EIB approves EUR 6.6 billion support for innovation, clean energy and affordable housing
9 October 2018
EUR 2.3 billion to strengthen industrial and corporate competitiveness
EUR 1.2 billion for urban rail, maritime and air transport
EUR 1 billion for renewable energy
Spanish, Polish and Bulgarian commuters, residents of Warsaw, Vilnius and Turku, and students across France will benefit from new financing by the European Investment Bank.
At their monthly meeting in Luxembourg earlier today the Board of the European Investment Bank (EIB) approved backing for EUR 6.67 billion of sustainable transport, urban development, water, clean energy and private sector investment across Europe and Africa.
“Yesterday the Intergovernmental Panel on Climate Change said in no uncertain terms that we must accelerate investment to reduce carbon emissions and adapt to a changing climate. The EU Bank has unique experience and a strong track record of supporting climate action projects, from sustainable energy, to transport and urban investment to name but a few areas. The projects we approved today are testimony to our commitment to sustaining and scaling up climate finance, which is essential for the future of this planet”, said Werner Hoyer, President of the European Investment Bank.
Transport investment to cut journey times and emissions
The EIB supports sustainable transport around the world. Today the EIB Board agreed EUR 1.2 billion of new financing for urban rail, maritime and airport investment. This includes upgrading urban rail in five Spanish cities, the construction of a new metro line in Sofia, improving tram services in Krakow and expansion of key national airport.
Shipping on the Danube and Sava rivers in Serbia will benefit from investment to enhance safe navigation and improve capacity.
Investment to allow larger vessels to use two local ports, expanding cargo and passenger traffic, will improve maritime access to Rome.
Backing private sector investment in innovation and energy efficiency
Companies across Europe and around the world will benefit from EUR 2 billion of new direct financing and support for investment through local partners.
This includes support for automation, robot and digitalisation technology, as well as development of electric and alternative fuel tractors, combines and crop spraying equipment by the world leading agricultural equipment maker AGCO.
The Board also approved financing for agricultural infrastructure in Ukraine, including grain elevators and storage.
New credit lines with local financial partners are going to unlock investment by companies in Spain, Italy, Ireland and South Africa.
The Board further decided support for tourism companies in Austria, climate related investment in Slovakia, and innovation activity by German companies.
Outside Europe the board agreed new EIB support for microfinance across Africa and investment by female entrepreneurs in Ethiopia.
Harnessing renewable energy and improving energy infrastructure
The EIB Board approved financing worth EUR 1 billion for new energy investment. This includes backing a 42MW solar project in Poland, two 500MW solar schemes in Morocco and a 420 MW hydropower scheme in Cameroon, as well as a cross-border interconnector between Mali and Guinea and renovation of electricity distribution across Greece.
The projects will significantly increase access to clean energy and reduce dependency on fossil fuel generation.
Tackling water challenges around the world
The EIB is the world’s largest financier of water investment. Today, the Board agreed to back new projects to upgrade wastewater treatment in Egypt’s second city Alexandria and Turku in Finland, as well as upgrading water infrastructure in Italy.
Additionally, it approved financing to reconstruct infrastructure damaged by flooding in the Dominican Republic and strengthen the resilience of existing facilities.
Supporting urban development and social housing
The EIB supports transformational investment in cities across Europe and around the world. New urban investment to reduce energy use by street lighting in Vilnius and energy bills on public and residential buildings across Moldova, improve public services in Turku and support smart investment in the Slovakian city of Nitra was agreed by the Board.
Students at schools in seven French regions and Trinity College Dublin will benefit from education investment approved by the board.
The EIB supports investment to improve education, research and teaching. Over the last five years the EIB has provided more than EUR 16 billion for education investment across Europe.
Enhancing access to high-speed internet
Two new projects will transform internet use by expanding fibre to the home connections in Europe and supporting the roll out of fibre optic networks across East Africa.
EUR 5 billion of new investment backed by the Investment Plan for Europe
Financing for 11 projects approved by the EIB board today will be guaranteed by the European Fund for Strategic Investments and are expected to mobilize an estimated EUR 5 billion of total investment.
There were no PPP projects approved by today’s meeting.
Climate financing by seven of the world’s largest multilateral development banks (MDBs) accounted for $61.6 billion in 2019, of which $41.5 billion (67%) was in low- and middle-income economies, according to the 2019 Joint Report on Multilateral Development Banks’ Climate Finance. The study expands the scope of reportingfor the first timeto all countries of operation. It now provides data on MDB climate finance commitments beyond those directed solely at developing and emerging economies, but with the focus remaining on low- and middle-income countries.
The EIB is set to support the development of new treatments for progressive vascular calcification, an area of significant unmet medical need where there are currently no approved treatments. To this end, the EU bank will provide a €20 million loan to Spanish biopharmaceutical company Sanifit, which is developing novel treatments in two disease indications linked to calcification.
The EIB and Italian biotech company EryDel SpA have signed a contract to provide a loan of €30 million to EryDel. This late-stage biotech company aims to develop and commercialise therapies based on its proprietary RBC technology for the treatment of rare diseases. The EU bank’s loan is backed by a guarantee from the European Fund for Strategic Investments (EFSI), the main pillar of the Investment Plan for Europe under which the EIB and the European Commission are working together as strategic partners, with the EIB’s financing operations boosting the competitiveness of the European economy.