The European Investment Bank is one of the world’s main financiers of climate action.
The decade 2021-2030 is critical to address our planet's climate and environment emergency. To achieve this, trillions of investment are required. We must:
limit global warming to 1.5°C above pre-industrial levels by the end of this century,
The European Union is at the forefront of the global fight against greenhouse gas (GHG) emissions and to adapt to a changing climate. It plays a leading role in implementing the Paris Agreement. The EIB Group places sustainability at the heart of these EU initiatives.
We must work together to reduce greenhouse gases and to improve the resilience to climate change impacts. Fighting climate change and preparing cities for the changes happening right now will help everyone in the world.
“We all need to work together to mitigate greenhouse gases where they are created and to adapt infrastructure where it is most vulnerable to climate change” Werner Hoyer, President of the EIB
“We have learned some lessons from the previous crisis — act quickly, act with volume, and do whatever you can to speed up disbursements. We believe that, everywhere, the recovery will have to be green” Ambroise Fayolle, Vice-President of the EIB
In 2020, the European Investment Bank provided €24.2 billion to fight climate change. That’s 37% of all our financing. The EIB’s environmental sustainability finance accounted for approximately €1.8 billion, or 3% of total financing, for the same year.
Since 2012, the EIB has provided €197 billion of finance*supporting over €670 billion of investment in projects that protect the environment, reduce emissions and help countries adapt to the impacts of climate change.
* €171 billion focused on climate action and €26 billion dedicated to environmental protection
Climate Bank Roadmap
In 2019 the EIB Board of Directors approved a new set of ambitious targets for climate action and environmental sustainability. Here are three key elements:
The EIB Group will support €1 trillion of investments in climate action and environmental sustainability in the critical decade from 2021 to 2030;
The EIB will gradually increase the share of its financing dedicated to climate action and environmental sustainability to reach 50% of its operations in 2025;
The EIB Group will align all its financing activities with the principles and goals of the Paris agreement by the end of 2020.
A plan for the future of the planet
The EIB Group Climate Bank Roadmap 2021-2025 will guide our ambition. It is the result of various rounds of engagement with civil society and other stakeholders.
The Roadmap outlines our bold ambitions for climate finance to back the European Green Deal and make Europe carbon-neutral. It maps the next stages in the journey to sustainable investment and provides a framework to counter climate change and protect the environment during the critical decade ahead.
Read the blog article about our Climate Bank Roadmap, outlining our bold ambitions for climate finance to back the European Green Deal and make Europe carbon-neutral
Implementing our climate ambition in Europe and beyond
It is essential to retrain workers and create new jobs in areas where coal mines and CO₂-intensive activities have historically been a major source of employment and economic activity. Although we expect the green transition to create around 500 000 jobs in Europe by 2050, we are working hard to ensure that our 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.
In 2015, the EIB committed to increase its climate lending to 35% of its total investment in developing countries by 2020. We exceeded this target in 2019, investing a total of €3 billion, 43% of the total financing to developing countries, including those most exposed to climate-related disasters. The EIB Group applies the same environmental and social standards to evaluate projects inside and outside the European Union.
Nature and biodiversity are essential for life. Approximately half of the world’s GDP is generated by natural resources. Biodiversity loss and the climate crisis go hand in hand.
We support EU policy for biodiversity preservation by ensuring our projects enhance natural habitats and do not impact biodiversity negatively. We work together with policymakers, companies and civil society to meet biodiversity challenges and increase investment in nature, ecosystem restoration and resilience.
The EIB invests in nature in several ways:
we finance projects and support new financial players in the fields of climate and nature;
we provide loans to other financial institutions, who act as intermediaries for smaller projects and companies;
we invest in funds that leverage private investor interest in support of nature.
Together with the European Commission, we put in place the Natural Capital Financing Facility, a dedicated instrument to finance biodiversity and nature-based solutions in Europe.
Forestry, agriculture and urban nature
Forests are essential in the fight for climate action. They are major carbon stores and help increase resilience against some of the effects of climate change, such as soil erosion and increased flood risk. Our activities support the full forest value chain, including restoration of forests, afforestation and forest industries. We aim to protect and enhance biodiversity and ecosystem services, while fostering rural economic growth and employment.
Agriculture protects natural assets and uses them for our well-being. It is also the backbone for local entrepreneurship, employment and social development in many countries around the world. The EIB supports the rural economy to benefit entrepreneurs and society as a whole, promote environmental sustainability and lower agriculture’s CO2 emissions.
Greening a city has many positive effects: it reduces the risk of floods, tackles the negative effects of heat waves and improves local air and water quality. It also enhances the permeability of soils and limits encroachment on fertile land. Urban nature-based solutions can also strengthen social cohesion and increase the quality of life. Our support for urban regeneration and nature-based solutions in cities is improving living conditions for millions of citizens worldwide.
