World Bank Group President Jim Yong Kim and European Investment Bank President Werner Hoyer today confirmed the commitment of their respective institutions to support climate related investment. They further highlighted the crucial need to scale up engagement through enabling greater private sector involvement in climate finance.
The Presidents opened the first dialogue with leading government and business leaders involved in climate finance to be jointly hosted by the World Bank and European Investment Bank on the eve of the Spring Meetings of the World Bank and IMF in Washington DC.
“It is time for renewed action to address the global risk of climate change and 2015 provides a unique opportunity to focus on this fundamental threat. It is crucial to encourage a shift that delivers a more resource efficient, climate resilient and low-carbon global economy. Europe has a firm commitment to addressing climate change and the European Investment Bank, as the EU Bank, will build on a strong track record to address these challenges. Enabling greater involvement of private finance is essential to support investment that reduces emissions and tackles the risk of a changing climate.” said European Investment Bank President, Werner Hoyer.
Focusing on essential action needed to scale up climate finance the climate symposium addressed specific challenges hindering increased investment in forestry, energy efficiency, adaptation and renewable energy. Leading and experienced public and private sector practitioners from around the world shared understanding of how projects or national climate strategies have unlocked domestic and international climate finance and attracted greater support from the private sector.
The two multilateral financial institutions play a leading role providing financial and technical support for climate finance around the world. The Presidents of the World Bank and European Investment Bank emphasised the importance of sharing experience from existing policies and financial instruments to identify successful approaches to climate that could be replicated.
The European Investment Bank supports investment in low-carbon and climate resilient projects across Europe and around the world and is committed to ensuring that 25% of lending supports climate action. In 2014, the European Investment Bank provided EUR 19.1 billion for climate action projects, and EUR 90 billion for the last five years.
The EIB Group, consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), has issued a guarantee to AS Citadele banka to support new lending to companies based in all three Baltic States. The Group’s first agreement with AS Citadele banka, the deal will provide capital relief for the bank and enable it to grant at least €460 million in additional loans and leases to businesses in the Baltics over the next three years. Against the uncertainty of the current economic climate and geopolitical situation, the agreement is especially welcome and affirms EIB Group’s status as a countercyclical investor.
The European Investment Bank (EIB) will lend €35 million to the Spanish multinational GAM (BME ticker: GALQ), which specialises in turnkey machinery solutions for industry, to make its rental fleet electric and develop more sustainable last-mile solutions for its subsidiary Inquieto. The loan will also be used to digitalise and develop Kirleo, the company’s vocational training school, therefore supporting digital skills development and training at the company. The EIB loan is backed by the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe. This financing is in line with GAM’s strategic approach based on innovation and sustainability.
Promoting the circular economy through the production of eco-friendly panels and 100% green furniture is the main objective of the European Investment Bank (EIB)’s €115 million loan to the Saviola Group, a leading Italian company in the production of chipboards and recycled wood furniture.