIB Group strategic priorities.
The European Investment Bank (EIB) has signed a €74 million loan with the government of the Spanish region of Castilla y León (Junta de Castilla y León) to co-finance rural and agricultural and forestry sector investment under the European Agricultural Fund for Rural Development (EAFRD) operational plan for 2023-2027. This is the first tranche of total approved EIB financing of €245 million.
The EIB loan and Junta de Castilla y León co-financing will provide support for projects to modernise farms across the region, as well as for climate change adaptation and natural resource management. They will also make it easier to access financing for forest land planting and recovery projects and agroforestry land conversions. In addition, the loan will back climate change mitigation and adaptation investment in rural areas and the LEADER local development programme.
The agreement highlights the commitment of the European Investment Bank Group (EIB Group) to climate action and environmental sustainability, economic, social and territorial cohesion, and support for agriculture and the bioeconomy, three of the eight priorities set out in the Group’s Strategic Roadmap for 2024-2027. All of the operations will take place within the Castilla y León region.
This co-financing agreement under the European Agricultural Fund for Rural Development comes in addition to the agreement to support the dual green and digital transition, education and innovation in the region signed by the Junta de Castilla y León and the EIB in June 2024. The 2024 agreement was signed under the 2021-2027 operational plan of the European Regional Development Fund (ERDF) and other EU funds.
Background information
EIB
The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.
The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.
All projects financed by the EIB Group are in line with the Paris Agreement, as pledged in its Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.
In Spain, the EIB Group signed €12.3 billion of new financing for more than 100 high-impact projects in 2024. This financing is contributing to the country’s green and digital transition, economic growth, competitiveness and improved services for residents.
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