Sustainable Oceans and Blue Economy
Oceans and seas cover over 70% of the Earth's surface. They play a vital role for the planet’s climate and biodiversity. They also provide food, medicines, renewable energy and natural resources to billions of people around the globe. Since the 1970s, oceans have absorbed more than 90% of the excess heat from greenhouse gas (GHG) emissions. Keeping our oceans healthy is crucial for sustainable development and the reduction of poverty. The EIB is investing in the sustainable blue economy and supports initiatives to reduce pollution and preserve this natural resource.
Depollution including noise, clean air, clean water
Pollution prevention and control are key pillars of EU environmental policy. We promote an integrated approach to prevention and control of emissions into air, water and soil for the protection of the environment as a whole, and we finance depollution projects.
We provide project promoters with clear requirements for preventing, reducing and, as far as possible, eliminating pollution arising from different activities during the entire project lifecycle - from design to decommissioning. Our environmental and social handbook provides an outline of EIB’s standards.
We offer long term financing and technical advice, as well as support for research, development and innovation. Most of our water and wastewater activity is located in the EU, but we also support international initiatives such as the ACP-EU Water Facility, Horizon 2020 and the Alliance for Global Water Adaptation.
Circular economy and waste management
The EIB supports the transition towards a circular economy, where the value of products, materials and resources is maintained in the economy for as long as possible, and the generation of waste minimised.
Circular economy projects typically reduce resource consumption and waste generation which results in lower greenhouse gas emissions.
Disaster risk management, recovery and reconstruction
Natural disasters, such as earthquakes, floods, droughts, mudslides, avalanches and landslides, put human lives, ecosystems and economies at risk. Investment in disaster risk prevention and reduction is essential to enhance the resilience of persons, communities, countries and their assets, as well as the environment.
The EIB works on strengthening national and international governance on natural disaster preparedness and climate change adaptation, such as the Sendai Framework for Disaster Risk Reduction. Our climate strategy promotes a risk management approach to increase the resilience of assets, communities and ecosystems related to EIB projects.
We also support post-disaster reconstruction projects, a critical opportunity to build back better - including through integrating disaster risk reduction into development measures.
Energy
Energy systems must transform to meet long-term climate targets. We finance projects that:
Unlock energy efficiency: We support projects that include retrofitting and expansion of existing social and urban infrastructure and services.
Support the decarbonisation of energy supply: We finance renewable energy projects in Europe and beyond ─ onshore and offshore wind farms, solar, hydropower, geothermal and solid biomass projects, among others – and the development of the enabling infrastructure.
We also provide:
Sustainable energy project advice: Many cities and regions lack the necessary technical expertise and organisational capacity to implement large energy efficiency and renewable energy projects. ELENA (“European Local ENergy Assistance”) is there to help. It covers up to 90% of the technical support cost of preparing the implementation and securing the financing of the investment programme. Run by the EIB, ELENA is funded by the European Commission.
Climate impacts are carefully considered in every project we support. At the appraisal stage, we screen projects by examining 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 that rely 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.
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 is an important partner in helping the European Union move from ambition to reality. We will contribute to these goals under InvestEU, including the Just Transition Mechanism.
The EIB's contribution to the European Green Deal Investment Plan is expected to amount to €250 billion in terms of total green investments under EU mandates (through EU instruments and the EU budget).
European Council of Gothenburg: The EU’s sustainable development strategy is endorsed and the EIB is asked to support it. This image shows the EIB’s involvement in investments that protect our planet from the negative effects of climate change. Since 2002, the Bank and the Commission have been working together in this field.
4 July 2007
The EIB issues the world’s first green bonds on the capital markets, called Climate Awareness Bonds (CABs). The funds raised have help finance renewable energy and energy efficiency projects.
Starting June 2020, per the EU Taxonomy Regulation, the proceeds from can be used to support other areas of our work to fight climate change, including research, development and deployment of innovative low-carbon technologies, electric rail infrastructure and rolling stock, and electric buses.
Discover in this video some of the projects that CABs have supported.
September 2010
Adoption of EIB’s Environmental and Social Handbook, setting guidelines to include environmental concerns and human well-being in our projects.
23 July 2013
Launch of an Emissions Performance Standard (EPS) for all fossil fuel generation projects, which screens out investments whose carbon emissions exceed a threshold level. The EPS becomes part of EIB’s extensive set of climate standards.
22 September 2015
The EIB adopts its climate strategy, the result of a public consultation that has reviewed the EIB Group’s approach to climate action. The EIB Climate Strategy describes the Bank’s vision for its future work on climate action.
6 September 2018
The EIB issued its first Sustainability Awareness Bonds on the capital markets, intended to directly support sustainable finance. Initially focused on water projects, starting in 2019 SAB proceeds could be used to support education and health projects and, in 2020, to other financing areas directly related to the fight against COVID-19.
Watch the video for more information on the Sustainability Awareness Bonds.
14 November 2019
Adoption of an ambitious Energy Lending Policy Following an intensive stakeholder engagement, the EIB Group decides to phase out the financing of unabated fossil fuel energy projects, including natural gas, by the end of 2021. The Energy Lending Policy is a milestone in the Climate Bank’s fight against climate change. The Board of Directors also approves a new ambition for climate and environmental sustainability.
