The European Investment Bank is the EU’s climate bank. Our climate strategy defines our mission: to play a leading role in mobilising the finance needed to keep global warming below 2˚C, aiming for 1.5˚C.
Since 2012, the EIB has provided €170 billion of finance supporting over €600 billion of investment in projects that reduce emissions, help countries adapt to the impacts of climate change and contribute to achieving environmental sustainability goals. This makes the EIB one of the world’s largest multilateral providers of finance for projects supporting these objectives.
To reach the 1.5°C target, under the Paris Agreement, we must emit less than 580 gigatonnes of CO2. That’s our carbon budget – forever. At the current rate of about 37 gigatonnes per year, we will have exhausted this by 2032. We must decarbonise quickly, and the next decade will be critical. We also need urgent action on the planet’s biodiversity loss, ocean pollution and ecosystem collapses. The whole financial system must make the connection between climate change, environmental sustainability, and their impact on people.
The Roadmap signals the urgency with which the EIB Group views the climate and environment crisis. It represents our commitment, as the EU’s climate bank, to make the EU Green Deal a success, help Europe become the first carbon-neutral continent by 2050, and support the achievement of the UN Sustainable Development Goals.
In 2019, the European Investment Bank exceeded its climate action target for the tenth year running, providing €19.3 billion to fight climate change. That’s 31% of all our financing.
It is essential to retrain workers and attract new jobs to these areas. The EIB is working hard to ensure that its financing contributes to a just transition for those regions or countries most affected, so that no one is left behind in the fight against climate change.
While we estimate that the green transition would create at least 500 000 additional jobs in Europe by 2050, we must pay special attention to those areas where coal mines and other CO₂-intensive production processes have historically been a major source of employment and economic activity.
In the spotlight
Climate action in everything we finance
In every project we support, climate change impacts are carefully considered. At the appraisal stage, we screen projects by analysing the following:
Adjusted economic and financial rates of return
When appraising the economic case for a project resulting in a significant change of greenhouse gas emissions (GHG) we incorporate an economic cost of carbon.
We are phasing out our support for energy projects reliant on unabated fossil fuels. These projects include the production of oil and natural gas, natural gas infrastructure and power generation technologies resulting in greenhouse gas emissions above 250g CO2 per kWh of electricity generated. Find out how the EIB is supporting the energy transformation in our Energy Lending Policy, adopted on 14 November 2019.
Climate change risk and vulnerability
For projects, sectors and areas particularly vulnerable to climate change impacts, we require the promoter to consider climate risks and to incorporate adaptation measures into project design and operation. We are rolling out a climate risk management system as part of our climate strategy implementation.
The EIB Institute works closely with the academic community to advance research on climate change and sustainability. As a result of this collaboration, we have sponsored the creation of two Climate Chair positions with the European University Institute and Sciences Po to promote research in the field.
We back projects that protect the environment our children will live in while we innovate to make their future more prosperous. In line with our responsible approach to investment, environmental concerns are reflected in all our projects.
In 2019, the EIB financed €16.52 billion in projects enhancing environmental protection.