EIB and Commerzbank join forces for €1.2 billion energy investment to power Germany’s green transition

• First energy financing programme under new pan-European G4E Growth 4 Energy initiative
• New risk-sharing initiative will accelerate modernisation of local energy infrastructure and back investment by Stadtwerke municipal utilities
• Cooperation sets new benchmark for public–private climate action and supports delivery of EU and national energy goals

The European Investment Bank (EIB) and Commerzbank have agreed new cooperation to support €1.2 billion of new energy investment in Germany, designed to support local energy projects, address pressing investment needs in the sector and accelerate the country’s energy transition.

Nadia Calvino, European Investment Bank President said “By combining the EIB’s financial strength and expertise with Commerzbank’s deep roots in Germany’s cities and regions, we can support hundreds of local energy projects.  That means lower bills for households and businesses, supporting Germany’s green transition with a more resilient energy system.”

Bettina Orlopp, Commerzbank Chief Executive Officer said “This new partnership with the EIB demonstrates our shared commitment to Germany’s energy transition. By working together and sharing risks, we can empower regional utilities to realise vital projects they would otherwise struggle to finance. Our goal is to close the investment gap, support innovation, and help communities achieve secure, sustainable energy for decades to come.”

The new cooperation was formally agreed at Commerzbank headquarters in Frankfurt earlier today by EIB Vice President Nicola Beer and Bettina Orlopp, and witnessed by Nadia Calviño, European Investment Bank President.

Addressing Germany’s energy investment gap

Germany’s Stadtwerke municipal energy providers face a significant financing gap to modernise electricity and district heating networks essential for the Energiewende over the coming decades.

Only a fraction of the investment needed can be covered by the companies themselves or through government subsidies, making new financing instruments critical for success.

Joint efforts by local authorities, development banks, and private banks are widely seen as essential to bridge this gap and deliver on national and EU climate objectives.

How the new cooperation will work

The €1.2 billion financing programme is the first in Europe under the Growth for Energy (G4E) initiative, designed to support local investment to accelerate the energy transition.

This will back smaller municipal energy investment schemes by financing projects with a total investment of less than EUR 80 million.

Through this transaction, the EIB will cover up to 50% of Commerzbank’s risk exposure to loans for eligible energy projects at the municipal utility level, on a line-by-line basis.

This risk-sharing mechanism allows Commerzbank to allocate less capital and credit to each sub-loan, significantly increasing its lending capacity.

The result is a faster and broader channelling of financing to eligible projects in electricity generation, district heating, and grid expansion, helping to modernise infrastructure, lower energy prices, and achieve climate goals.

Strategic impact and sector focus

The G4E initiative specifically targets investments at the local and regional level, empowering municipal utilities to deliver key projects that will underpin the transition to clean energy and strengthen regional economic resilience.

By leveraging EIB’s guarantee, Commerzbank can expand access to long-term finance for a range of critical initiatives, including renewable electricity generation, grid reinforcement, and modern district heating systems.

The partnership is set to serve as a model for similar interventions across the EU in future years.

Over the last five years the European Investment Bank has provided more than EUR 5.5 billion for energy investment across Germany.

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 Climate Agreement, as pledged in our 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.   

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers.Approximately half of the EIB's financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. 

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