11 November 2020
EU member states approve EIB Group Climate Bank Roadmap 2021-2025 The Roadmap sets out in detail how the EIB Group will support the objectives of the European Green Deal and sustainable development outside the European Union in the critical decade 2021-2030. It comes at the end of a stakeholder engagement that included two major events in March and June and more than 200 written submissions to the Bank.
In the spotlight
Aligning all our operations with Paris agreement goals and principles
In 2019, the EIB Board committed to align all its financing activities with the principles and goals of the Paris Agreement by the end of 2020, a commitment that “greens” all EIB Group’s financing activities.
The Paris Agreement defines alignment by committing its signatories to make finance flows consistent with a pathway towards low greenhouse gas emissions and climate resilient development. It is important to stress both dimensions: low greenhouse gas emissions and climate resilience.
The first dimension implies, for instance, that assets created today are consistent with a pathway to a climate‐neutral economy, and that new investment should not undermine efforts to achieve the 1.5°C goal. The second dimension requires, for example, that infrastructure built today be resilient to the risks posed over the course of its operating life by a rapidly changing climate.
The Paris Agreement places climate in the wider context of the UN Sustainable Development Goals, including environmental and social dimensions. The EIB already has well-established environmental and social standards and risk management system, which seek to ensure that no project results in significant harm to environmental and human health and well‐being.
Climate action and environmental sustainability
Climate adaptation - we invest in projects that anticipate the adverse effects of climate change and take appropriate action to prevent or minimise the resulting damage. Early and well-planned adaptation can save lives and money. For example, such investments include projects that:
reduce the risk of floods,
develop resilient cities,
increase afforestation.
Climate mitigation - we support projects that reduce or prevent the emission of greenhouse gases. For example, this can be done by investing in:
research and development of low-carbon technologies,
renewable energy,
low-carbon transport solutions,
industrial de-carbonisation.
Environmental sustainability - we back activities that promote sustainable management of natural resources, biodiversity and the environment - find out more.
Climate finance is critical to addressing climate change. Large-scale investments are required to significantly reduce emissions, especially in sectors that emit large amounts of greenhouse gases. Climate finance is also important for adaptation, as significant financial resources are needed to enable societies and economies to adapt to the adverse effects and reduce the impacts of climate change.
Did you know? In 2007, we pioneered the green bonds market by issuing the world’s first Climate Awareness Bond (CAB), allocated exclusively to climate change mitigating activities in line with EU’s sustainability objectives. In 2018, our first Sustainability Awareness Bond (SAB) extended this approach to other environmental and social policy objectives. As of end of July 2020, the EIB remains world’s leading supranational of green and sustainability bonds with over €38 billion raised across 17 currencies. In total, CAB and SAB proceeds have helped finance 312 projects in 71 countries around the world.
Together with other experts, we have contributed to the EU Sustainability Taxonomy and the EU Green Bond Standard. The EU Taxonomy is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-carbon, resilient and resource-efficient economy. The EU Green Bond Standard, based on best market practice and the EU Sustainability Taxonomy classifications, aims to safeguard the robustness of the green capital markets.
Listen to our Head of Capital markets Eila Kreivi talking about climate risks
The EIB is committed to aligning its tracking methodology for climate action and environmental sustainability (“green”) finance with the framework defined by the EU Taxonomy Regulation and the EU Green Bond Standard.
The EIB plans to align its CAB/SAB Frameworks with the EU Green Bond Standard (EUGBS), as retained and amended by the European Commission. The EUGBS requires that EU green bonds are allocated to economic activities that meet the requirements of the EU Sustainability Taxonomy (EUST). In sectors that are not yet covered by the EUST, the EIB uses its definitions within the spirit and logic of the EUST. In September 2018 we became the first issuer to retain these principles in our CAB/SAB documentation, thus establishing a direct link between sustainability lending and funding in the spirit of the EU Taxonomy Regulation.
What's next: we will contribute to the EU Platform on Sustainable Finance to develop the EU Taxonomy to cover for wider areas of environmental and social sustainability.
The EIB Climate Survey 2020-2021
We have launched the third edition of the EIB Climate Survey. This year's survey reveals how the COVID-19 crisis influences citizens’ perception of the climate emergency. The findings are particularly relevant at a time when climate and a green recovery are top priorities in the EU’s agenda.
Conducted in partnership with market research firm BVA, the survey aims to inform the broader debate on citizens’ attitudes and expectations in terms of climate action in the European Union, the United Kingdom, the United States and China.
Climate Solutions is the award-winning podcast from the European Investment Bank. We know that stopping climate change is going to be very expensive. We’ll need to build more wind and solar farms. We’ll need to renovate buildings and electrify cars. We’ll need new technologies we haven’t even thought of yet. This is why we need green finance. And it’s why you should subscribe to the new season of Climate solutions: A dictionary of green finance.
The EIB Institute works closely with the academic community to advance research on climate change and sustainability. We have sponsored the creation of two Climate Chair positions with the European University Institute and Sciences Po to promote research in the field.
